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Brut [27]
3 years ago
9

Deirdre's business purchased two assets during the current year (a full 12-month tax year). Deirdre placed in service computer e

quipment (5-year property) on January 20 with a basis of $15,000 and machinery (7-year property) on September 1 with a basis of $15,000. Calculate the maximum depreciation expense, (ignoring §179 and bonus depreciation). (Use MACRS Half-Year Convention) (Round final answer to the nearest whole number.)
A. $6,000.
B. $5,144.
C. $1,286.
D. $5,786.
E. None of the choices are correct.
Business
1 answer:
nikitadnepr [17]3 years ago
5 0

Answer:

D. $5,786.

Explanation:

The mid-quarter convention applies, so the calculation of property and the machinery is 4 quarter property.

depreciation expense on property = $15000*0.35

                                                          = $2520

depreciation expense on machinery = 15000*0.0357

                                                             = $536

total depreciation expense = $5250 + $536

                                             = $5786

Therefore, The maximum depreciation expense, (ignoring §179 and bonus depreciation). (Use MACRS Half-Year Convention)  is $5786

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The approach that further attempts to model real world uncertainty by analyzing projects the way one might analyze gambling stra
ICE Princess25 [194]

Answer:

The approach that further attempts to model real world uncertainty by analyzing projects the way one might analyze gambling strategies is called  Monte Carlo simulation.

The correct answer is D

Explanation:

Monte Carlo simulation is an idea of taking random samples from a mathematical model that represents a real life situation. It is an approach that attempts to model real world uncertainty into the evaluation of projects.

6 0
3 years ago
Suppose you want to invest $10,000. You have two options: Option #1: Invest in municipal bonds with an expected return of 8.00%,
Katyanochek1 [597]

Answer: 20%

Explanation:

Municipal Bonds are generally not taxed so if you invest in the Municipal bond, the tax rate does not affect you.

The tax rate therefore that will make you indifferent between the 2 options is the one that will take the Corporate bond returns of Jefferson to 8% so that both bonds may give you the same return after tax.

Assuming that tax rate is 'x' then,

8 = 10 (1 - x)

8 = 10 - 10x

10x = 10 - 8

10x = 2

x = 20%

At a tax rate of 20%, the Corporate bonds give an 8% return.

8 0
3 years ago
What is a common axiom for information technology professionals?
beks73 [17]
What is a common axiom for information technology professionals? Know the business. An axiom is a statement that is given to someone or something being established, accepted or knowledge. Those that work in information technology (IT), and really, any field need to know the business to succeed. 
8 0
3 years ago
Match the following statements to the appropriate terms.
ololo11 [35]

Answer:

Matching Statements to Appropriate Terms:

Price-earnings ratio = Profitability Ratio

Return on Assets = Profitability Ratio

Accounts Receivable Turnover = Liquidity Ratio

Earnings per share = Profitability Ratio

Payout ratio = Profitability Ratio

Working capital = Liquidity Ratio

Current ratio = Liquidity Ratio

Debt to Assets = Solvency Ratio

Free Cash Flow = Solvency Ratio

Explanation:

Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.

Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets.  They include the working capital, the current ratio, and the acid-test ratio.

Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.

8 0
3 years ago
This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four di
Alik [6]

Answer:

Unemployment rate= 0.13= 13%

Explanation:

Giving the following information:

Of these 95 individuals, 75 are in the labor force and 65 are employed.

<u>To calculate the unemployment rate, we need to use the following formula:</u>

<u></u>

Unemployment rate= unmeployed population / labor force

Unemployment rate= 10/75

Unemployment rate= 0.13

7 0
4 years ago
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