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Art [367]
2 years ago
5

Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and

luxury automobile limitations) on May 1, 2018 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2018 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method?
Business
1 answer:
never [62]2 years ago
6 0

Answer: Cost of truck / expected useful life= 24,000 / (5 year × 12 months)= 400 dollar per month 400×8= 3200 dollar

Explanation:

Considering no salvage value of the truck at the end of the 5-year period and need for 8 month period of depreciation (from May 1 till the end of the year) we use formula of straight line method: Cost of truck / expected useful life= 24,000 / (5 year × 12 months)= 400 dollar per month. And in order to find taken accumulated depreciation for 8 months of 2018: 400×8= 3200 dollar. At the end of 2018 we should write off 3200 dollar from the value of truck.

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Consider a 2.75 percent TIPS with an issue CPI reference of 184.2. At the beginning of this year, the CPI was 195.4 and was at 2
Vikki [24]

Answer:

The capital gain of the TIPS in dollars is $27.69

Explanation:

Given

CPI = 200.5 (Beginning of the Year)

CPI = 195.4 (End of the year)

% = 2.75

CPI Reference = 184.2

CPI Reference of 184.2 = $1,000 rate

Capital Gain is calculated by the difference in value at the end of the year value and at the beginning of the year.

End of the year value = 200.5/184.2 * ($1000)

End of the year value = $1088.49

Beginning of the year value =

= 195.4/184.2 * ($1,000)

Beginning of the year value = $1060.80

Capital Gain =$1,088.49 - $1,060.80

Capital Gain = $27.69

3 0
2 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it h
mars1129 [50]

Answer:

See explanation below

Explanation:

Option of selling unfinished bookcase

Sales

$58

Less Variable cost

$38

Contribution

$20

Less fixed cost

$10

Net profit

$10

Option of selling finished bookcases

Sales

$73

Less variable cost

$7

Contribution

$66

Less fixed cost

$10

Net profit

$56

With regards to the above analysis, it is recommended that Pine street inc. Should go with the option of selling finished bookcases because it would yield the company the highest profit.

7 0
3 years ago
A ___________ occurs when a company examines its data to determine if it can meet business expectations, while identifying possi
Lelu [443]

Answer: Data gap analysis.

Explanation:

A Data gap analysis occurs when an organization evaluates it's available data, and seek methods of improving data collection to meet up with business expectations. Data gap analysis is done to ensure that, an organization has the right information to enable them run operations effectively.

4 0
3 years ago
MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg
timama [110]

Answer:

weighted cost of capital for next year is 10.27 %.

Explanation:

Weighted cost of capital = Ke × (E/V) + Kd × (D/V)

Ke = Cost of Equity

    = Dividend Yield + Expected growth rate

    = $1.30 / $30.00 + 0.07

    = 0.11333 or 11.33 %

Kd = Cost of Debt

     = Interest × (1 - tax rate)

     = 11% × ( 1 - 0.21)

     = 8.69 %

Weighted cost of capital =  11.33 % × 60% + 8.69 % × 40%

                                         = 10.27 %

5 0
2 years ago
When is it appropriate to use a nontraditional résumé?
MissTica

Answer: Nontraditional resumes are ideal for job seekers in particularly creative industries, such as marketing and design. More specifically, online resumes are helpful for applicants who want to post films, sound clips, photographs, or other pieces of work related to their industry.

Explanation:

4 0
2 years ago
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