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3 years ago

How much interest, if any, can jaxon deduct in year 0 if his business uses the cash method of accounting for tax purposes?

1 answer:

6 0

<span>Jaxon can deduct in year 0 if his business uses the cash method of accounting for tax purposes $750 under either cash or accrual method of accounting. Jaxon can only deduct two months of interest ([$4,500/12] Ă— 2) because prepaid interest is not deductible under either method of accounting.</span>

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Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected

son4ous [18]

Answer:

Correct option is (D)

Explanation:

Given:

Purchase price of copyright = $50,000

Expected useful life = 5 years

Annual depreciation expense as per straight line method:

= Purchase price ÷ useful life

= 50,000 ÷ 5

= $10,000

Only useful life is considered and not legal life.

Carrying value of asset at the end of year = Book value of asset - annual depreciation

Carrying value of copyright at then end of first year = 50,000 - 10,000 = $40,000

Carrying value of copyright at then end of second year = 40,000 - 10,000 = $30,000

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3 years ago

Households pay firms for goods and services. Firms supply households with goods and services. The purchase and supply of goods a

nikdorinn [45]

The purchase and suppy of goods and services takes place in the product market.

7 0

3 years ago

Read 2 more answers

Type of power based on manager's ability to influence employees with something of value to them.

frosja888 [35]

Answer:

incentive or reward

Explanation:

incentive pay, time and a half pay for overtime are examples

4 0

2 years ago

ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val

vodka [1.7K]

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

The present values of the investment proposals will be inaccurate.
The cash flows might be inaccurate.
The discount factor to be used will also be inaccurate.
The overall results will be misleading.
The tax credits and balancing allowances and charges will also be inaccurate.

6 0

3 years ago

Here I Sit Sofas has 7,500 shares of common stock outstanding at a price of $98 per share. There are 760 bonds that mature in 34

mojhsa [17]

Answer:

61.28%

Explanation:

Equity market value = Number of shares*price/share

Equity market value = 7,500 * $98

Equity market value = $735,000

Current debt value = Number of bonds*price/bond

Current debt value = 760*(1.105*2000)

Current debt value = $1,679,600

Preferred stock value = Number of shares*price/share

Preferred stock value = 6,400 * $51

Preferred stock value = $326,400

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $735,000 + $1,679,600 + $326,400

Total capital = $2,741,000

Weight of debt = Debt value / Total capital

Weight of debt = $1,679,600 / $2,741,000

Weight of debt = 0.6127690623859905

Weight of debt = 61.28%

7 0

3 years ago