Answer: Straight line method of depreciation
Explanation: Under the straight line method of depreciation the asset is expensed over its useful life. In this method, depreciation or amortization is calculated by dividing the difference of initial cost and salvage value of the asset from its useful number of years.
This method is not commonly used for assets having longer term period but still some business entities use it as it is easy to calculate.
It should be noted that the condition where he'll get a pass-through deduction is that he has a taxable income.
A pass-through deduction refers to a business that isn't subject to corporate income tax. Rather, such a business is taxed at individual income tax rates.
From the information given, the condition where Arthur will get a pass-through deduction is that he has a taxable income. Also, the deduction cannot be more than 20% of the taxable income.
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Answer:
$4,600 debit balance
Explanation:
Provided that
The account receivable balance = $5,000
The amount received from its charge-account customer = $400
So after posting this transaction, the new balance in the account receivable account is
= The account receivable balance - The amount received from its charge-account customer
= $5,000 - $400
= $4,600 debit balance