What is the amount of Justin and Jenna's earned income tax credit reported in the payments section on page 2 of their tax return
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Answer: Option B
Explanation: Under the straight line method of depreciation, the value of the asset is divided equally to its useful life. It is computed as follows :-
NOW,
A. Straight line method as per the above equation provides for equal productivity.
B. Dividing the usefulness equally results in ignorance of change in the rate of asset use as the asset may be used less initially but more in later years.
C. As the expense from the method remains same and the actual value of the asset diminishes it results in higher rate of return.
D. Decreasing charge method charge depreciation on written down value whereas straight line charges t initial cost thus it gives higher write offs than decreasing charge.
<span>1. what was the cost of raw materials used in production during the year?
The Cost of Raw Materials Used based on the T-account is 110,000
2. how much of the materials in (1) above consisted of indirect materials?
Of the 110,000 Cost of Raw Materials used, 20,000 consists of indirect materials.
110,000 - 90,000 = 20,000
3. how much of the factory labor cost for the year consisted of indirect labor?
The indirect labor of the factory labor cost for the year is 35,000.
185,000 - 150,000 = 35,000.
4. what was the cost of goods manufactured for the year?
The cost of goods manufactured for the year is 470,000. Work-in-Progress T-account.
5. what was the unadjusted cost of goods sold for the year?
The unadjusted Cost of goods sold for the year is 450,000. Finished goods T-account. </span>
The Cost of Raw Materials Used based on the T-account is 110,000
2. how much of the materials in (1) above consisted of indirect materials?
Of the 110,000 Cost of Raw Materials used, 20,000 consists of indirect materials.
110,000 - 90,000 = 20,000
3. how much of the factory labor cost for the year consisted of indirect labor?
The indirect labor of the factory labor cost for the year is 35,000.
185,000 - 150,000 = 35,000.
4. what was the cost of goods manufactured for the year?
The cost of goods manufactured for the year is 470,000. Work-in-Progress T-account.
5. what was the unadjusted cost of goods sold for the year?
The unadjusted Cost of goods sold for the year is 450,000. Finished goods T-account. </span>