Answer with explanation:
Part 1. Straight-line depreciation can be calculated using the following formula:
Straight-line depreciation = (Cost of Asset - Residual Value) / Useful Life
Now by putting the values of each parameter, we have:
Straight-line depreciation = ($135,000 - Zero) / 5years = $27,000
So this depreciation will be charged to the asset to remainder of its life.
Part 2. We can calculate depreciation using double declining balance method whose formula is as under:
Double Declining Balance Depreciation = 2 X Cost of the asset/Useful Life
By putting values, we have:
Double Declining Balance Depreciation = 2 * $135,000 / 5 Years = $54,000
The depreciation would be charged each year unless it fells below the salvage value of the asset, which in this question is given and is zero.
Part 3.
Following are the main questions that we must consider before opting to any depreciation method:
- Does the cost of the asset chosen is accurate and in-accordance to International Financial Reporting Standards.
- Does the estimated Residual value of the asset is forecasted accurately. International accounting standard IAS 16 says that the scrap value must be discounted and its present value must be considered as a scrap value.
- Is the useful life of the asset estimated is in-accordance to the pace of technological advances?
- The asset's fair value must be considered each year to analyze whether or not the asset value in the market is aligned with our carrying value calculated or not.
So these were the factors which decides which method of depreciation must be opted or what estimate changes are required in calculating the fair value of the asset.
Answer:
B. To the left; recessionary gap; fall
Explanation:
Short-Run Macroeconomic equilibrium occurs when the real GDP demand is equal to the real GDP supply. When there is a shift to the left it means GDP demand decreases below supply leading to an excess in supply of goods and services. When this happens, there's a fall in the level of employment and other indicators of recession. This will also invariably lead to a Fall in the aggregate level of price in order to attract more demand.
The opposite scenario occurs when there is a shift to the right or increase in demand.
Answer:
A-she can deduct her mileage for driving from her home to her office at the professional suite
B-she can deduct her home office expenses
Explanation:
As a general rule of thumb, every expenses that incurred for business operation can be deducted from your taxes. This rule can still applicable even if you're working from your home.
A car mileage <u>can only be deducted according to the proportion that is used for work</u><u> </u> since it's considered as an expense that must incurred in order for Gwen to do her business.
Lunch money is considered as private consumption that does not related to her business operation. This is why it's not tax deducible.
As a result of the Great Leap Forward, industrial production declined and power shifted to conservative Communist leaders. The answers would be the second and third option. The Great Leap forward also resulted in widespread famine. This led to decrease production, starvation and even c<span>hallenges to Mao Zedong's position. Hope this answer helps.</span>
It may seem that franchise has many benefits since it allows for a person to open and operate a business without much knowledge of how to run a business and generally franchises are well advertised so not much marketing costs are needed, however negative impacts are much more, since you need to pay lifetime percentages for sales and operating under franchise as well as there is no room for creativity and too much dependence on a big business. Also the funds needed to open a franchise are much higher than same business but operating independently. So negative side is prevailing.
