Answer:
$709,100
Explanation:
Cost of the building = $30150000
Average accumulated expenditures = $12500000
Actual interest = $1230000
Avoidable interest = $604000
Salvage value = $2390000
Useful life = 40 years
Depreciation expense for the first full year:
= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life
= [($30150000 + $604000) - $2390000] / 40
= [$30754000 - $2390000] / 40
= $28364000 / 40
= $709,100
So, the depreciation expense for the first full year using the straight-line method is $709,100.
Answer:
The correct answer is letter "D": Limited liability company.
Explanation:
Limited Liability Companies or LLCs are entities where the owners are not personally liable for the debt of the company. Owners are taxed on the company's profits when they receive them only and they are not subject to file an individual tax return for it.
In case the company decides to become public, several standards must be met according to the <em>Securities and Exchange Commission</em> (SEC) for the firm to issue shares of stock or another type of investment vehicle.
Answer and Explanation:
According to the given situation, the Journal entry is shown below:-
On September 9
Account receivable Dr $5,800
To Allowance for doubtful debts $5,800
(Being written off amount is recorded)
Here we debited the account receivable as it increased the assets and credited the allowance as it decreased the assets
On September 9
Cash Dr, $5,800
To Accounts receivable $5,800
(Being cash collection is recorded)
Here we debited the cash as it increased the assets and we credited the accounts receivable as it decreased the assets
