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Anastasy [175]
3 years ago
10

The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage value should b

e $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:____________
a) $8,125.00
b) $7,375.00
c) $4,062.50
d) $3,750.00
e) $7,812.50
Business
1 answer:
aniked [119]3 years ago
5 0

Answer:

The correct answer is C that is $4,062.50

Explanation:

The depreciation expense is computed as:

Depreciation expense = Book Value of asset - Salvage Value / Number of years × 6/ 12

where

Book value is $70,000

Salvage value is $5,000

Number of years is 8 because it is Year 3

Number of months is 6 months

= $70,000 - $5,000/ 8 × 6/ 12

= $65,000 / 8 × 6/ 12

= $8,125 × 6/ 12

= $4,062.50

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Ralph Young was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii t
Y_Kistochka [10]

Answer:

The correct answer is option (a) The court probably found that the state law was unconstitutional under the supremacy cause.

Explanation:

Solution

From the given questions it states that, What would be the court's most likely response to Ralph's lawsuit.

The court's decision response would be that, I that when the situation arises or occurs in that case, where there is a conflict which arises between federal and state law then in that case federal law must be applied.

7 0
3 years ago
Isabella files her income tax return 35 days after the due date of the return without obtaining an extension from the IRS. Along
forsale [732]

Answer:

a. Failure to pay penalty = 400

b. Failure to file penalty = $4,000

Explanation:

The monthly rate for failure to pay penalty is 0.5% while the failure to file penalty.

Since it is assumed that there are 30 days in a month, the 35 days after the due date of the return without obtaining an extension from the IRS is will be counted as 2 months regardless of the fact that the second month is just 5 files when she filed.

Therefore, we have:

a. Failure to pay penalty = $40,000 * 0.5% * 2 = 400

b. Failure to file penalty = ($40,000 * 5% * 2) = $4,000

c. Total penalties = (Failure to file penalty - failure to pay penalty for the same period) + Failure to pay penalty = ($4,000 - $400) + $400 = $4,000.

Therefore, the total penalty Isabella will pay is $4,000.

5 0
3 years ago
Waddell Company had the following balances in its accounting records as of December 31, 2015:
Lilit [14]

a. The amount of land on the balance sheet will be $36,000 which is historical cost of the land. Land is not subject to depreciation so it is recorded at historical cost and not carrying value.

b. The amount of rent expense reported on Income statement will be $5,500 [ $ 6,000 * 11 /12 months ]

c. The total amount of liabilities reported on the balance sheet will be $43,800. This includes the contingent liabilities and warranties.

Learn more at brainly.com/question/24540829

8 0
3 years ago
An administrator receives an email message from what appears to be the company bank. the email asks for account information. the
dangina [55]
The security threat detected is fraud
4 0
3 years ago
A proposed new project has projected sales of $159,800, costs of $80,840, and depreciation of $5,640. The tax rate is 24 percent
never [62]

Answer:

Explanation:

In order to calculate the OCF, we first need to calculate net income.

We have:

Sales: $159,800

  • Cost:  -$80,840
  • Depreciation  $5,640

EBT : $73,320

  • Tax = $73,320*24% = $17,596.8

Net income : $55,723.2

Using the most common financial calculation for OCF, we get:

OCF = EBIT + Depreciation - Taxes

OCF = $73,320 + $5,640 - $17,596.8

OCF = $61,363.2

The top-down approach to calculating OCF yields:

OCF = Sales - Costs - Taxes

OCF = $159,800 - $80,840 - $17,596.8

OCF = $61,363.2

The tax-shield approach is:

OCF = (Sales - Costs)(1 - tC) + tCDepreciation

OCF = ($159,800 - $80,840)(1 - 0.24) + 0.24*$5,640

OCF =$61,363.2

And the bottom-up approach is:

OCF = Net income + Depreciation

OCF = $55,723.2 +$5,640

OCF = $61,363.2

Hope it will find you well

3 0
3 years ago
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