The statute of limitations generally ends three years from the laterof (i) the date the tax return was actually filed (3 years from February 10th of this year) or (ii) the tax return’s original due date (3 years from April 15th of this year).Accordingly,<span>Latoya’s statute of limitations for the tax return will end 3 years from April 15th.</span>
Answer:
$180,000
Explanation:
A sunk cost refers to the cost that is incurred by the businesses but this cost cannot be recovered by the businesses.
Here, given that
Cost of equipment = $600,000
Accumulated depreciation = $420,000
Cost of new machine = $790,000
In this situation, the sunk cost is determined by subtracting the cost that are related to previous year from the cost of the equipment.
Sunk cost = Cost of equipment - Accumulated depreciation
= $600,000 - $420,000
= $180,000
Answer: Linkedln is an example of an app, yes.
Explanation:
Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
