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Ann [662]
3 years ago
13

Billie Bob purchased a used camera (five-year property) for use in his sole proprietorship in the prior year. The basis of the c

amera was $2,400. Billie Bob used the camera in his business 60 percent of the time during the first year. During the second year, Billie Bob used the camera 40 percent for business use. Calculate Billie Bob's depreciation deduction during the second year, assuming the sole proprietorship had a loss during the year. (Billie Bob did not place the asset in service in the last quarter.)
Business
1 answer:
ludmilkaskok [199]3 years ago
6 0

Answer:

$48

Explanation:

Property's been listed in the business and use drops by more than n 50%, we have to use the straight-line method and all prior years' excess depreciation has to be recovered. The asset's been recapture within the five (5) years and the half-year convention will to be applied.

The evaluation for the current year's depreciation before adjusting for the prior year is done as follows

$2,400 × 0.20 × 40% = $192.

But we have to recover prior depreciation of $144 ($2,400 × 0.20 × 60% = $288 taken less $144 (straight-line, ½ year)) that would have been taken.

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Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h
andre [41]

Answer:

A. $29,000

B. $19,720

C. $69,000

$34,500

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($138,000 - $22,000) / 4 = $29,000

Unit of activity = Cost of asset - Salvage value) / Total working hours

= ($138,000 - $22,000) / 10000 = $11.6

$11.6 × 1700 = $19,720

Double declining method = Depreciation factor × net book value

Depreciation factor = 2 × (1/useful life)

2(1/4) = 0.5

0.5 × $138,000 = $69,000

Net book value = $138,000 - $69,000 = $69,000

Depreciationexpense for the second year = 0.5 × $69,000 = $34,500

I hope my answer helps you

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3 years ago
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Matt and alicia created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. which typ
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Keynesian economics emphasized that economic downturns could be due to: inflation. T/F?
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3 years ago
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such a
Olenka [21]

Answer:

a.

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Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.  

Examples: Revenue earned, expenses incurred etc.  

There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.  

The two methods of presenting cash flow statement are:  

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