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Irina-Kira [14]
3 years ago
9

Beth's business purchased only one asset during the current year (a full 12-month tax year). Beth placed in service machinery (7

-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation).

Business
1 answer:
nalin [4]3 years ago
4 0

Answer:

the depreciation expense on the equipment will be 1,785 for tax purpose.

Explanation:

We will look into the MACRS (Modified Accelerated Cost Recovery System)

table for a property of seven years placen into service in the 4th quarter:

Which give us 3.57%

now we multiply the basis by the coefficient and get the value for depreciation

50,000 x 3.57% = 1,785 depreciation expense under MACRS

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DuBois, Inc. announces a large stock dividend of 65% of the 4.96 million outstanding shares of common stock. The current price p
Karolina [17]

Answer:

Option (B) is correct.

Explanation:

Dividend per share:

= (65% of Par value of the stock)

= (65% × 0.01)

= $0.0065

Hence, the total dividend:

= (Dividend per share × outstanding shares of common stock)

= (0.0065 × 4.96 million)

= $32,240

Hence, the dividend would cause a decrease in retained earnings.

Therefore, the correct option is B.

6 0
3 years ago
A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The
bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

3 0
3 years ago
Your company is interested in producing and marketing a line of coffee that will penetrate the European market. Your firm is wil
Mrac [35]

A franchise can be used.

<h3><u>Explanation:</u></h3>

Franchise refers to the authorization that is given by the government for involving in commercial activities. It is the permission that is obtained legally for using the ideas, expertise and processes of some one else with their permissions.

In the example given, a firm is willing to provide all necessary materials for the preparation of coffee and wants to penetrate the European market. The company here provides all the equipment, ingredients, trademarks and operating systems and hence it can make use of franchise type of strategy.

7 0
3 years ago
pany is considering the purchase of a new bubble packaging machine. If the machine will provide $15,000 annual savings for 12 ye
finlep [7]

Answer:

Present Value= $74,018.97

Explanation:

Giving the following information:

The machine will provide $15,000 annual savings for 12 years and can be sold for $48,000 at the end of the period.

Interest rate= 15%

<u>To determine the present value of the savings, first, we need to determine the future value at the rate provided.</u>

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual save

FV= {12,000*[(1.15^12)-1]}/ 0.15

FV= 348,020 + 48,000= $396,020

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 396,020/1.15^12= $74,018.97

4 0
3 years ago
​You are meeting with the new CEO of your company to discuss marketing channel strategies. You are delighted to learn that the C
jeyben [28]

Answer:

You should make sure the channel you choose is capable of creating lots of:

Time and place utilities.

Explanation:

Utility:

In business, utility is defined as the benefit or value that a customer gets from the product of a business.

  • There are fours type of utilities which are: Time Utility, Form Utility, Place Utility and Possession Utility.
  • Time Utility: This utility means that your product remain available to the customer at a time when the customer need it. Like if a customer wants the product available at night then it should be available.
  • Place Utility: This utility means that the your product is available to the customer wherever the product is required. For example if a customer wants your product at a specific place then it should be available.
  • In this questions, time and place utility were required from the manager.    
8 0
3 years ago
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