What is the maximum depreciation in 2021 for an automobile driven 100% for business that was acquired on July 2, 2021, for $28,000? Assume the taxpayer elects Section 179 on the automobile but elects out of bonus depreciation. This is the only property placed in service during 2021. The vehicle has a gross vehicle weight rating under 6,000 pounds. O $25,000 O $10,200 O $10,000 O $18,000 O $28,000
Q: Rs Rs Sales 200,000.00 Return Inwards 6,300.00 Purchases 86,500.00 Return Outwards 5,790.00 3,000.00…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a…
A: Formulas that are used:-
Q: During the current year, CF Manufacturing Co. incurred $370,000 of indirect labor costs, $15,000 of…
A: Amount transferred from the manufacturing overhead account includes indirect material, indirect…
Q: Lloyd Gurango Co. completed the following sales transactions during the month of June 2019. All…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: Sales variance is the difference between sales price and ---------- Labour rate variance Sales…
A: Answer) The correct Answer is Sales Volume Variance.
Q: dentify each of the following statements as either true or false. a. A voucher system of control…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: The quality assurance personnel inspect the cookies before they are packaged for sale. Any cookie…
A: Material Price Variance: This variance arise when Actual Price of material is different from…
Q: Instructions: I. Resolve the ratios listed on table a for each year (2020 & 2021): a. For each…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: lease answer in details, also explain why other options are wrong . Please answer within 30 minutes.…
A: Tax documents are the sets of records to be kept regarding tax collected, tax paid, tax payable and…
Q: Giordano Corp. sold machinery for $2,000,000 and it was delivered in November 2020. On November 20,…
A: Standalone value is a method of valuation that assesses a company's worth in its current condition…
Q: SergioRal the Balian aner who strted eporing cicken et from rai toChia Which fthe foloing events was…
A: Entrepreneurial alertness means capability of an individual to process and analyse information and…
Q: Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: Revenues…
A:
Q: Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has…
A: Formula: Return on investment (ROI) = Net income / Average assets Residual income = Net income -…
Q: Lilitop Corporation purchases trees from Hummer lumber and processes them up to the split-off point…
A: Sales value can be determined by multiplying total sales units by sales price per unit.
Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…
A: Earnings per share is the ratio of total earnings to the total number of shares iutstanding.
Q: An asset is purchased for P 20,000. Its estimated life is 10 years after which will be sold for P…
A: Depreciation expense is the reduction in the value of asset due to its use (how much the asset is…
Q: Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020.…
A: The cash flow statement is prepared to record cash flow from various activities during the period…
Q: Question 4 Pendrill makes car bumpers. The following information is obtained from January's budge…
A: Point to be noted In absorption Costing, all manufacturing costs form part of the cost of goods…
Q: The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the…
A: Depreciation accounting
Q: ty taxes to the state government, $500 to the developer of the su real property taxes on land they…
A: House Tax: Property tax, or any other type of home tax, is normally charged by the national…
Q: A person has some money in his/her checking account (say $100) and five transactions each of 10, 20…
A: As per withdraw & deposit methods synchronization helps to establish a lock to the object and…
Q: Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The…
A: What is meant by Make or Buy Decision making? It is the process of deciding whether to inhouse…
Q: Question 42 When the Fed purchases government securities, it Question 42 options: a)…
A: Government securities are government borrowing financings that are used to fund everyday activities…
Q: Homework created question Save You want to purchase a new car for a price of $31,250. Your finance…
A: The question is based on the concept of Financial Management.
