Answer:
The answer is: $2,500
Explanation:
According to the IRS, the cost basis for any asset should be the original cost adjusted by its depreciation.
Since Jack and Diane aren't able to determine the depreciation expenses for the cabinets, they should use their fair market value as cost basis.
Answer:
2.87%.
Explanation:
The total return, also refer to as Nominal return or Money return, is based on the nominal interest rate. For example, let's say that you deposited $100 into a bank account and the bank offers you an annual return of 11%. This 11% is the stated interest rate, it is known as nominal interest rate, and it is rate before taking into account the effect of inflation. When we deduct the effect of inflation from nominal rate, it gives us the real rate. Real rate reflects the Purchasing Power. The Fisher equation will be used to determine the expected inflation rate. The Fisher equation is as follows:
(1 + i ) = (1 + r) * (1 + h)
where
i = Nominal (Money) rate
r = Real rate
h = Inflation rate
Simply adjust the equation to calculate the inflation rate;
⇒ h = [(1 + i) / (1 + r)] - 1
OR h = [(1 + .11) / (1 + .079)] - 1 = 2.87%.
From the above information, it is true that the company is running a budget deficit.
<h3>What is budgeting?</h3>
Budgeting is the process of planning for an allocating resources efficiently and effectively.
A budget deficit is when the expended amount is above the budgeted figure.
Learn more about budgeting:
brainly.com/question/6663636
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Answer:
a. $11,760.
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost of asset = $60,000 + $8,000 + $2,800 = $70,800
($78,800 - $12,000) / 5 = $11,760.
I hope my answer helps you