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aivan3 [116]
3 years ago
5

A piece of equipment (Asset class 15.0) was purchased bythe Jones Construction Company. The cost basis was $300,000. Determineth

e ADS and GDS depreciation deductionfor this property each year
Business
1 answer:
aliya0001 [1]3 years ago
5 0

Answer:

Alternative depreciation system (ADS depreciation) per year:

Year                     %                     depreciation expense

1                           8.32%              $24,960

2                          16.67%             $50,010

3                          16.67%             $50,010

4                          16.67%             $50,010

5                          16.67%             $50,010

6                          16.67%             $50,010

7                           8.33%             $24,990

General depreciation system (GDS depreciation) or MACRS per year:

Year                     %                     depreciation expense

1                            20%                $60,000

2                           32%                $96,000

3                           19.20%            $57,600

4                           11.52%             $34,560

5                           11.52%             $34,560

6                           5.76%              $17,280

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Answer:

d. 301,000

Explanation:

Given that the cost per textbook is $27, we know that the addition of variable and fixed Cost gives total cost.

We will multiply variable cost per textbook of $20 with current volume of book sold per year 43,000, which gives a total variable cost of $860,000.

Also, total cost would be 43,000 multiplied with $27 , which is $1,161,000 minus the total variable cost of $860,000 equals $301,000 which is the associated fixed cost.

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2 years ago
Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500. Given this information, we kno
sdas [7]

Answer:

the marginal propensity to consume is 0.75

Explanation:

The computation of the marginal propensity to consume is shown below:

MPC = Change in consumption ÷Change in disposable income

where,

The Change  in consumption is 1500

ANd, the Change in disposable income is 2000

So,

MPC is

= $1,500 ÷ $2,000

= 0.75

hence, the marginal propensity to consume is 0.75

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3 years ago
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Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes
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Answer:

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Noelle is someone that is an average performer, so she will be open to doing mundane tasks since she is not overly worried about having a star performance.

She is also some one that spends more time than she should socializing with friends in other departments.

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Risk of an investment asset that can not be minimized or removed by inserting that asset is considered a non-diversifiable risk to a diversified investment portfolio.

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