Answer:
Adjusted basis $ 405,000
Explanation:
The adjusted basis will add to the original purchase price the capital improvements and decrease conidering the depreciation.
expenditures related to maintenance or repairs would not increase the adjusted basis as those just maintain the current value. It has to be an improvement, like redising, add a room, a bathroom plant some valuable ornament trees or any of these kind of expenses. Change a broken window for a new one is not considered capital improvement.
Original Purchase Price: $500,000
Capital Improvements: $ 89,000
Depreciation: <u> $( 184,000) </u>
Adjusted basis $ 405,000
Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
A producers profits are maximized when marginal costs are equal to marginal revenue.
Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, training and others. HRM plays a strategic role in managing people and the workplace culture and environment.
