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3 years ago

Genesis company buys equipment for $900 machine on credit. this transaction will immediately affect the

1 answer:

soldier1979 [14.2K]3 years ago

4 0

Balance Sheet
This type of accounting reports gets its name from the way that the two sides of the condition above resources on the one side and liabilities in addition to investors' value on the other must offset. This is instinctive: an organisation needs to pay for every one of the things it claims (resources) by either acquiring cash (going up against liabilities) or taking it from financial specialists (issuing investors' value).

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Wild company purchased an asset. Wild used the Modified Accelerated Cost Recovery System (MACRS) to depreciate the asset for tax

Lady_Fox [76]

Answer:

The correct answer is A.

All other things being equal, in the early years of the asset's life, the amount of income shown on the tax return will be higher than the amount of income shown on the income state.

Here's why

Explanation:

In the United States, the Modified Accelerated Cost Recovery System (MACRS) is a depreciation system used for tax purposes.

It allows the capitalized cost of an asset to be recovered over a specified period via annual deductions. The MACRS system puts fixed assets into classes that have set depreciation periods.

This depreciation system allows an asset to be depreciated faster in the first years of an asset's life and slows depreciation later on. This is beneficial to businesses from a tax perspective.

This is logical, the less the value of an assets, the less the property tax applicable to it and so the company increases it's bottom line in tax savings whiles maximizing the useful life of the asset.

Cheers!

4 0

3 years ago

Cisco Systems, a computer networking firm, has undertaken over 80 acquisitions in the last decade. It uses these acquisitions to

sukhopar [10]

Answer:

The correct answer is letter "D": valuable resources.

Explanation:

Acquisitions are purchases of companies by other entities by buying the target entity's stock. When the acquiring company purchases more than 50% of the stocks, it has full decisions over the target firm. Acquisitions happen when one institution wants to break market entry barriers, to decrease competition or to gain new technology. Therefore, the acquiring company obtains a valuable resource from the target firm.

7 0

3 years ago

The geographic principle under which particular peoples and particular places concentrate on the production of particular goods

natita [175]

Answer: local functional specialization

Explanation:

The geographic principle under which particular peoples and particular places concentrate on the production of particular goods is known as local functional specialization.

Local Functional Specialization was actually Europe's economic hallmark which spread to many parts of the world later whereby some specific people in some certain places would concentrate on production of certain goods and services.

4 0

3 years ago

Henry wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lig

garik1379 [7]

Answer:

Promotion.

Explanation:

The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty. Promotion is also one of the elements in the promotional mix or promotional plan.

3 0

3 years ago

Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, for $320,000. The equipment was expected to hav

kiruha [24]

Answer:

The amount of depreciation expense for the years ended December 31, 2015, 2016, 2017, and 2018, by;

(a) the straight-line method are; $71,250, $71,250, $71,250 and $71,250 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

(b) the units-of-output method are; $102,600, $91,200,$62,700 and $28,500 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

(c) the double-declining-balance method are; $160,000, $80,000,$40,000 and $5,000 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

TOTAL depreciation expense for the four years by each method are;

a) the straight-line method is $285,000

(b) the units-of-output method is $285,000

Explanation:

i. In applying the striaght-line method of depreciation, the residual value of $ 35,000 is deducted from the cost of the equipment to get $285,000. Then $285,000 is divided by the number of useful life of 4 years. This will yield to a uniform depreciation expenses of $71,250, $71,250, $71,250 and $71,250 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

ii. Using units-of-output method, the rate par hour is first determined by $285,000/20,000=$14.25/1 hr.

2015 = $14.25X7,200 hrs=$102,600

2016 = $14.25X6,400 hrs=$91,200

2017 = $14.25X4,400 hrs=$62,700

2018 = $14.25X2000 hrs=$28,500

ii. Applying double-declining-balance method requires a more careful approach. first we have to calculate the depreciation rate. (1/4 X 100 =25%). then double the rate (25%X2=50%).

2015 = $320,000 X 50% =$160,000

2016 = $160,000 X 50%= $80,000

2017 = $80,000 X 50%=$40,000

2018 = $40,000 - $35,000= $5,000. Where $35,000 is the residual value in year 4.

5 0

3 years ago