Answer:
the depreciation expense recorded is $680
Explanation:
The computation of the depreciation expense under the straight-line method is shown below:
= (Purchase cost - residual value) ÷ (estimated life)
= ($17,500 - $1,180) ÷ ( 4 years)
= $4,080
Now the 2 months depreciation is i.e. from November to December
= $4,080 × 2 months ÷ 12 months
= $680
Hence, the depreciation expense recorded is $680
Answer:
P0 = 42.0443036 rounded off to 42.04
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- Do is the last dividend paid
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
We use D1 to calculate the price of the stock today (P0). Thus, we will use D5 to calculate the price of the stock in year 4 and will discount it back for 4 years to calculate the price of the stock today.
P4 = 3.4 * (1+0.08) / (0.133 - 0.08)
P4 = 69.28301887
Now we will discount back the P4 to P0.
P0 = 69.28301887 / (1+0.133)^4
P0 = 42.0443036 rounded off to 42.04
The amount that Vint and Gracie can claim for 2020 lifetime learning credit is <em>D. $600</em>.
Explanation:
Joint Modified Adjusted Gross Income for 2020 = $110,000
Tuition for the fall semester paid by Gracie = $3,000
Limit placed on lifetime learning credit = $2,000
Rate of lifetime learning credit = 20% of the first $10,000
Allowed lifetime learning credit = $600 ($3,000 x 20%)
<u>Answer Options</u>:
A. $0
B. $200
C. $400
D. $600
Thus, the amount that the couple can claim for 2020 lifetime learning credit is <em>D. $600</em>.
Learn more: brainly.com/question/14263483