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mote1985 [20]
2 years ago
7

Potomac LLC purchased an automobile for $31,200 on August 5, 2020. What is Potomac's depreciation deduction for 2020

Business
1 answer:
morpeh [17]2 years ago
5 0

Answer:

Potomac LLC

Depreciation deduction for 2020 is:

$2,600.

Explanation:

a) Data and Calculations:

August 5, 2020, Purchase of an automobile for $31,200

Depreciation rate = 20% for year 1

Depreciation expense = $31,200 * 20% * 5/12 months

= $2,600

b) Automobiles attract 20% depreciation in the first year.  However, since Potomac LLC purchased the automobile on August 5, 2020, the depreciation expense of $6,240 ($31,200 * 20%) will be prorated for five months, giving an average of $520 per month.  This results to $2,600 ($520 * 5).

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b) overall low-cost leadership

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By Michael Porter, this is one of the <em>generic strategies</em>. This strategy implies that the company is dominating the market by securing a low-cost approach across all channels (supplier side, customers, rivals). This is generally achieved by low operating costs and by the factors listed out in the example itself (influencing rivals and suppliers). This type of strategy puts a company ahead of most of its competitors.

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George is paid for holidays, sick days, vacation, personal days, and jury duty. these are his _____. paid leave benefits insuran
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If a consultant is not a consultee's administrative supervisor, the consultant: Question 7 options: can avoid liability for any
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Since the consultant is not a consultee's administrative supervisor , then he would not be held legally responsible for actions taken by the consultee based on the consultant's advice.

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8 0
2 years ago
The normal balances of sales, sales discounts, and sales returns and allowances are ________. debit, credit, and credit, respect
Y_Kistochka [10]
<h3><u>Answer;</u></h3>

credit, debit, and debit, respectively

<h3><u>Explanation</u>;</h3>

Normal balance of sales; Credit

Normal balance of sales discount; Debit

Normal balance of sale returns and allowances; Debit

  • A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
  • The normal balance of sales is credit.
  • The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
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5 0
3 years ago
Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $205,000 and its net i
Whitepunk [10]

Answer:

Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

Explanation:

Old Net profit margin = Net income/ Revenue

                                    = $10,600/$205,000

                                    = 5.170731707%

Old ROE = Net profit margin*Asset turnover*Equity multiplier

              = 0.0517*1.33*1.75

              = 12.03487805%

New net income = $10,600 + $10,250

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New net profit margin = $20,850/$205,000

                                     = 10.17073171%

New ROE = 0.1017*1.33*1.75  

                = 23.67237805%

Change in ROE = New ROE – Old ROE

                          = 23.67237805%  - 12.03487805%

                           = 11.6375%

Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

6 0
3 years ago
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