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katovenus [111]
3 years ago
15

George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million. Included in the

computation of allocable taxable income were deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?
Business
1 answer:
makkiz [27]3 years ago
5 0

Answer:

The maximum business interest deduction that George will be eligible to claim this year is $522,000

Explanation:

For computing the maximum business interest deduction, first, we have to compute the adjusted taxable income. So, the computation of adjusted taxable income is shown below:

= Allocable taxable income + business interest + depreciation amount

= $1,250,000 + $240,000 + $250,000

= $1,740,000

Now the business interest deduction is 30% of adjusted taxable income

So, the maximum business interest deduction would be

= Adjusted taxable income × deduction rate

= $1,740,000 × 30%

= $522,000

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Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
Jet001 [13]

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

  • Straight-line.
  • Double declining balance.
  • Units of production.
  • Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

6 0
3 years ago
Which of the following statements about renting & owning is correct?
ycow [4]
The answer to the question which of the following statements about renting owning is correct is letter "B" An owner has a complete responsibility and control over the property.

Based on the definition of owner and renter, as well as its comparison, no doubt that the answer is indeed letter "B".
8 0
2 years ago
The assessment ratio isa) The ratio of assessed value to market valueb) The ratio of assessed value to the average value for pro
Ivan

Answer:

The correct answer is option A.

Explanation:

The assessment value can be found by calculating the ratio of assessed value of a property to its market value.

Market value is the rate at which the property can be sold in the open market.

The assessed value is the value given to the property by the assessor's office in order to estimate property taxes.

7 0
3 years ago
As a marketing manager for kitch-it-tools, jim is frustrated with the way his organization markets their kitchen utensils. curre
Leokris [45]

The Kitch it tools is presently practicing mass marketing. Mass marketing is a way of having to produce products or serve their market or business in a wide variety or large scale in which the kitch it tools has the aim of targeting largest possible number of people.

6 0
2 years ago
Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28
Gnom [1K]

Answer:

differential cost of producing product C = $24 per pound

Explanation:

given data

B  currently selling = $30 per pound

produce cost = $28 per pound

C would sell =  $60 per pound

produce additional cost = $24 per pound

to find out

What is the differential cost of producing Product C

solution

we get differential cost of producing product C is express as

differential cost of producing product C = cost of (B+C) - cost of B   .............1

put here value we get

differential cost of producing product C =  (28+24) - 28

differential cost of producing product C = $24 per pound

3 0
2 years ago
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