Answer:
This gain is characterized on Proctor's tax return as $15,900 ordinary gain and $9,100 Section 1231 gain.
Explanation:
The following sorted schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2019 are given in the question.
2014 2015 2016 2017 2018 2019
$-0- $(3,800) $9,040 $(15,900) $-0- $-0-
The explanation of the answer is now given as follows:
The $9,040 Section 1231 profit in 2016 made the loss of $3,800 Section 1231 loss in 2015 to be recaptured in 2016.
Consequently, the only loss that must be recaptured in 2020 is the 2017 Section 1231 loss.
Therefore, we have:
Section 1231 gain = Gain on the sale of business land in 2020 - Section 1231 loss in 2017 = $25,000 - $15,900 = $9,100
Therefore, this gain is characterized on Proctor's tax return as $15,900 ordinary gain and $9,100 Section 1231 gain.
Answer:
The unit costs are $ 4.87 for 70 % Conversion Costs
The unit costs are $ 5.54 for finished goods
Explanation:
Total Materials cost = $ 115,080
Material Costs for one unit= $ 115,080/ 34000= $ 3.3847= $ 3.39
Conversion Costs= $ 72,072
Conversion Costs for one unit = $ 72072/34000 * 70%= $ 1.4838= $ 1.48
Total Cost per unit= $ 3.39 + $ 1.48= $ 4.87
Process Cost summary
Quantity Schedule
Materials = ($3.39 *34,000)= $ 115,080
Cost Added by Department: Total Cost Unit Cost
Materials= $ 115,080 $ 3.39
Conversion Costs
Labor + Overheads ( 1.48 * 34,000)= $ 50,320 $ 1.48
Units still in process ($ 72072- $ 50320) = $ 19,752 $0.58
Total cost to be accounted for $ 187,152 $ 5.54
Strategic planning is an Analytical approach through which strategic choices can be assessed.
Answer:
a. Capitalized : Equipment
b. Expensed
c. Capitalized : Building
d. Expensed
e. Capitalized : Equipment
f. Capitalized : Building
g. Capitalized : Building
h. Capitalized : Equipment
Explanation:
The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.
The costs exclude amounts collected in tax on behalf of third parties
Also not Capital expenditures increase the earning ability of the asset whilst revenue expenditure is the maintenance of such asset.