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11111nata11111 [884]
2 years ago
10

Orange Corporation acquired new office furniture on August 15, 2018, for $130,000. Orange does not elect immediate expensing und

er § 179. Orange claims any available additional first-year depreciation. If required, round your answer to the nearest dollar.
a. Determine Orange's cost recovery for 2018
The office furniture is classified as a seven-year class of property for MACRS. If bonus depreciation is elected, Orange's deduction is
b. Determine Orange's cost recovery for 2018 if Orange decided to only use $52,000 of bonus depreciation and normal MACRS on the balance of the acquisition cost.
Business
1 answer:
VLD [36.1K]2 years ago
5 0

Answer:

Explanation:

a) The asset is purchased in 2018.

In 2018, bonus depreciation % has been increased from 50% to 100%. If bonus depreciation is elected Orange Corporation can deduct 100% of Purchase cost of $130,000.

The office furniture is classified as seven year class of property for MACRs. If bonus depreciation is elected Orange's deduction is $130,000

= $130,000

b) if Orange decides to use only $52,000 of bonus depreciation, it can claim depreciation (MACRS) on balance amount of acquisition cost.

Cost Recovery for 2018:

Bonus depreciation = $52,000

MACRS Depreciation [($130,000 - $52,000) * 14.29%]= $11,146.20

Hence, Cost Recovery for 2018 = Bonus depreciation + MACRS Depreciation

= $52,000 + $11,146.20  

= $63,146 (rounded off to nearest dollar)

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our individuals form a business and create a contract to divide the profits equally among the four. Gary invests $11,000, Neil i
Sedbober [7]

Answer:

$800

Explanation:

The computation is shown below:

First we have to determine the total amount invested that is shown below:

= $11,000 + $4,000 + $5,000 + $8,000

= $28,000

And, the profit is $5,600

So, the percentage is

= $5,600 ÷ $28,000

= 0.2

Now the Gary share is

= $11,000 × 0.2

= $2,200

And, each share in profit

= $5,600 ÷ 4

= $1,400

Now the final amount is

= $2,200 - $1,400

= $800

6 0
3 years ago
Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this
Citrus2011 [14]

Question Completion:

Cash received from bank loans was $10,000.

Revenues earned and received in cash were $9,000.

Dividends of $4,000 were paid to stockholders.

Expenses incurred and paid were $5,600.

Answer:

Jiminez, Inc.

Income Statement for the month ended March 31:

Revenue                                          $9,000

Expenses                                           5,600

Net income                                      $3,400

Dividends                                          4,000

Retained earnings during the year ($600)

Explanation:

Jiminez, Inc. paid more dividends to stockholders this month than it actually generated in net income.  The excess amount of dividends must be from retained earnings carried forward from the previous month.  In preparing the income statement for the month of March, Jiminez, Inc. must deduct all the expenses from its revenue to obtain the net income before tax.  The bank loan does not form part of the items for the preparation of the income statement, as only temporary accounts are considered.

3 0
3 years ago
Sherry owns a car business. She just received a shipment of Volkswagen SUVs. She paid $60,000 for each vehicle and wants to make
densk [106]

The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $<u><em>75,000</em></u>.

<h3>What is the selling price?</h3>

The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.

The computation of the selling price of the car:

Given,

  • Cost price =$60,000
  • Margin =25%

\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}

Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.

Learn more about selling price, here:

brainly.com/question/3798799

5 0
2 years ago
The following stockholders' equity accounts arranged alphabetically are in the ledger of Wildhorse Co. at December 31, 2020.
Andrei [34K]

Answer:

Wildhorse Co.

The stockholders' equity section of the Balance Sheet at December 31, 2020

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

Explanation:

a) Data:

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

b) The major components of the stockholders' equity include the stock accounts, paid-in capital, retained earnings, and the treasury stock.  The stockholders' equity represents the difference between the assets and the liabilities of Wildhorse Co.  The equity section shows the capital contributions of Wildhorse stockholders and the accumulated retained profits.

5 0
3 years ago
Project managers typically use ________, also called analogous estimating or the ______ method when there is a past history of s
VMariaS [17]

Answer:

1. top-down

2. apportion

Explanation:

Based on the manufacturing industry standards, Project managers typically use TOP-DOWN also called analogous estimating or the APPORTION method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two to five years out because, as estimating methods go, it is faster and less expensive.

3 0
2 years ago
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