Answer:
Annual depreaciation 2020= $2,400
Explanation:
Giving the following information:
Purchase price= $12,000
Salvage value= $2,000
Useful life= 5 years
<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Annual depreaciation= 2*[(12,000 - 2,000) / 5]
Annual depreaciation= 4,000
2020:
Annual depreaciation= 2*[(10,000 - 4,000) / 5]
Annual depreaciation= $2,400
Answer:
<u>December 31, 2018</u>
Debit : Dividend $40,000
Credit : Shareholders for dividends $40,000
Explanation:
When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.
Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :
Dividend = 100,000 x $2.00 x $0.20 = $40,000
Answer:
Option C, Double taxation on profits and individuals
Explanation:
The disadvantages of the corporation form of ownership are as follows -
a) It takes lot of time and hence is time consuming
b) The taxation gets double
c) Also, the formalities/protocols are very tough
Hence, the option C is correct
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I don't really understand the question.. Sorry if this doesn't help!
-EmojiQueen