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77julia77 [94]
3 years ago
12

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

d used the straight-line method for deprecation. Business is booming, so lucky purchased $15000 in equipment during the current year to help meet production demands. Which of the following statements is true regarding the depreciation choices available to lucky.
a. The new machinery can be depreciated using the same method or different method than the previously purchased machinery
b. IF lucky wants to use a different depreciation method, he must recapture depreciation and change the method used on the prior purchase of machinery
c. The new machinery must be depreciated using the same method as the previously purchased machinery
Business
1 answer:
zvonat [6]3 years ago
5 0

Answer:The new machinery must be depreciated using the same method as the previously purchased Machinery.

Explanation:

This is in line with the consistent concept which states a company must be consistent in the application of accounting principles to his activities.

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3 years ago
Read 2 more answers
Quick Burger is preparing a training program to teach employees how to operate its new coffee-making system. When the training i
VashaNatasha [74]

Answer:

Assessment

Explanation:

Assessment is the most effective way to check the employee performance whether they are eligible for the process or not. It can be done only after the training program.

Therefore as per the given situation Quick Burger conduct the training program for employees that how to operate the new coffee-making system. So, after the training program Quick burger do the assessment to check the employee skills.

5 0
4 years ago
A disadvantage of the corporate form of business ownership is that:
Roman55 [17]

Answer:

b) most shareholders have little direct control over how the company is managed.

4 0
3 years ago
Mr. Slake sold 1,580 shares of publicly traded DDL stock (tax basis $49,240) for $40,000 cash on February 13. He paid $43,000 ca
garik1379 [7]

Answer:

$9,240 loss recognized

$43,000 basis

Explanation:

Tax basis of share purchase is the cost of share together with any tax related to this purchase.

Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share =  $49,240 - $40,000 = $9,240

His tax basis in purchase of 1,600 shares on Mar 2 is  $43,000, the total cost he paid to acquire 1,600 shares

5 0
4 years ago
Curtis purchased stock with an initial share price of $140, and sold it when the share price was $119. While he owned the stock,
Ira Lisetskai [31]

Answer:

Curtis

The total percentage return on the investment is:

= -7.86%.

Explanation:

a) Data and Calculations:

Initial share price at which the stock was purchased = $140

The selling share price = $119

Dividends earned during the stock ownership (holding period) = $10

Total returns, including proceeds from the sales = $129 ($119 + $10)

Total returns from holding the stock until sold

= Total returns + sales proceeds minus Initial purchase cost

= -$11 ($129 - $140)

Total percentage return on the investment = $11/$140 * 100

= 7.857

= 7.86%

6 0
3 years ago
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