Answer:
The correct answer is A114,000
Explanation:
9,000×$100=900,000
900,000×7%=63,000
$240,000- (63,000×2) = $114,000
Answer:
Only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.
Explanation:
Modified Accelerated Cost Recovery System (MACRS) refers to the US depreciation system under which there is a specific asset group with designated period of depreciation into which fixed assets are placed.
There is a depreciation table for all classes of assets which has been published by the Internal Revenue Service and MACRS seven-year property is one of these classes.
MACRS seven-year property implies that each of the assets under this class has seven years useful life, and assets under this class are office furniture and fixtures, agricultural machinery and equipment, natural gas gathering lines, and any asset not assigned to another class.
From the above therefore, only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.
Answer: decrease retained earnings $1.60 million and increase liabilities by $1.60 million.
Explanation:
The dividend on common shares will be:
=2,000,000 × $0.80
=$1,600,000
Then, the journal entry will be:
Debit: Retained earnings $1.6 million
Credit: Dividend payable $1.6 million
The answer will be to decrease retained earnings $1.60 million and then increase liabilities by $1.60 million.
It’s asking whatever the market would pay.