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3 years ago

What are the criteria for distinguishing between a deductible expense and a capital expenditure?

1 answer:

6 0

The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.

If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.

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The partners in the biz partnership have agreed that partner mandy may sell her $100,000 equity in the partnership to brittney,

Ivahew [28]

Answer:

Mandy Capital A/c Dr. $100,000

Brittney Capital A/c Cr. $100,000

Explanation:

Mandy selling $100,000 shares of assets, so we will report the transaction on the sale of stock by the amount of equity sold. Now, all parties will negotiate the price that one can sell to another for this equity valuation, which would be $85,000 in this case.

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2 years ago

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly

Harman [31]

C. Product line extension.

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2 years ago

Smith's electronics originally priced a private-label portable dvd player at $90, and then sold 1,500 units per week. after rais

Mariana [72]

The answer i would say would be $75

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3 years ago

The _____ takes into consideration both the direct and indirect global warming effects of refrigerants.

dusya [7]

<span>The total equivalent warming impact (TEWI) takes into consideration both the direct and indirect global warming effects of refrigerants. In addition to the direct impact of the refrigerant (which is conveniently estimated by GWP), any system or process, which requires energy input, indirectly affects the environment. This impact is originated from CO2 emissions from the energy production processes. TEWI can be calculated using the equation below: TEWI = direct emissions + indirect emissions = (GWPĂ—LĂ—N)+(EaĂ—Î˛Ă—n), where L â€“ annual leakage rate in the system, kg (3% of refrigerant charge annually), N â€“ life of the system, years (15 years), n â€“ system running time, years (based on weather data, 4910 hours), Ea â€“ energy consumption, kWh per year (modelled for each refrigerant), Î˛ â€“ carbon dioxide emission factor, CO2-eq. emissions per kWh (165 g CO2/kWh).</span>

6 0

3 years ago

Service Department Cost Activity Base for Allocation Graphics Production $200,000 number of copies Accounting 500,000 number of

Mandarinka [93]

Answer:

$350,000

Explanation:

Production = $200,000 number of copies

Accounting = $500,000 number of invoices processed

Personnel Department = $400,000 number of employees

These are all service cost

Total number of copies = 20,000 + 30,000 + 50,000 = 100,000

Total number of invoices processed = 700 + 800 + 500 = 2,000

Total number of employees = 130 + 145 + 125 = 400

Rate per service shall be as follows:

Production = $200,000/100,000 = $2 per copy

Cost of Super Division = $2 $\tiimes$ 50,000 = $100,000

Accounting = $500,000/2,000 = $250 per invoice

Cost of Super Division = $250 $\tiimes$ 500 = $125,000

Personnel Department = $400,000/400 = $1,000 per employee

Cost of Personnel Department = $1,000 $\tiimes$ 125 = $125,000

Total service cost of Super Department = $100,000 + $125,000 + $125,000

= $350,000

8 0

2 years ago