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IRISSAK [1]
3 years ago
14

Euclid acquires a 7-year class asset on May 9, 2019, for $176,500 (the only asset acquired during the year). Euclid does not ele

ct immediate expensing under § 179. He does not claim any available additional first-year depreciation. Calculate Euclid's cost recovery deduction for 2019 and 2020.
Business
1 answer:
tatiyna3 years ago
3 0

<u>Solution and Explanation:</u>

<u>Calculation of Elucid’s cost of recovery deduction for the year 2019 and 2020 </u>

Cost of recovery deduction for 2019 = Assets value * depreciation rate for the first year

=176500 * 14.29 \text { percent } ( it has calculated by using MACR table)

= $ 25221.85

Therefore, the cost of recovery of deduction in 2019 is $25221.85

<u>Cost of recovery deduction for 2020 = Assets value * depreciation rate for the first year </u>

=\$ 176500 * 24.29 \text { percent } ( it has calculated by using MACR table)

= $42871.85

Therefore, the cost of recovery of deduction in 2020 is $42871.85

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A company has outstanding 10 million shares of $2 par common stock and 1 million shares of $4 par preferred stock. The preferred
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C. Preferred stockholders will receive the entire $300,000 and they must also be paid the remaining $20,000 sometime in the future before common stockholders will receive any dividends.

Explanation:

Preferred shares have preference over the common shares in respect of dividend. Since $300,000 is paid as dividend, the entire amount has to be paid to the preferred shareholders, as the total amount payable to them as dividend = $1,000,000 * 4 *8% = $320,000, which is more than the total dividend declared.

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Gary had developed an extremely successful advertising and promotion campaign for a client in the United States. The client want
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5 0
4 years ago
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Answer:

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An annual fee is a common fee that every bank charges for the maintenance of your bank account with all cards attached to it.

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