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Anika [276]
3 years ago
5

. Doug purchased a new factory building on January 15, 1990, for $400,000. On March 1, 2017, the building was sold. Determine th

e cost recovery deduction for the year of the sale; Doug did not use the MACRS straight-line method.
a. $0
b. $1,587
c. $2,645
d. $12,696
e. None of the above
Business
1 answer:
erma4kov [3.2K]3 years ago
6 0

Answer:

e. None of the above

Explanation:

Purchase Value of Machinery = $4,000,000

Life of building = 30 years

Depreciation per year (assuming no 5% residual value)

= (4,000,000 - 200,000)/30

= $ 126,667

Dep. till December 31, 2016 = 126667*21 years

                                               = $2,660,000

Dep. till March 1, 2017 from December 31, 2016

= (122667*2)/12

= $21,111  

Total Dep. till March 1, 2017 =  $2,660,000 + $21,111

                                              = $ 2,681,111

Cost of recovery deduction = $4,000,000 - $2,681,111

                                              = $ 1,318,889

Therefore, The cost recovery deduction for the year of the sale is $ 1,318,889

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Cost-push inflation will reduce supply and lower real output and employment which will eventually generate an economic _____ qui
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Cost-push inflation will reduce supply and lower real output and employment which will eventually generate an "economic recession".

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The National Bureau of Economic Research (NBER) describes a recession as "a large fall in economic activity distributed across the economy, lasting more than a few months."

Some characteristics of economic recession are-

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Explanation:

Here is the complete question:

Deferral adjustments are needed when the business:

a. pays cash after the expense has been incurred.unchecked

b. pays cash before the expense has been incurred.checked

c. receives cash after the revenue has been generated.unchecked

d. receives cash before the revenue has been generated.

Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.

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