Answer:
Explanation:
a) The asset is purchased in 2018.
In 2018, bonus depreciation % has been increased from 50% to 100%. If bonus depreciation is elected Orange Corporation can deduct 100% of Purchase cost of $130,000.
The office furniture is classified as seven year class of property for MACRs. If bonus depreciation is elected Orange's deduction is $130,000
= $130,000
b) if Orange decides to use only $52,000 of bonus depreciation, it can claim depreciation (MACRS) on balance amount of acquisition cost.
Cost Recovery for 2018:
Bonus depreciation = $52,000
MACRS Depreciation [($130,000 - $52,000) * 14.29%]= $11,146.20
Hence, Cost Recovery for 2018 = Bonus depreciation + MACRS Depreciation
= $52,000 + $11,146.20
= $63,146 (rounded off to nearest dollar)
If an entrepreneur needs help with valuation, they should turn to online sites like BizBuySell and BizQuest.
<h3 /><h3>How can sites like BigBuySell help entrepreneurs?</h3>
This type of website aims to help entrepreneurs with new business ideas, management tools, and gather opportunities to buy, sell and promote a business.
To be a successful entrepreneur, it is necessary for the individual to have knowledge of the market and the inherent risks, which can be positive, such as opportunities for business expansion, or negative, such as accumulated debt.
Some characteristics of successful and competitive entrepreneurs in the market are:
- Planners
- Communication skills
- Market view
- Innovation
Therefore, persistence and planning is essential when starting a new business, generating creative and innovative solutions that meet the wants and needs of potential consumers.
Find out more about entrepreneurship here:
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The
small investor is the group that are able to day trade and most likely able to invest
across different industries. They also utilize a tax advantages instrument such
as IRA. This also a group that would face less red tape.
It is a way of managing a companies relationship with current and future relationships. Keeping a good name with your customers treating them right, in most business the customer is always right even if they are wrong.
Answer:
a) decrease in equilibrium price and an increase in equilibrium quantity.
Explanation:
As the input cost decreases for the companies the the supply of the goods increases hence the supply curve shifts rightwards.In the curve at the new equilibrium point the equilibrium price decreases and the equilibrium quantity increases.
Think it like if cost of creating anything is decreased for a company then the company will create more products .So there will be more products in the market.So to clear the products in the market the price will be reduced and the quantity of the product is more than before.