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Art [367]
3 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]3 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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Answer:

B. the bond demand curve shifts to the​ left, the bond supply curve shifts to the​ right, and the equilibrium interest rate usually rises.

Explanation:

In this case:

  • The supply increases, curve shifts to the right.
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  • Both the above shifts cause the price of bonds to decrease
  • The above changes cause interest rate to increase

In this way, the quantity of bonds increase

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3 years ago
What quality does an organizational structure reflect?
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The quality an organizational structure reflects is that you'll be able to find everything easier and it'll be more professional

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Sorrento Skies Corporation issues 16.000 shares of $100 par value preferred stock for cash at $120 per share. The entry to recor
raketka [301]

Answer:

The correct option is D,credit to Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par-Preferred Stock for $320,000

Explanation:

The total par value of the preferred stock issue is $100 multiplied by 16,000 which gives $1,600,000 while the remaining $20 per share multiplied by 16,000 that gave rise $320,000 goes to the credit of paid-in capital in excess of par-preferred stock account.

Option A is wrong because the preferred has a par value of $100 hence the total cash proceeds cannot be posted to preferred stock account alone.

Option B is wrong because the excess of $20 per share cannot be posted to retained earnings since it is net income

7 0
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Your company is about to undertake a major investment project. The project will require an initial outlay of $100 million for fi
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A) initial outlay = $150 million

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Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28

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B) Using a financial calculator, NPV = -$16.85 million

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3 years ago
Why do people establish their own business?​
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financial freedom

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the reasons people start their own business is usually because they desire financial freedom meaning they would like have more disposable resources for themselves.

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