Improperly capitalizing a repair and maintenance expense item as a fixed asset will result in an <u>overstatement of profit in the current year and an understatement in future years</u>.
Fixed assets seek advice from long-term tangible assets which can be used inside the operations of an enterprise. They offer long-term monetary advantages, have a useful existence of a couple of yr, and are labeled as assets, plants, and equipment on the balance sheet.
Fixed assets, additionally called lengthy-lived assets or property, plant, and the system is a term utilized in accounting for assets and belongings that can't effortlessly be transformed into cash. Fixed assets are unique from the contemporary property, which includes coins or bank accounts because the latter are liquid property.
Fixed assets are capitalized. It really is due to the fact the advantage of the asset extends past the year of buy, not like different costs, which might be length expenses benefitting handiest the duration incurred. constant assets should be recorded at a price of the acquisition
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Answer:
Capital gain tax = $1,540.
Explanation:
As per the data given in the question,
For stocks of A
Profit = (selling price - purchasing price) × units
= ($19 - $23) × 200
= -$800
For stocks of B
Profit = ($57-$41) × 600
= $9,600
Total profit = profit for stock A + profit for stock B
= -$800 + $9,600
= $8,800
Therefore, capital gain for both year = $8,800
Tax rate = 35%
Capital gain tax = Capital gain × Tax rate
= $8,800 × 35%
=$3,080
As share holds for more than a year,
So, Capital gain tax = $3,080 ÷ 2 = $1,540.
Answer:
A. Actual Sales - Break-even sales
Explanation:
In business studies, Margin of safety (MOS) is the difference between actual/projected/budgeted sales and the level of break even sales. It is calculated by subtracting break even sales from projected or budgeted sales.
It is usually calculated by a company to know the level of percentage by which sales can drop in that company, before they start incurring losses. IT IS A MEASURE OF BUSINESS RISK.
Answer:
The correct answer is letter "B": magnitude of the response in quantity demanded to a change in price.
Explanation:
Price elasticity of demand is the measure of how quantity demanded for a good or service changes as a result of changes in price. <em>Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price</em>. If the result is equal or greater than one (1) the good or service is elastic. If the result is lower than one (1), the product is inelastic.
Answer:
Note: The full question is attached as picture below
(a) (b) (c)
In Larger
Balance Difference column
1. No $725 Debit
2. Yes NA NA
3. Yes NA NA
4. No $225 Credit
5. Yes $684 NA
6. No $45 Credit
