All categories

3 years ago

Which of the following is considered a capital asset for federal income tax purpose?

Business

1 answer:

Alex73 [517]3 years ago

5 0

Answer:

b) Land used in your business

Explanation:

For tax purposes the IRS classifies capital assets as those that have a productive life of more than one year and is not normally sold during the course of a business's operations.

Capital assets are a type of production cost, they are used in the production process to generate revenue.

They are expensed over the useful life of the asset in the form of depreciation.

Land is an example of capital assets for the purpose of federal income tax.

It provides the site of production and is not an item that is sold in the short run. Rather it is used over several years.

You might be interested in

uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 un

lina2011 [118]

Answer:

$7,714

Explanation:

The computation of the cost of good sold under LIFO method is shown below

But before that following calculations need to be done

Goods sold = Beginning inventory + Purchases - Ending inventory

= 114 + (399 + 57) - 190

= 380 units

Now 380 units sold would include 57 units of July 22 purchases and balance i.e. (380-57) 323 units of July 7 purchases

So, cost of goods sold

= (57 × 22) + (323 ×20)

= $7,714

7 0

3 years ago

When Jesse was fired, his supervisor told him the reason was that he did not meet performance standards. The supervisor assumed

strojnjashka [21]

Answer:

Jesse had been claimed disc unjustly

Explanation:

because the person is going to fire Jesse

7 0

2 years ago

The Laramie factory runs two departments: the Preparation Department and the Processing Department. The departmental overhead co

Westkost [7]

Answer:

The answer are:

$62.50 per direct labor hour - for preparation department
$33.33 per direct labor hour - for processing department

Explanation:

To calculate the departmental overhead cost per direct labor hour we must divide the total overhead cost over the total amount of direct labor hours.

Preparation department: $25,000 / 400 DLH = $62.50 per DLH

Processing department: $20,000 / 600 DLH = $33.33 per DLH

6 0

3 years ago

What do firms stand to gain by increasing their market power?<br>

balu736 [363]

Increasing market power allows firms to raise prices and not lose customers. This is a way to increase revenues without increasing cost.

8 0

3 years ago

In its ads, listerine claims effectiveness but admits to less than perfect taste. this is an example of a(n): one-sided message.

MAXImum [283]

The correct answer is two-sided message. A two-sided message is defined as a persuasive communication by which it presents two view points and in addition, it presents arguments by means of countering the opposing view. This is also known as a two sided appeal.

8 0

3 years ago