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marshall27 [118]
3 years ago
13

Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h

ave a salvage value of $22,000. The machine is expected to be used for 10,000 working hours during its 4-year life.
A. Straight Line for 2015

B. Units of Activity for 2015, assuming machine usage was 1,700 hours

C. Declining-balance using the double straight line rate for 2015 and 2016
Business
1 answer:
andre [41]3 years ago
5 0

Answer:

A. $29,000

B. $19,720

C. $69,000

$34,500

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($138,000 - $22,000) / 4 = $29,000

Unit of activity = Cost of asset - Salvage value) / Total working hours

= ($138,000 - $22,000) / 10000 = $11.6

$11.6 × 1700 = $19,720

Double declining method = Depreciation factor × net book value

Depreciation factor = 2 × (1/useful life)

2(1/4) = 0.5

0.5 × $138,000 = $69,000

Net book value = $138,000 - $69,000 = $69,000

Depreciationexpense for the second year = 0.5 × $69,000 = $34,500

I hope my answer helps you

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Answer:

1. Short-term capital gains of $10,000 from the sale of stock.

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Explanation:

An income statements shows revenue, expenses and net income over a specified period of time. Revenue (gross revenue or sales revenue) consists of cash inflows and interests both short term and long term such as profits, interest on investments. Expenses consist of cash outflows, using-up of assets and incurred liabilities such as tax, rents and so on. Gifts are not included as part of income statements

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Vaughn Manufacturing sells one product and uses a perpetual inventory system. The beginning inventory consisted of 85 units that
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Explanation:

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Sales= 362 units for $46 each.

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2 years ago
Suppose that TapDance, Inc.’s, capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of de
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Answer:

11.07%

Explanation:

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= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

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We simply multiply the weighatge with its capital structure so that the correct weightage cost of capital can come.

5 0
3 years ago
2. What would you say to some who said that citizens had no right to know where their federal income tax money goes?
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bob katz and sally mander are a married couple with four children. total wages for 2018 equaled $102,400. stock which had been p
xxTIMURxx [149]

Answer:

Bob Katz and Sally Mander

Taxable Income for 2018:

= $78,200

Explanation:

a) Data and Calculations:

Total wages =                  $102,400

Gain from sale of stock =     5,200

Interest income =                      100

Total income =                 $107,700

less total deductions =     (29,500)

Taxable Income =            $78,200

b) Bob Katz and Sally Mander will have taxable income of $78,200 when the appropriate rate of tax is applied and the tax liability obtained, then the $1,500 tax credit will be deducted before arriving at the tax liability due.  

c) The short-term capital gain of $5,200 is taxed as ordinary income.  Since it is held for less than a year, it will be included in the taxable income for that year and it follows the same tax brackets as ordinary income.  On the other hand, the long-term capital gain of  $13,000 will attract a tax rate of 0 percent for a taxable income of $78,200.  Otherwise, it will attract a tax rate of 15 percent or 20 percent, depending on income level. This means that long-term capital gains tax rates are much lower than the ordinary income tax rate.

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3 years ago
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