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SVETLANKA909090 [29]
3 years ago
11

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $1,035,000, a recovery period of 5 years, an

d is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2019 (assume no income limitation)
Business
1 answer:
Irina18 [472]3 years ago
7 0

Answer:

The maximum deduction is $207,000.

Explanation:

As per MACRS depreciation table 5 years half year conversion depreciation rate for first year is 20% - 100%/5 = 20%

The maximum deduction is $1,035,000 * 20% = $207,000

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In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be
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Answer:

False

Explanation:

The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost

For example:

                                         Company A                                 Company B

sales price per unit                $100                                            $100

total costs per unit                  $80                                              $80

variable costs per unit            $50                                              $40

<u>fixed costs per unit                 $30                                              $40   </u>

contribution margin                $50                                              $60

4 0
3 years ago
In purchasing an existing business, Alice has decided to lease the equipment and fixtures from the original owner rather than pu
charle [14.2K]

Answer: thinning the assets

Explanation:

Thinning the assets refers to the reduction of the burden of an asset on the buyer by the seller do that the business can be priced at a reasonable value for the buyer. It is done to make a business more affordable.

Since Alice decided to lease the equipment and fixtures from the original owner rather than buying it outright to save money initially, this is thinning the assets.

7 0
3 years ago
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