Q: Fixed Overhead Variances Rostand Inc. operates a delivery service for over 70 restaurants. The…
A: given Fixed Overhead Variances Rostand Inc. operates a delivery service for over 70 restaurants.…
Q: Johnson Ltd produces 3000 units of a single product in the period under review . Direct labour per…
A: Variable cost per unit = Prime cost per unit + Indirect Variable overhead cost per unit
Q: The new delivery truck is worth a total of Php 7.4M, with a residual value after 8 years is Php…
A: Rate of depreciation under diminishing balance Method = 1 - (Salvage value/Original cost)8
Q: Sleeping Bear Travel, Incorporated, is trying to decide between the following two alternatives to…
A: The income statement is prepared to determine the operating results of the business. The income…
Q: ABC company projected sales of 100,000 books for 2021. The estimated January 1, 2021, finished goods…
A: Budgeted production = Projected sales + Ending inventory - Beginning inventory
Q: Martin Manufacturer Ltd started its operations on 1 January 2021, and the planned production for…
A: The income statement represents the net income or net loss of the company that is calculated by…
Q: ABC Company data: Sales 9s0000 Variable and fixed costs both 468000 Beginning retained earnings…
A: Formula: Ending Retained Earnings = Beginning retained Earnings + net income - Dividends paid
Q: Compare option valuation with stock and bond valuation
A: Stock Valuation is the procedure of determining the current worth of stock at a particular period of…
Q: A company reports the following beginning inventory and two purchases for the month of January. On…
A: Under LIFO Method, using perpetual inventory system, value of ending inventory is calculated on the…
Q: Journal entries? Jackson Invested $ 250000 in to Electronics shop as capital Paid salaries to…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: The Hy-Tech Services Corporation employs researchers based in countries around the world. Employee…
A: Cost of intangible asset does not includes the following cost : 1. Annual maintenance cost 2.…
Q: Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of…
A: A balance sheet is a financial statement that shows the assets, liabilities, and shareholder equity…
Q: 1. Explain how to account for share investment?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Payment of the loan is expected to be in the form of cash, and in currency, as agreed upon in the…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Pre-tax rate of return: r= 0.10 Tax rate on the returns to investment: t = 0.25 Consider the…
A: when there is spending by the government it is generally done during the time of economic down turn…
Q: A small gift shop has a beginning inventory at $9,120. If the additional inventory detailed in the…
A: Cost of goods sold is calculated as difference between cost of goods available for sale and ending…
Q: Star Company purchased a computer on January 2, 2012, at a cost of $2,500. The computer is expected…
A: Formulas: Gain (loss) on sale of computer = Sales value of the computer - Net book value of the…
Q: Required information [The following information applies to the questions displayed below.] Dillon…
A: The itemized deduction decreases the tax liability because it reduces the taxable income of the…
Q: do deficiencies in internal control not always lead to material misstatement when recording…
A: internal controls rules and procedures that are implemented in order to ensure the integrity and…
Q: Required information (The following information applies to the questions displayed below.) On…
A:
Q: and Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate…
A: capital lease is the lease when present value of lease payments are more than 90% of Fair value of…
Q: Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of…
A: Income statement shows the net income or loss which is earned by business during the year. It can be…
Q: A company's contribution margin per unit is $25. It the company increases its activity level from…
A: Formula: Change in units = Current units - Previous units
Q: f c/s =25% , prime cost $140, fixed cost $4600 contribution 80 and absorption cost is40. What is the…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: How do the NOCLAR standards change the traditional practice of maintaining confidentiality of audit…
A: Auditing is defined as onsite validation activities such as: Inspection or investigation of…
Q: Assuming HST is not charged, what will a POS Summary result in a credit to: * Bank O A/R O A/P O…
A: Point of sale (POS) is place where a customer made payment for goods or services. Point of sale…
1
Step by step
Solved in 2 steps
- A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is the only asset placed in service in 2021. Assuming half-year convention, bonus depreciation, and taxable income before cost recovery of $5,000, what is the amount of cost recovery in 2021? a.$5,000 b.$25,000 c.$30,000 d.$0 e.$50,000H6. A taxpayer places a $53,000 5-year recovery period asset (not an auto) in service in 2022. This is the only asset placed in service in 2022. Assuming no special elections (e.g., election to expense), what is the amount of total cost recovery deduction? a. $17,490 b. $53,000 c. $10,600 d. $5,300Answer only 13 and 14 th question not whole 11) Jill purchased a printing press for her business on 6/15/21 costing $60,000. The installation cost $2,000 and the sales tax was $5,000. What is Jill's basis in the equipment? 12) Using the info in question 11, what is the amount of depreciation for 2021? 13) Using the info from questions 11 and 12, if Jill sells the printing press on 7/2/22 , what is the adjusted basis on the date of the sale ? 14) Using the info from questions 11,12 and13 What is the gain or loss on the sale of the printing press if she sells it for $40,000?
