Answer:option (e)
None of the above
Explanation:
The mid quarter convention applies to this MACRS calculation.
§ 179 expense $500,000
Additional first-year depreciation= [($650,000 - $500,000) × 0.50]
$75,000 MACRS cost recovery ($75,000 × 0.05) 3,750
Total = $78,750
Income from the business before the cost is recovered is $600,000 less. Therefore, the Total cost recovered;
Total cost recovery= (78,750)
§ 179 business income limitation $521,250
Therefore, Augie's total cost recovery deduction;
= $500,000 + $78,750
= $578,750.
<span>The three principla forms of business organization are corporations, proprietorship and partnerships. Corporations have certain advantages like indefinite life, limited liability and eas of ownership transfers as well as easy access to capital markets. Corporations also have disadvantages like their earnings are subjected to double taxes, they must file federal reports for registration and state reports as well which are incredibly time consuiming and difficult. Proprietorships are unincorporated businesses that are owned by a single person. This single person is responsible for bearing all the losses as well as managing all the business, but they also get to take all the profits. This type of business is easy and cheap to form and has few federal regulatiosn. The income from it is not subjected to corporate tax but on personal taxes. It is harder to raise capital for this type of business, and the life of the business is limited to the life of the founder. Finally, partnerships are two or more people running and managing a business where the goal is to turn a profit. It sadvantages are that it is easy and inexpensive to buil, has few government regulations, and the income is only taxable at the partners personal level, not as a corporate tax rate. The disadvantages are that there is an unlimited liability to the partners and they are responsible for the extent of the business, it is difficult to transfer ownership and all partners must always agree on how they ahndle their interests as well as growth and raising capital.</span>
Answer:
c)-0.67
Explanation:
Calculation to determine what the price elasticity equal to
Using this formula
Price Elasticity of Demand (PED)=dQ/dP*Q/P
Let plug in the formula
Price Elasticity of Demand (PED)=d(100-4p)/dp*p/100-4p
Price Elasticity of Demand (PED)=-4*p/100-4p
at p=$10
Price Elasticity of Demand (PED)=-4*$10/100-4($10)
Price Elasticity of Demand (PED)=-40/60
Price Elasticity of Demand (PED)=-2/3
Price Elasticity of Demand (PED)=-0.666
Price Elasticity of Demand (PED)=-0.67 Approximately
Therefore the price elasticity equal to -0.67
Answer:
(D) $60,000 to preferred and $162,000 to common
Explanation:
Annual preference dividend = 10% * $300,000 = $30,000
Since dividends for the previous year were not paid, and the preference stock are cumulative, previous year dividend will need to be paid. ($30,000).
However, since no participating rule was defined, no additional dividend will be paid on preference stock.
Therefore, total payment on preference stock = current year dividend + previous year arrears = $30,000 + $30,000 = $60,000.
The balance will be paid on common stock
= $222,000 - $60,000 = $162,000
