Answer: $8025
Explanation:
From the information given, first and foremost, we need to realise that only the building in this case will be depreciated due to the fact that land is considered to be a non depreciable asset.
Therefore, the MACRS depreciation charge for year 1 will then be:
= MACRS rate × Value of Building
= 1.605% × $500,000
= 0.01605 × $500,000
= $8025
Answer:
total estimated cash collections = $300,050
Explanation:
estimated collections during June:
collections of credit sales from May = $257,000 x 65% = $167,050
collections from credit sales before May = $50,000
collections from credit sales during June = $332,000 x 25% = $83,000
total estimated cash collections = $300,050
the write offs and the bad debt provisions are not included in this calculation.
Answer:
Gain/loss= $1,000 loss
Explanation:
Giving the following information:
Original price= $54,000
Accumulated depreciation= $28,000
Seling price= $25,000
The gain or loss from selling an asset depends on the book value.
Book value= original price - accumulated depreciation
Book value= 54,000 - 28,000= 26,000
If the selling price is higher than the book value, the company gain from the sale.
Gain/loss= 25,000 - 26,000= $1,000 loss
Answer:
The correct answer is option (a).
Explanation:
According to the scenario, computation of the given data are as follows:
Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.
Here, both accounts are or balance sheet items.
So, it will not affect any expenses account.
