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levacccp [35]
1 year ago
7

hans purchased a new passenger automobile on august 17, 2022, for $30,000. during the year, the car was used 40% for business an

d 60% for personal use. determine his cost recovery deduction for the car for 2022. a.$1,200 b.$1,333 c.$1,000 d.$500
Business
1 answer:
ss7ja [257]1 year ago
3 0

For a purchase of a new passenger automobile on august 17, 2022, for $30,000 which is used 40% for business and 60% for personal use during the year, cost recovery deduction for the car for 2022 is $1,200. (Option A)

Cost recovery refers to the business ability to recover (deduct) their investment costs and plays an important role in establishing a business' tax base and can influence investment decisions. An automobile is a listed property which refers to a specific form of depreciable property that may be utilized primarily for business purposes. In order for a property to be considered listed property, it must be used for company’s business more than 50%. However, as the automobile purchased is used 40% for business, it does not qualify as listed property, neither 179 expensing (that allows businesses to write off the entire cost of an eligible asset in the first year) or additional first year depreciation can be taken. As a general rule, an automobile loses 10% of its value (depreciation) as soon as it is driven. Hence, the depreciation would be $30,000*0.1 = $3000. The cost recovery deduction would be $3000*0.4 = $1200.

Learn more about Cost recovery:

brainly.com/question/15102991

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charger company's most recent balance sheet reports total assets of $28,413,000, total liabilities of $16,113,000 and total equi
OleMash [197]

The debt to equity ratio for the period, based on the total liabilities and total equity, would be  1.31

<h3>How to find the debt to equity ratio?</h3>

The debt to equity ratio shows the amount of debt that a company has as a ratio of the debts to the equity that the company has.

The debt to equity ratio can be found by the formula:

= Total liabilities / Total Equity

Total liabilities = $16, 113, 000

Total equity = $12, 300, 000

The debt to equity ratio is therefore:
= 16, 113, 000 / 12, 300, 000

= 1.31

Find out more on the debt to equity ratio at brainly.com/question/27993089

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5 0
9 months ago
On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interes
kari74 [83]

Answer:

If Interest is not Paid yet

Nantucket Ferry

Dr. Interest Expense $840,000

Cr. Interest payable  $840,000

BankOne

Dr. Interest receivable $840,000

Cr.  Interest Income     $840,000

If Interest is Paid

Nantucket Ferry

Dr. Interest Expense    $840,000

Cr. Cash                        $840,000

BankOne

Dr.  Cash                       $840,000

Cr.  Interest Income     $840,000

Explanation:

Amount of interest is the expense for Nantucket Ferry and Income for the BankOne on the bond.

As per given data

Amount borrowed  = $14,000,000

Coupon rate = 6%

Interest in paid on and received on the bnd is calculated by using the face value and coupon rate of the bond.

Coupon Payment = $14,000,000 x 6% = $840,000

$840,000 will be paid annually to the Bank one.

6 0
3 years ago
Which of the following best explains why the taxes on discontinued operations are reported separately from taxes on continuing o
Inessa05 [86]

Answer:

The statement that best explains why the taxes on discontinued operations are reported separately from taxes on continuing operations is:

The taxes on discontinued operations are not expected to recur in future years.

Explanation:

Discontinued operations refer to the cessation of some business activities or segments.  They are usually reported as a separate line item.  Therefore, all the gains and losses for that discontinued division must be reported separately on the company's income statement. The purpose is to distinguish them from those of continuing operations.

4 0
3 years ago
Once a civilization had a surplus of food, it could support which of the following?
erica [24]
What are the options?
5 0
3 years ago
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Select all the choices that decision makers could use marginal analysis for to make effective decisions.
mylen [45]
<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>
7 0
2 years ago
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