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elena-14-01-66 [18.8K]
3 years ago
10

Steve Corp bought a $600,000 apartment building in June of 2014. Of the purchase price, $104,950 is allocated to the value of th

e land. What is the maximum amount of depreciation that the company can claim in 2015 (year 2) for the building?
Business
1 answer:
blsea [12.9K]3 years ago
7 0

Answer:

$18,000

Explanation:

According to the Internal revenue service, the useful life of the rental property would be 27.50 years.

The computation of the maximum amount of depreciation is shown below:

= (Purchase cost of building - allocated value of land - salvage value) ÷ useful life

= ($600,000 - $104,950 - $0) ÷ 27.50 years

= $495,050 ÷ 27.50 years

= $18,000

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In Spring 2018, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city
marta [7]

Answer:

By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

Explanation:

Percentage-of-completion method : Under this method,

First we have to calculate the percentage which is based on current period cost to total period cost.

After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.

In mathematically,

Estimated Cost percentage =  current period cost ÷ total period cost

                                              = $48 million ÷ $120 million

                                              = 40%

Now,

Revenue recognized = Estimated cost percentage × Revenue

                                   = 40% × $160 million

                                   = $64 million

Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

7 0
3 years ago
The company Andorinha Ltda. presented on 03/15/01 the total amount of R$1,500.00 in the account of Duplicates Payable; soon, on
DerKrebs [107]

Answer:

a) Credit Balance R$1,000.00

Explanation:

The Duplicates Payable represents a Liability in Andorinha Ltd records.

When Andorinha Ltda paid a cash duplicate in the amount of R$500.000 the entries recorded will be :

Trade Payable-Duplicates R$500.000 (debit)

Cash R$500.000 (credit)

<em>Effect on Balance of Duplicates Payable</em>

Decrease in Duplicates Payable by $500,000

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8 0
3 years ago
Levi's Levees always evaluates projects using the payback method. What is the payback period for the following set of cash flows
Ray Of Light [21]

Answer:

3.14 years

Explanation:

Year              Cash flow                Accumulated cash flows

0                    -$4,900                            -$4,900

1                       $1,150                             -$3,750

2                      $1,350                            -$2,400  

3                     $2,230                                -$170

4                     $1,250                              $1,080

3 years + $170/$1,250 = 3.14

The payback period is 3.14 years, or 3 years, 1 month and 19 days.

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3 years ago
Hearthstone, Inc., a home healthcare​ firm, has been using a single predetermined overhead allocation rate with direct labor hou
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Answer:

Correct answer is B.

<u>$26.86 per mile</u>

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Total estimated cost for travel = 94000

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Overhead allocation rate = total estimated cost/total miles

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3 0
3 years ago
Which government action is used to limit the amount of scarce goods citizens can buy during wartime?
Charra [1.4K]

The government’s action that they use in limiting the amount of scarce of goods for citizens to buy during the wartime is rationing. Rationing is an action or process of having a person to have a limited or fixed amount in which in goods—they can only have or brought a limited amount of goods.

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3 years ago
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