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Sedaia [141]
2 years ago
13

1. Sid bought a new $1,500,000 seven-year class asset on August 2, 2020. On December 2, 2020, he purchased $900,000 of used five

-year class assets. If Sid elects Sec. 179 and does not take additional first-year depreciation, what is the maximum cost recovery deduction for these purchases for 2020
Business
1 answer:
egoroff_w [7]2 years ago
7 0

Answer:

Total cost recovery deduction = 1251450

Explanation:

Given the seven-year class asset bought by the Sid = $1500000

On 2nd December the five-year class asset bought = $900000

Now we have to find the cost recovery deduction for 2020.

900000/(900000 + 1500000) = 37.5% Thus, use half-year convention and avoid mid quarter

1500000 – 1,000,000 (Sec 179 limit) = 500000

500000 x 14.29% = 71450

900,000 x 20% = 180,000

1,000,000 + 71450 + 180,000

Cost recovery for 7 year asset = 1,071450

Cost recovery 5  year asset = 180000

Total cost recovery deduction = 1251450

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Yo<br>please solve this journal entries <br> as soon as possible ​
Elodia [21]

Answer:

1. Drawings A/c. dr. 15,000

To Cash A/c. 15,000

2. Cash A/c. Dr. 63,000

To Sales A/c. 63,000

3. Drawings A/c. Dr. 12,000

To Cash A/c. 12,000

4. Purchases A/c. Dr. 31,000

To Creditors A/c. 31,000

5. Drawings A/c. Dr. 16,000

To Purchases A/c. 16,000

6. Dalip Singh A/c. Dr.35,000

To Sales A/c. 35,000

7. Rent A/c. Dr. 22,000

To Bank A/c. 22,000

8. Purchases A/c. Dr. 19,000

To Cash A/c. 19,000

4 0
2 years ago
In preparing its cash flow statement for the year ended December 31, 2021, Green Co. gathered the following data: Gain on sale o
vazorg [7]

Answer:

$77,000

Explanation:

Data provided as per the question below:-

Proceeds from sale of common stock = $153,000

Cash dividends paid = $76,000

The computation of net cash from financing activities is given below:-

Cash inflow from Financing Activities =  Proceeds from sale of common stock - Cash dividends paid

= $153,000 - $76,000

= $77,000

Therefore for computing the net cash from financing activities we simply applied the above formula.

5 0
2 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00
romanna [79]

Answer:

The correct answer to the following question will be "$76,986".

Explanation:

Although the organization is reportedly going to pay $14.00 per unit, even before manufactured throughout the corporation, cost and save per unit will become the variation among current value as well as production costs without set rate. The cost of operating expenses will not be included to measure the gain because the idle resources of the company would be included and would not raise the fixed costs.

Therefore the cost differential would be as follows:

⇒ Differential \ cost = (Current \ purchasing \ price-Manufacturing \ cost \ excluding  \ fixed \ cost)\times 38,493On putting the values in the above formula, we get

⇒                        =(14-12)\times 38,493

⇒                        =2\times 38,493

⇒                        =76,986

5 0
3 years ago
Several years ago MMM Company borrowed money through a bond issue with the following features. Each individual bond has a $1,000
Fynjy0 [20]

Answer:

$1040.56

Explanation:

A bond is debt instrument issued by a borrower which promises to pay the holder regular interest for the holding period and the terminal value at the end of the period.

According to the discounted cash flow model, the value of an asset is the present value of the future cash flows arising from the assets discounted at the required rate of return.

Present value is the worth today of an amount expected in the future.The process of calculating the present value is called discounting

To calculate the price of this bond, we shall discount the future cash flows using the required return of 8% per annum, which is the same as 4% per six-month

Interest payment per 6 month = (9% × $1000)/2= $45

PV of interest payment =  45 × (1-  (1.04)^(-2×5))/0.04)= 364.995

PV of redemption value = 1000 ×  1.04^(-2× 5) =               <u>675.56</u>

Price of the bond                                                               1<u>040.56</u>

6 0
3 years ago
If real GDP per person were equal to $2,620 in 1900 and grew at a 3 percent annual rate, what would be the value of real GDP per
gavmur [86]

If real GDP was 2630 and grew annually at 3%, The value of real GDP ten years later is going to be $67670

<h3>How to solve for real GDP </h3>

We have to start by starting the formula A = P(1+r)^n

We have P = principal = 2620

We have r as the rate of interest = 3% = 0.03

We have the number of years n = 110

We have to put these values in the formula we have

A= 2620(1+0.03)^110

= 67669.9

This is approximated to be

= 67670

Read more on Real GDP here:

brainly.com/question/17110800

#SPJ1

5 0
1 year ago
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