Answer:
b)
Annual Depreciation expense= $58,800
Explanation:
<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>
So we will add the purchase cost to installation , freight charges.
Cost of assets = 300,000 + 14,000 + 40,000 =$354,000
Annual depreciation = (Cost - Scrap Value)/ Number of years
= (354,000 - 60,000)/5
=$58,800
Annual Depreciation expense= $58,800
Answer:
b. number of shares issued is 80,000
Explanation:
In the question, the common stock par value and the total amount is given. Moreover, paid-in capital is also given.
So, if we compute it, then it gives the number of shares issued because it contains a formula which is shown below:
Number of shares issued = (Common stock ÷ Par value)
= ($80,000 ÷ $1)
= 80,000 shares
So, paid-in capital is not relevant in the computation part, and therefore, the other options are wrong except b. option.
Answer:
A factory building used in the business and held more than one year.
Explanation:
<u>According to Section 1231</u>. property are assets that are used in your trade or business and are held by the Taxpayer for more than one year.
The factory building has serve the purpose of the section. It is used for a trade and has been held by the taxpayer for more than a year, hence, the property can be termed an assets by a manufacturing business
Both y and x is the correct answer
