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mojhsa [17]
4 years ago
8

Miller owns a personal residence with a fair market value of $202,700 and an outstanding first mortgage of $162,160, which was u

sed entirely to acquire the residence. This year, Miller gets a home equity loan of $10,135 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?
Business
1 answer:
jenyasd209 [6]4 years ago
6 0

Answer:

Explanation: Miller Personal residence market value = $202,700

                                                               Mortgage value = <u>$162,160</u>

                                            Remaining Mortgage value = $<u>40,540</u>

           Current year, he gets Home equity loan valued = $10,135

The total mortgage debt treated( paid) = $162,160 + 10,135 = <em>$172,295</em>

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Murphy company has three departments, and uses a multiple predetermined overhead rate system. Department A manufactures parts in
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1. Department A  (manufactures parts in a highly automated process): Machine hours

2. Department B  (assembles the parts by hand): Direct labor hours

3. Department C (places completed units in a heat chamber to sterilize the before they are shipped out): Batches

Explanation:

Machine hours is used to measure factory overhead as against the goods produced. This method is usually applied in production environment using machine, and where the most activities are done by machines.  On the other hand direct labor is used when the production of goods and services is done by human hands, and not machines. While Machine hours is the appropriate overhead allocation rate for Department A, Direct Labor hours will be appropriate for Department B. Hence Batches will be appropriate for Department C.

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A company purchased factory equipment on April 1, 2022 for $69600. It is estimated that the equipment will have a $12000 salvage
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Answer:

$4,320

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Depreciation expense at December 31, 2022=[($69,600 - $12,000) ÷ 10] × 9/12

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Therefore Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is:$4,320

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