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3 years ago

Which of the following assets held by a manufacturing business is a §1231 asset?

Business

1 answer:

insens350 [35]3 years ago

6 0

Answer:

A factory building used in the business and held more than one year.

Explanation:

<u>According to Section 1231</u>. property are assets that are used in your trade or business and are held by the Taxpayer for more than one year.

The factory building has serve the purpose of the section. It is used for a trade and has been held by the taxpayer for more than a year, hence, the property can be termed an assets by a manufacturing business

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A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage

Mandarinka [93]

The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

<h3>What is depreciation expense?</h3>

Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).

The straight-line technique of calculating depreciation expense is given below:

= (Original cost - salvage value) ÷ (useful life)
= ($173,000 - $8,600) ÷ (10 years)
= ($164,400,000) ÷ (10 years)
= $16,440

In this method, the depreciation is the same for all the remaining useful life.

Now for the 7 months, the depreciation expense would be:

= $16,440 × 7 months÷ 12 months
= $9,590

Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

Know more about depreciation expenses here:

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The correct question is given below:

A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.

(A) $16440.

(B)$9590.

(C)$8220.

(D)$6850.

7 0

2 years ago

The following table shows data for nominal GDP and the GDP deflator (2010 = 100) in 2013 and 2014 for six major industrial count

dolphi86 [110]

1. United States : 2013 real GDP 15,779.54, 2014 : 16,152.7

2. Canada : 2013 real GDP 1,738.66, 2014 : 1,781.96

3. Japan : 2013 real GDP 464,321.4, 2014 : 495,576.9

4. Italy: 2013 real GDP 1,549.08, 2014 : 1,539.33

5. Australia : 2013 real GDP : 1,473.74, 2014: 1,512.09

6. United Kingdom : 2013 real GDP : 1,642.37, 2014: 1,690.09

Inflation rate:

1. United States: 1.7%

2. Canada: 2.6%

3. Japan: 1.6%

4. italy: 1.0%

5. Australia: 0.28 %

6. United Kingdom: 1.62 %

5 0

3 years ago

Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Costs Cost Driver Machine

Norma-Jean [14]

Explanation:

The identification of the cost driver is presented below:

This identification is required so that the indirect cost can be allocated according to the each cost pool

Machine setup, indirect materials = Number of setups

Inspections = Number of inspections

Test = Number of test

Insurance, plant = Machine hours or square feet

Engineering design = Engineering Hours

Depreciation, machinery = Machine hours

Machine setup, indirect labor = Number of setups

Property taxes = Machine hours or square feet

Oil, heating = Machine hours or square feet

Electricity, plant lighting = Machine hours or square feet

Engineering prototypes = Engineering Hours

Depreciation, plant = Machine hours or square feet

Electricity, machinery = Machine hours

Machine maintenance wages = Number of machines or machine hours

7 0

3 years ago

Consider a town in which only two residents, Kevin and Maria, own wells that produce water safe for drinking. Kevin and Maria ca

jarptica [38.1K]

Answer:

Monopolist profit maximizing price

A: $3 per gallon , total output =270 Kelvins profit = $810(801/7/2 = $405

Maria's profit = $405

B. $2.5 per gallon . Kelvin's profit =$450 Maria's profit = 337.5

C = False. At the same quantity , fall in price brings fall in revenue

Cournot Nash equilibrium

Explanation:

In a monopolist market system , price are set higher than the marginal cost as the producer enjoy the dominance of the market through the production of a unique good.

At the price of $3 , change in demand =(270-225) =45 , change in revenue = ($810-$787.50)22.5 and marginal revenue = (45/22,5) = 0.5. That forms the maximizing price for a monopolist.

On the new arrangement , price drops to $2.5 , Maria's profit =(315-45/2)2.5 = $337.5 and Kelvin's = ($787.5-337.5) = $450

Cournot Nash equilibrium is business model that explains the competition among rival companies producing similar product on the level of output produced independently.

6 0

3 years ago

Larry Bar opened a frame shop and completed these transactions:1. Larry started the shop by investing $40,800 cash and equipment

natita [175]

Answer:

$44,100

Explanation:

Larry Bar

Investment in Cash - Receptionist's salary+Sales of custom frame = Cash account balance

Investment in Cash $40,800

Paid $2,000 Receptionist's salary $2,000

Sales of custom frame $5,300

Hence:

$40,800-$2,000+$5,300

=$44,100

Cash account balance will be $44,100

6 0

3 years ago