The answer is A
A.Fritz describes what the problem is and what the new behavior should be (Apex)
Answer:
$8,000
Explanation:
Data provided in the question:
Average cost of car = $25,000
Now,
Using the class recovery system of five years,
The rate of depreciation expense in year 2 of the MACRS is 32%
Therefore,
The depreciation expense in the year 2 will be
= Average cost of car × Rate of depreciation
= $25,000 × 32%
or
The depreciation expense in the year 2 = $8,000
Answer:
$31000 will be allowed as expenditure
Explanation:
given data
Wheelchair = $10,000
Whirlpool bath = $10,000
Maintenance = $1,000
Increased utility bills = $1,000
various home modifications = $10,000
solution
as here value of the home increased = $1000
and that is increaed utility bill of the whirlpool
so that expenditure will be added to value of asset
so
total expenditure is = $10000 + $10000 + $10000 + $1000 = $31000
so $31000 will be allowed as expenditure
Answer:
Cost of land = $220,400
Cost of building = $0
Explanation:
The computation of the land and the cost of the new building is shown below:
Cost of land = Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $194,000 + $16,900 + $2,700 + $3,900 + $2,900
= $220,400
The cost of the new building would be zero as all the costs are allocated to the cost of the land. So, no cost is allocated to the cost of the new building
A related party transaction
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