How are you avalon23413?

larisa [96]

Answer:

b. depreciation reduces both the pretax income and the net income.

Explanation:

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.

Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.

The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.

In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.

Generally, it can be deduced from an income statement that depreciation reduces both the pretax income and the net income of a business firm or an organization.

8 0

2 years ago

Read 2 more answers

Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are

Stella [2.4K]

Answer:

14%

Explanation:

Let IRR from machine be represented with i

Now, $4,120 * Cumulative PV factor (i, 6 periods) = $16,000

Cumulative PV factor (i, 6 periods) = $16,000 / $4,120

Cumulative PV factor (i, 6 periods) = 3.883

Now, we refer to PV factor table, the PV Factor (3.883) falls nearest to i =14%. (See proof in the attached table as attached below)

So therefore, IRR = 14%

So, the machine's internal rate of return is closest to 14%.

5 0

3 years ago

_____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of ec

pogonyaev

Capital goods tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness.

7 0

3 years ago

If the price of a product increases rev: 05_10_2018 Multiple Choice total revenue will definitely increase. consumer surplus wil

Gekata [30.6K]

Answer:

consumer surplus will decrease.

Explanation:

Consumer surplus is defined as the difference between the price customers are willing to pay for a product and what they actually pay.

On the demand and supply curve it is indicated by the shaded area between equillibrum and demand curve as illustrated in the attached diagram.

For example let's assume the price a customer was willing to pay for a product was $50 and market price was $30

Initial consumer surplus= 50- 30= $20

Assume bmarket price increase to $40

The new consumer surplus is= 50- 40

Present consumer surplus= $10

So a price increase causes a decrease in the consumer surplus.

6 0

3 years ago

Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, t

valentina_108 [34]

Answer: Please see explanation for answers

Explanation:

Age Group Amount Estimated Percent Estimated Amount

Receivable Uncollectible Uncollectible

Not yet due $ 32,000 4 % $1,280

0-30 days past due 10,200 6 % $612

31–60 days past due 7,200 12 % $864

More than 60 days past due 2,600 30 % $780

Total $ 52,000 $3536

Calculation

1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent Uncollectible =

4% x 32,000= $1,280

6% x 10,200=$612

12% x 7,200=$864

30% x2600=$780

Total = $3,536

The allowance for uncollectible accounts = $3,536

2) Journal to Record the December 31, 2021, adjustment for a debit of $400

Estimated Amount Uncollectible =$3,536

Adjusted = $3536 + debit $400=$3,936

Date Account Debit Credit

Dec 31, 2021, Bad debts Expense $3,936

Allowance for uncollectible accounts $3,936

3) Journal to Record the write-off of $500

Date Account Debit Credit

April 3, 2022, Allowance for uncollectible

accounts $500

Accounts receivable $500

4a)Journal to reinstate the account previously wrtten off On July 17, 2022

Date Account Debit Credit

July 17, 2022, Accounts receivable $100

Allowance for uncollectible accounts $100

4b)Journal to record collection of cash

Date Account Debit Credit

July 17, 2022, Cash $100

Accounts receivable $100

5 0

3 years ago