1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
masha68 [24]
3 years ago
12

On August 8, 2013, Holly purchased a residential apartment building. The cost basis assigned to the building is $800,000. Holly

also owns another residential apartment building that she purchased on June 15, 2013, with a cost basis of $500,000.
a. Calculate Holly's total depreciation deduction for the apartments for 2013 using MACRS.

b. Calculate Holly's total depreciation deduction for the apartments for 2014 using
Business
1 answer:
Minchanka [31]3 years ago
5 0

Answer:

a. $20,762

b. $47,268

Explanation:

a. 2013

First Building

Date of Purchase = Aug 8, 2013

Using Column 8 as Aug is 8th month of the year and Row 1 as it is first year after purchase from MACRS Table  

MACRS rate = 1.364%

Depreciation for Building in 2013 = 1.364% * $800,000 = $10,912

Second Building

Date of Purchase – Jun 15, 2013

Using Column 6 as Jun is 6th month of the year and Row 1 as it is first year after purchase from MACRS Table  

MACRS rate = 1.970%

Depreciation for Building in 2013 = 1.970% * $500,000 = $9,850

Total

Total Depreciation for the year 2014 = $10,912 + $9,850 = $20,762

b. 2014

Total cost of Building =  $800,000 + $500,000 = 1,300,000

Total Depreciation for the year 2014 = $1,300,000 x 3.636%

Total Depreciation for the year 2014 = $47,268

You might be interested in
Which of the following is an incorrect way to avoid struck-by rolling hazards?
finlep [7]

The answer is: A.Position a worker to signal you when operating a vehicle in reverse gear without audible forward alarm

When operating vehicle in reverse gear, the operator cannot always see whether the worker who gives the signal able to see the moving vehicles or not.

Which is why an audible sound for moving vehicles is needed so the other workers could notify the location of your vehicles and avoid themselves from being crushed.

3 0
3 years ago
Read 2 more answers
Becker Bikes manufactures tricycles. The company expects to sell 520 units in May and 650 units in June. Beginning and ending fi
Kitty [74]

Answer:

The budgeted variable overhead for May is $5,335

The budgeted variable overhead for June is $7,260

The budgeted fixed overhead for both May and June is $11,500 per month

Explanation:

First we have to determine how many tricycles does Becker Bikes expects to manufacture during May and June:

May:

beginning inventory May           180

expected sales May                   520

ending inventory May                 145

Becker is planning to manufacture 485 tricycles (= 520 + 145 -180)

June:

beginning inventory May           145

expected sales May                   650

ending inventory May                 155

Becker is planning to manufacture 660 tricycles (= 650 + 155 -145)

The budgeted variable overhead for May = 485 tricycles x $11 per tricycle = $5,335

The budgeted variable overhead for June = 660 tricycles x $11 per tricycle = $7,260

The fixed overhead for both May and June is $11,500 per month

8 0
3 years ago
Alexandra has determined that studying an hour for her economics quiz will improve her grade on the quiz from 75 to 100. She als
Darina [25.2K]

Answer:

study when the hourly rate is below or equal to $20

Explanation:

Cosidering the economic principles of opportnity cost Alexandra will only study that extra time if the loss wages are less or equal to $20 dollars

as a higher hourly  rate will make the $20 dollar she consider the change in grade worth it to leave a net loss after considering the implicit cost of the test

5 0
3 years ago
What is the best way for a plaintiff to establish legal liability for a CPA: Question 47 options: Prove the CPA made an untrue s
kramer

Answer:

If a CPA does an audit irresponsibly, the CPA will be held liable to third parties who were recognized and not foreseeable to the CPA for gross negligence.

It needs to be specified if the third party had been “anticipatable,” liability; it may be recognized for ordinary negligence within a Rosenblum v. Adler decision.

Explanation:

3 0
2 years ago
Your firm (an Australian firm) makes a sale to a Japanese customer.  The sale price is 200 million Japanese Yen payable in exact
charle [14.2K]

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90

= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

= ¥351.26214 =A$1

c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

A$ 1,333,333.33333

Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward  Exchange outcome =  in Australian Dollars = ¥200 million/ ¥50 =

A$4 million

Hedging outcome minus Forward Exchange outcome

A$2 million - $4 million = -A$2million

Explanation:

a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive  ¥200 million in 90 days, can enter into a forward contract to deliver the  ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.

b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

5 0
3 years ago
Other questions:
  • What is enhanced by skillful organization of the information presented in a report?
    7·1 answer
  • Describe three ways that globalization is having a negative impact on the environment
    7·1 answer
  • A company seeking investment opportunities has collected the following​ information:Project AProject BProject CProject DInitial
    6·1 answer
  • Present valuelong dash—Mixed streams   Consider the mixed streams of cash flows shown in the following​ table,
    13·1 answer
  • A local man saved someone from drowning in a lake. Which career professional would travel onsite to get the facts of the story?
    13·2 answers
  • Shawn approaches most aspects of life with the expectation that he will be successful. He expects a great deal of himself and se
    10·1 answer
  • After September​ 11, 2001, the federal government increased military spending on wars in Iraq and Afghanistan. Is this increase
    14·1 answer
  • Fabian was planning to start his own publishing business. He met a few people who had set up their own publishing agencies and m
    11·2 answers
  • The provision in a listing contract that gives additional authority to the broker and obligates the broker to distribute the lis
    11·1 answer
  • Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and sma
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!