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stich3 [128]
3 years ago
14

The adjusted trial balance for Rowdy Profits Corporation reports that its equipment had cost $240,000. For the current year, the

company has recorded $28,800 of depreciation, which brings the total depreciation to date to $144,000.
Balance Sheet Income Statement
Assets Revenues
Liabilities Expenses
Stockholders’ Equity
Required:

Using the headings shown above, indicate the location and amounts that would be used to report the three items on the company’s balance sheet and income statement. (Any deduction should be entered with a minus sign)
Business
1 answer:
garik1379 [7]3 years ago
6 0

Explanation:

The reporting is shown below:

                                        Income statement

Particulars                  Amount                   Particulars                  Amount          

Depreciation

expense                      $28,800

                                            Balance sheet

Liabilities                    Amount        Assets                     Amount

                                                 Equipment                     $240,000

                                                Less: Accumulated

                                               Depreciation                  -$144,000

                                          Net value of an equipment $96,000

Only these items would be displayed on the income statement and the balance sheet

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Firm ML, a noncorporate taxpayer, exchanged residential rental property for 20 acres of investment land with a $200,000 FMV. ML
wlad13 [49]

Answer:

a. $222,000

b. $22,000

c. $158,000

Explanation:

a. FMV of rental property =  FMV of land received + Received cash

= $200,000 + $22,000

= $222,000

b. FMV of land received       $200,000

Cash boot received                $22,000

Less: Basis of rental property $158,000

Realized gain                           $64,000

Recognized gain (Boot)          $22,000

this transaction qualify for a like-kind exchange under section 1031  When no gain or loss is recognized on an exchange but on Boot received. But recognized gain will be lower of boot amount of realized gain.

c. Carryover basis of original assets =  FMV of rental property - Realized gain

= $222,000 -  $64,000

= $158,000

8 0
3 years ago
The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense
Citrus2011 [14]

Answer:

Accelerated depreciation method

Explanation:

Accelerated method is a depreciation method in which the asset lost its book value at a quicker rate as compared with the straight line method. Under this method, it permit high deduction in the starting years so that the taxable income could be minimized

Therefore according to the given option the first option is correct and the same is to be considered

6 0
2 years ago
Damien McCoy has loaned money to his brother at an interest rate of 5.85 percent. He expects to receive $987, $1,012, $1,062, an
yKpoI14uk [10]

Answer:

The answer is: $3,657

Explanation:

To determine the amount of the loan we have to calculate the present value of the future payments discounting the interest rate of 5.85%.

PV loan =   <u>$987   </u>   +   <u>   $1,012   </u>    +     <u>  $1,062   </u>    +      <u>  $1,162   </u>

                  1.0585         1.0585^2            1.0585^3             1.0585^4

PV loan = $932.45 + 903.23 + 895.47 + 925.64

PV loan = $3,656.80

3 0
3 years ago
Working Capital includes which of the following?
Contact [7]
Owners capital and cash
3 0
3 years ago
By offering more generous unemployment insurance programs, European countries can expect Group of answer choices longer periods
natulia [17]

Answer:

Longer periods of unemployment for their workers.

Explanation:

Unemployment is when people who are willing and able work do not have jobs

Types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

If a government gives generous unemployment insurance programs, there would be less incentive to find jobs because one of the main reasons why people would want to work is to have money. If the government provides generous pay to the unemployed, there would be less motivation to work and unemployment increases

6 0
3 years ago
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