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docker41 [41]
3 years ago
7

Q 9.26: Crawford Trucking plans to dispose of two trucks in 2018. They sell the first truck on January 2 and the second truck on

July 9. If the end of their fiscal year is December 31, how will the calculation of book value differ for these two vehicles
Business
1 answer:
deff fn [24]3 years ago
5 0

Answer:

Crawford Trucking

Calculation of book value for disposal of two vehicles:

a) The Truck sold on January 2 would not have depreciation expenses computed for it.  The book value on January 1 would be the same on January 2.  It is not practical to compute depreciation expense for 1 day.

b) The Truck sold on July 9 would have depreciation computed for the year 2018 pro rated for six months.  The book value would be less than the Truck sold on January 2.

Explanation:

Depreciation expense may be pro rated depending on the prevailing circumstances.  This becomes necessary because the sold unit may not be fully utilized for the period under review.  Under the matching principle of generally accepted accounting principles, it is imperative to match revenue to the period they were incurred.

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Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the
Papessa [141]

Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, this might be so because low-income individuals are more prone than high-income individuals to purchase alcohol, tobacco, and gasoline.

<h3>What are Excise taxes?</h3>
  • Any duty on produced items that are assessed at the time of manufacture rather than the time of sale is known as an excise or excise tax.
  • Excises and customs duties are frequently used interchangeably, although customs taxes are imposed on already-existing products when they cross a defined border in one direction, whereas excise is imposed on goods that were created inland.
  • State sales taxes and excise taxes on alcohol and cigarettes are frequently criticized for being regressive.
  • Despite the fact that everyone pays the same rate regardless of income, this may be the case because people with low incomes are more likely than those with higher incomes to buy alcohol, cigarettes, and fuel.

To learn more about Excise taxes refer to:

brainly.com/question/22358769

#SPJ4

5 0
1 year ago
Economic sanctions are more restrictive than trade sanctions <br><br> True or False
boyakko [2]
The answer is True, hope this helps
6 0
3 years ago
Penn Inc., a manufacturing company, owns 75 percent of the common stock of Sell Inc., an investment company. Sell owns 60 percen
ratelena [41]

Answer:

Option B-Consolidation used for both Sell and Vane.

Explanation:

Both of the companies must be consolidated because the parent company controls both of the company and according to International Financial Reporting Standard, the companies that the parent company directly controls (75% ownership of Sell Inc. and 75% control) or indirectly controls (75%*60%= 45% ownership of Vane Inc. and 60% control of the company) must be consolidated. Here Penn Inc. controls both the subsidairies Sell Incorporation and Vane Incorporation, so they must be consolidated to group accounts.

4 0
2 years ago
Upton Industries has revenues of $42,629, interest expense of $1,230, depreciation of $2,609, cost of goods sold of $23,704, div
Softa [21]

Based on the various transactions, the addition to retained earnings was <u>A. $5,075.88</u>

<h3>What was the after tax net profit ?</h3>

This can be found as:

= (Revenues - Interest expense - Depreciation - Cost of goods sold - Admin expenses) x ( 1 - tax)

= (42,629 - 1,230 - 2,609 - 23,704 - 7,040) x ( 1 - 22%)

= $6,275.88

<h3>Addition to retained earnings </h3>

= After tax net profit - Dividends paid

= 6,275.88 - 1,200

= $5,075.88

In conclusion, option A is correct.

Find out more on retained earnings at brainly.com/question/25998979.

3 0
2 years ago
Which budgeting approach requires justification for all expenditures
Kitty [74]

Answer:

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2 years ago
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