1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex_Xolod [135]
3 years ago
13

An asset (not an automobile) placed in service in June 2018 has a depreciable basis of $2,555,000, a recovery period of 5 years,

and is the only asset placed in service during the year. Assuming bonus depreciation is not used, a half-year convention, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2018 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?
Business
1 answer:
yuradex [85]3 years ago
4 0

Answer:

The amount allowed in the year 2018 = $298,083

Explanation:

Provided information,

Asset value = $2,555,000

Life of asset = 5 years

Salvage value =  $0

Since depreciation is not to be charged on bonus basis, the depreciation for each year = $2,555,000/5 = $511,000

Since the asset is put to use in June, the amount to be deducted will be for 7 months June to December.

= 511,000 \times \frac{7}{12} = 298,083

Thus the amount allowed in the year 2018 = $298,083

You might be interested in
Jim transfers money from his money market account to his savings account. This action:________.
Verizon [17]

Answer:

a.reduced MI and increases M2

Explanation:

Hope that help you!!

4 0
3 years ago
As you start consuming potato chips, your marginal utility is very high, but begins to fall slowly until you've eaten 10 chips.
avanturin [10]

Answer:

The law of diminishing marginal utility.

Explanation:

Marginal utility is basically satisfaction derived from consuming an extra unit of product. According to the law of diminishing marginal utility as consumption increases the marginal utility derived from each additional unit decreases.

So when we consume 1 chips marginal utility is high, then as more is consumed we still get some positive utility out of it but at a decreasing rate now. At some point this utility equals zero after which it starts declining as more chips are consumed because it is not providing any satisfaction now. Therefore the chips should be consumed only up to the point where the marginal utility equal zero.

7 0
3 years ago
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that complet
Black_prince [1.1K]

Answer:

B) The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.

Explanation:

As explained in the question, the stock market consensus has been that even after the new drug was released, the stock price, and the earnings per share of the pharmaceutical company will remain the same, therefore, there will no volatility.

3 0
3 years ago
If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that
mote1985 [20]

Answer:

e. consumer spending will increase.

Explanation:

If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that  consumer spending will increase because, unless in the event that the increase will be funded by borrowing from the private sector which will cause a crowding out effect, The increased spending by congress (government) will create a multiplier effect by causing job creation for the unemployed, which will imply that people will have more income to spend leading to rise in aggregate demand or consumer spending.

Furthermore, the fact that there will be no increase in taxes implies that consumers will have a higher disposable income for consumption purposes leading to a rise in consumer spending

3 0
3 years ago
Your business plans to market its all-natural ingredient dog food to a foreign country. The shelf life of the product is a short
lesantik [10]

Answer: A. STORAGE FACILITIES

Explanation: STORAGE FACILITIES are structures or systems put in place to Prevent the quick spoilage of a given product. Storage facilities are required for products that can easily deteriorate. With proper storage facilities or System the shelf life of the product can be Extended.

Businesses planning to market Al NATURAL PRODUCTS MUST INVEST IN STORAGE FACILITIES AS NATURAL PRODUCTS DETERIORATE EASILY IF NOT STORED PROPERLY. The storage facility can be in the form of COLD ROOMS for frozen Products or COOL DRY ENVIRONMENT for most processed foods etc.

3 0
3 years ago
Other questions:
  • Can someone please help
    10·1 answer
  • Assume the following: Payment #1 totals $1,600 ($1,200 principal and $400 interest expense); Payment #2 totals $1,600 ($1,300 pr
    12·1 answer
  • Which of the following would most likely increase the net profit margin ratio? A. An increase in the unit selling price.B. A dec
    8·1 answer
  • Read the example and determine whether it is a decisional, interpersonal, or informational role.
    5·1 answer
  • Wen's Noodles wants to increase the quantity of noodles that it sells by 20 percent. The price elasticity of demand for noodles
    10·1 answer
  • It is the year 2060, and you are talking (or perhaps telepathically communicating) with your grandchildren. "Grandparental Unit"
    5·1 answer
  • Information and communication technologies are developing at a very fast rate. How have these technologies affected globalizatio
    10·1 answer
  • Did you know that you can save 15 or more on car insurance by switching to geico?? <br> ;o
    5·2 answers
  • The cost of the business process is the sum of the cost of the inputs and the ________.
    9·1 answer
  • The economic growth demonstrated by this recruitment letter was primarily a result of —.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!