Who is primarily responsible for determining the market value of the home you’re wanting to buy

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction,

leonid [27]

Answer:

Explanation:

Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2

3 0

3 years ago

The sale of an intangible asset for cash is classified in the statement of cash flows as a(n):________

Cloud [144]

The sale of an intangible asset for cash is classified in the statement of cash flows as a(n) Investing activity.

An asset that is not physical in nature is said to be intangible. Intangible assets include goodwill, brand awareness, and intellectual property like patents, trademarks, and copyrights. Contrasting with tangible assets like real estate, automobiles, machinery, and stock are intangible assets.

Furthermore, financial assets that get their value from contractual claims, such as stocks and bonds, are regarded as tangible assets.

An asset that is not physical in nature, such as a patent, brand, trademark, or copyright, is referred to as an intangible asset.

Intangible assets can be produced or purchased by businesses.

An intangible asset may be seen as definite or indefinite, such as a contract or legal arrangement (for example, a brand name).

A company's intangible assets do not appear on the balance sheet and do not have a documented book value.

Learn more about intangible asset here:

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3 0

2 years ago

The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a

agasfer [191]

Answer:

The answer is: Yes, an exchange was made.

Explanation:

In marketing, an exchange happens every time two or more entities (people. organizations or businesses) trade products or services. Each trade should result in a utility created for each party involved. In other words, what you get in exchange is worth more (at least for you) than what you give.

In Amanda's case, an exchange is made because she donated blood and received a feeling of satisfaction and happiness in exchange.

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3 years ago

I get $200 revenue from the sale of my product each day. I rent the factory that I use for $90 a day. The raw materials of the o

igor_vitrenko [27]

Answer:

Accounting loss of $5

Economic loss of $35

Explanation:

Accounting profit is the net of revenue and Explicit cost. Explicit costs are the cost which actually incurred or paid.

On the other hand the economic profit is the net of revenue, Explicit and Implicit costs. Implicit value is the opportunity costs of choosing the alternative.

Implicit cost = $30

Explicit cost = 90 + 115 = $205

Accounting Profit = Revenue - Explicit costs = $200 - $205 = ($5)

Economic Profit = Revenue - Explicit cost - Implicit cost = $200 - $205 - $30

Economic Profit = ($35)

7 0

3 years ago

What are gestures, signs, or words used to communicate known as?

natulia [17]

Answer:

a symbols

Explanation:

Communication is preeminently symbolic. There are two major categories of signals people send: signs and symbols. Signs are the foundation of all communication. A sign designates something other than itself, and meaning is the link between an object or idea and a sign

7 0

3 years ago

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