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hram777 [196]
3 years ago
12

Last year, a corporation purchased an office building for $220,000, of which $30,000 was allocated to the land on which the buil

ding was locateD. The building's salvage value was estimated to be $50,000. The corporation's current year depreciation deduction for the building is:
Business
1 answer:
Alex_Xolod [135]3 years ago
5 0

Answer:

$4872

Explanation:

Given: Purchase price of an office building= $220000.

           Out of cost building, $30000 was allocated to the land.

Remember, As per current US Tax code, commercial building can be depreciated over 39-year straight-line for commercial property.

Now, calculating the current year depreciation deduction.

We know, land is not depreciable.

∴ Cost of building= Purchase\ price\ of\ building - cost\ of\ land

⇒ Cost of building= \$ 220000 - \$ 30000

∴ Cost of building= \$ 190000

Next calculating depreciation using straight line method ignoring salvage value.

Depreciation deduction= \frac{\$ 190000}{39}

∴ Depreciation deduction= \$ 4872

Hence, The corporation's current year depreciation deduction for the building is $4872

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International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower t
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Answer:

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.

Explanation:

A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.

Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.

The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence  there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.

7 0
3 years ago
Under which law can a hotel guest sue for an injury that happened at the hotel’s spa?
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Answer:

C.) Premises Liability Act

Explanation:

This is because it happened on their property/premise. The Act states this to be true.

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When performing a job search, which two of the following tips should you employ in regard to the keywords you use? A. Use five o
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Answer:

B. Choose narrowed over broad keywords.

D. Use variations of keywords to broaden your results.

Explanation:

When performing a job search, you should employ the following tips in regard to the keywords you use;

Choose narrowed over broad keywords.

Use variations of keywords to broaden your results.

4 0
2 years ago
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Answer:

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:) Promotes equality. ...

:) Promotes certainty. ...

:) Promotes elasticity. ...

:) Saves time and money.

Explanation:

hope it was helpful....

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The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken,
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The correct answer is letter "B": Neither of them is correct, as determining the costs of the Act is possible, but determining the benefits is not fully possible.

Explanation:

The Sarbanes-Oxley (<em>SOX</em>) Act Of 2002 is a legislative response to several corporate scandals that sent shock waves through the world financial markets. The SOX attempts to strengthen corporate oversight and improve internal control. The main purpose of SOX is to protect shareholders from fraudulent representation in corporate financial statements.

In regards to the <em>Roland Company</em> case, the cost of implementing SOX will be a more strict accounting and financial book-keeping. This could provide the company with more accurate information that helps to make better corporate decisions but the benefits cannot be fully measured.

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