Answer:
Depreciable amount= $880,000
Explanation:
Giving the following information:
Your company buys a tower crane for $900,000 on January 1, 2019. It has a 20-year life, it's expected salvage value is $20,000.
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (900,000 - 20,000)/20= $44,000
Depreciable amount= original cost - salvage value= 880,000
Answer: B. $40,000, $960,000
Explanation:
The long term obligation will be 80% of the collateral value which will be:
= 80% × $1.2 million
= 0.8 × $1,200,000
= $960,000.
Therefore, the short term obligation will be:
= $1,000,000 - $960,000
= $40,000
Answer:
B
Explanation:
In a lease that is recorded as a finance- sales type lease by the lessor, interest revenue should be recognized over the period of the lease using the effective interest method
The effective interest method uses a constant rate of interest applied to any outstanding lease obligation. Though the interest rate being constant, the interest
expense will be different each period because the obligation outstanding changes each period, so this should be recognized when recorded
Answer:
C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents
Explanation:
American Opportunity tax credit was called the HOPE credit. It is available for the first four years of an individual's post secondary school education.
It covers 100% of the first $2,000 cost for tuition, fees, books, and course material.
Items that do not qualify are room and board, transportation cost and personal expenses.
The tax credit is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.
Answer:
The answer would be neutrality of money theory
Explanation:
The neutrality of money theory claims that changes in the money supply affect the prices of goods, services, and wages but not overall economic productivity. Many of today's economists believe the theory is still applicable, at least over the long run.
