Answer:
December 31, year 9
Explanation:
Here, we want to state that date that is possible for Milo to acquire qualified replacement property.
In order to avoid being taxed on a gain resulting from an involuntary conversion, the property subject to the conversion must be replaced within a specified time, measured from the end of the calendar year in which the proceeds are received.
Generally, the period is 2 years, but it is 3 years when the involuntary conversion results from government condemnation or eminent domain and is extended to 4 years when the loss is in connection with a declared federal disaster area.
We are told from the question that Milo received the recovery on January 2, Year 5, the property would have to be replaced within 4 years from the end of Year 5 or by December 31, Year 9
Answer:
The manufacturing margin is $460000
Explanation:
Margin is the difference between a company revenue (sales) and the cost of manufacturing. Manufacturing margin is the profit a manufacturer gets from sales of goods or services. Fixed manufacturing costs, variable selling and administrative expenses and Fixed selling and administrative expenses are not used when calculating the manufacturing margin.
Manufacturing margin = Sales - Variable costs of goods sold = $900000 - $440000 = $460000
The manufacturing margin is $460000
He has to pay $175.
500-475 = $25 --> remaining available credit
200-25 = $175 --> what he needs to pay to have enough credit to charge the $200 ticket without going beyond the limit.
Answer:
Depreciation each year is $5,805.56 and Schedule for the depreciation attached with this answer please find it.
Explanation:
Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.
Total Cost = Truck Purchase price and Additions = $35,000 + $26,000 = $61,000
Salvage value = $8,750
Useful life = 9 years
Depreciation = ($61,000 - $8,750) / 9 = $5805.56
We will use the straight line depreciation method.
Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.
Answer:
Line extension
Explanation:
Line extension is the term which occurred when the company or business introduce the extra or the additional items in the category of the same product under the same brand name.
Therefore, it is (line extension) the strategy used by business for developing the individual offerings for appealing to the different segments of the market while the remaining closely related to the product line which is existing.