- Question 27 Gemini Auto Repair is a calendar year taxpayer. In 2019, the repair shop purchased a light weight truck that it used to drive customers back and forth to their cars while the shop worked on their cars (1.e. for business purposes). In 2020, it sold the truck for a total gam of $15,500 and the accumulated depreciation for the truck was $9,300. What was the character of the 2020 gain on the sale of the truck, assuming that Gemini did not sell any other assets that year and that the shop had not had any Sec. 1231 losses in the past 10 years? If there is more than one type of character that is relevant to the gain, state the specific dollar amount associated with each type of character that makes up the total gain and/or income from the sale transaction for Gemani in 2020. OI. $9,300 ordinary income, $6,200 long-term capital gain OII. $15,500 ordinary income only O III. $9,300 ordinary income only O N.S9,300 long-term capital gain only OV. $6,200 ordinary income only O VI.…You purchase an asset that has a 10-year recovery period, per IRS tax code. This asset has a cost basis of $9.200. How much depreciation could you take in year 4? O $1.060 O $1,149 O $9.200 O $848QUESTION 8 Generally speaking, taxpayers have incentives to use the fastest possible method to depreciate assets. Which of the following statements is not consistent with this taxpayer objective? CA business chooses 150n declining balance method to compute its MACRS depreciation rather than the default 200 declining balarce method OA business owner uses 100w bonus depreciation to write off all current yelb qualifed asset additions O Racetrack owners depreciate tracks over 7 years rather than 15 years ORAsmall business owner claims the largest possible armoun of Section 179 immediate expensing
- Q1 Bowtock purchased an item of plant for $2,000,000 on 1 October 2000. It had an estimatedlife of eight years and an estimated residual value of $400,000. The plant is depreciated onstraight-line basis. The tax authorities do not allow depreciation as a deductible expense.Instead, a tax expense of 40% of the cost of this type of asset can be claimed against incometax in the year of purchase and 20% per annum (on a reducing balance basis) of its tax basethereafter. The rate of income tax can be taken as 25%.REQUIRED:In respect of the above item of plant, calculate the deferred tax charge/credit in Bowtock’sincome statement for the year to 30 September 2003 and the deferred tax balance in thebalance sheet at that date. Note: work to the nearest $000.Q.1 On May 5, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $460,400 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2021, his business generated a net income of $552,480 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2021 and 2022A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is the only asset placed in service in 2021. Assuming no special elections (for example, election to expense), what is the amount of total cost recovery deduction? Oa. $25,000 Ob. $5,000 Oc. $30,000 Od. so Oe. $50,000
- Part I. IRS Publication 534 and Publication 946 Determine the amount of depreciation allowed for each case: Case 1: A taxpayer bought and put into use a piece of machinery in 2012 that cost him $90,000 with a useful life of 7 years. Determine the depreciation expense for recovery year 3.Case 2: A taxpayer bought and put into use a piece of machinery in 2012 that cost him $200,000 with a useful life of 5 years. Determine the depreciation expense for recovery year 5.Question 11 of 25. Bart's investment property was condemned. His basis in the property was $100,000. He received a net award of $120,000. Later that same year, he purchased a replacement property for $150,000. What is the amount of gain recognized after the replacement property is purchased? $0 $20,000 $50,000 $150,000Subject : accounting On September 14, 2022, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $48,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate Jay's depreciation deduction for 2022 assuming bonus depreciation.