it's half a year out of 5, so 1/10 of the useful lifetime of the van
$61,000 - $4,900 is $56.1000
one tenth of that will be what we are looking for, so option b. should be just right to fit here
Answer: Option A is the right answer
Explanation: Evidences in most cases has shown that MACRS is all about applying convention for one and a half year on assets. So when an entities owns 35-40% of an asset in forth quarter, Mid quarter convention will be applied for only one half of the last quarter, logically one and half month in the last quarter.
Answer: C. use 0.8 fewer units of capital.
Explanation:
The Marginal Rate of Technical Substitution (MRTS) shows how much you can decrease capital or labor by in order to keep production constant if you increase either capital or labor.
It is calculated by the formula:
= Marginal product of labor / Marginal product of capital
= 4 / 5
= 0.8
<em>The firm should use 0.8 fewer units of capital in order to maintain the same production level. </em>
Answer:
The amount of interest which can be deducted in one year is limited to the net investment income of a taxpayer for that year.
Explanation:
This amount can not be exceeded. Investment income according to the IRS includes:... It does not include eligible dividends or net capital gains other than those that you want to include.
Limitations on investment interest Not all interest that you pay on investment loans are allowed to be deducted. For particular, the IRS forbids registration of certain forms of investment value, including:
1. Home mortgage interest eligible.
2. Value to raise tax-exempt revenue, as if the municipal tax-free bond is to be bought on a margin.
3. Option straddles, which are not available to most investors as an advanced investment strategy.
4.Interest in any passive operation when measuring profit or loss
