Answer:
The second year’s depreciation for this equipment using the straight line method is 8,500
Explanation:
Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.
The formula to compute the depreciation under straight lie method is shown below:
= 
= 
= $8,500
The depreciation amount under straight line method should remain same over the estimated useful life
So, the second year’s depreciation for this equipment is $8,500
Answer:
S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.
Explanation:
There are specific pre-requisites before a company may apply as an S corporation
- It implies that corporation shareholders must be U.S. residents only who directly own the shares.
- Maximum 100 shareholders can be part of S corporation.
- The stock options are restricted to one class only.
The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.
Answer and Explanation:
The journal entries are as follows;
a. On Jan 1
No journal entry is required
b. On Feb 5
Contra asset Dr $1,320
To Sales revenue $1,320
(being sales revenue is recorded)
Cost of goods sold Dr $670
To Inventory $670
(being cost of goods sold is recorded)
c. On Feb 25
Cash $3,300
Contra asset Dr $1,320
To Sales revenue $1,980
(being sales revenue is recorded)
Cost of goods sold Dr $300
To Inventory $300
(being cost of goods sold is recorded)
For the answer to the question above, t<span>he acquisition of land by issuing common stock is </span>a noncash transaction that is not reported in the body of a statement of cash flows. So the answer is A.
I hope my answer helped you.
