1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
notsponge [240]
4 years ago
6

Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Buildin

g A were acquired from a predecessor corporation. Thompson paid $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400. Land B was acquired on October 2, 2019, in exchange for 2,200 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2019, Thompson paid
Business
1 answer:
frozen [14]4 years ago
7 0

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero  for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

You might be interested in
A manager must ensure fairness and __________ in considering a promotion of an employee.
Evgesh-ka [11]
A promotion is the headway of a worker's rank or position in a hierarchical chain of command framework. Advancement might be a representative's reward for good execution. A manager should ensure nondiscrimination in considering a promotion of an employee. 
6 0
4 years ago
Perez, Inc. owns 80% of Senior, Inc. During Year 1, Perez sold goods with a 40% gross profit to Senior. Senior sold all of these
den301095 [7]

Answer:

B) Sales and cost of goods sold should be reduced by the intercompany sales.

Explanation:

When a parent company consolidates its financial statements with its subsidiaries, it has to eliminate all the transactions involving intercompany sales.

In this case, Perez Inc. must adjust its consolidated financial statements by reducing the sales revenue and COGS of the transaction it made with Senior Inc. (its subsidiary).

4 0
3 years ago
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to
xz_007 [3.2K]

Answer: $8,400

Explanation:

Tax liability for a year is computed on the nominal capital gain as of that year not the inflation-adjusted gain. As such, should the asset be sold today, the capital gains tax of 28% will be computed on the capital gain of $30,000 in the following manner;

= 28% * 30,000

= $8,400

5 0
3 years ago
Teenage entrepreneurship is growing especially in the _____ industry
taurus [48]
Teenage entrepreneurship is growing especially in the health industry and saving the environment.
6 0
3 years ago
Read 2 more answers
The table below shows a summary of Kaitlin's credit card statement for the month of February.
den301095 [7]

Answer:

A) 32 percent interest B) Yes it will be paid

Explanation:

23 times 42 divided by 7

6 0
3 years ago
Other questions:
  • The ultimate source of an organization's culture is Group of answer choices A. Its top management Its environment B. The country
    10·1 answer
  • What best describes the economic interaction between early colonists and native americans?
    6·1 answer
  • Justify the following statement: "Diversity should exist in the workplace."
    11·2 answers
  • Which scenario BEST represents monopolistic competition?
    5·2 answers
  • Shana continues to buy a necessary medicine even though prices for the medicine rise sharply. Shana's behavior shows howa. the p
    7·1 answer
  • Best Birdies produces ornate birdcages. The company's average cost per unit is $22 when it produces 2700 birdcages. If $5700 of
    8·2 answers
  • describe what ETL (Extraction, Transformation, and Load) stands for. Solomon (2015) classified ETL technologies into four catego
    10·1 answer
  • Crane Company required production for June is 112000 units. To make one unit of finished product, three pounds of direct materia
    8·1 answer
  • Dressing a grinding wheel is defined as
    8·1 answer
  • Bald Eagle, Inc., had the following transactions for the year ended December 31, Year 7. Select from the options list provided t
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!