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
yawa3891 [41]
3 years ago
11

At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and plac

ed in service the following assets during the year:
Date Cost
Asset Acquired Basis
Computer equipment 3/23 $5,000
Dog grooming furniture 5/12 7,000
Pickup truck 9/17 10,000
Commercial building 10/11 270,000
Land (one acre) 10/11 80,000
Assuming Poplock does not elect §179 expensing or bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answers to the nearest whole dollar amount.)
a. What is Poplock’s year 1 depreciation expense for each asset? (Leave no answer blank. Enter zero if applicable.)
b. What is Poplock’s year 2 depreciation expense for each asset? (Leave no answer blank. Enter zero if applicable.)
Business
1 answer:
valina [46]3 years ago
6 0

Answer: See attachment

Explanation:

a. What is Poplock’s year 1 depreciation expense for each asset?

See attachment. Note that the depreciation for the assets were calculated as the original basis × the rate. e.g for Computer equipment, the Depreciation was, the original basis of $5000 × the rate of 20% which equals $1,000.

b. What is Poplock’s year 2 depreciation expense for each asset?

Check attachment.

Depreciation for computer = $1600

Depreciation for day grooming furniture = $1714

Depreciation for popup truck = $3200

Depreciation for commercial building = $6923

You might be interested in
Give two characteristics of a perfectly competitive market.
sergey [27]
1. a large number of buyers and sellers
2. an identical or a homogeneous product
7 0
3 years ago
lark Bell started a personal financial planning business when he accepted $36,000 cash as advance payment for managing the finan
just olya [345]

The Effects of the Advance Payment (Receipt) on Lark Bell's Year 1 Financial Statements are:

                    Balance Sheet                                                                                                                      

              Assets =  Liabilities                                  + Equity  

Cash +$36,000 = Unearned revenue +$15,000 + Service Revenue +$21,000

                                 Income Statement                              Cash Flow

                     Revenue - Expense = Income                         Statement

Service Revenue +$21,000                                 Cash inflow +$36,000 OA

In Year 1, the Assets (Cash) will increase by $36,000.  There is a corresponding increase in Liabilities (Unearned Revenue) of $15,000 and an increase in Equity (Service Revenue) of $21,000.

Thus, the amount of revenue that Bell would recognize on the Year 2 income statement from this transaction in Year 1 is $15,000.  This covers 5 months from January to May.

Learn more about the effects of advance payment and revenue at brainly.com/question/24300418

5 0
2 years ago
Six months after starting a quilting business with a partner, Penny finds that actual revenues are significantly lower than proj
pychu [463]

Answer:

escalation of commitment

Explanation:

Penny invest into the business additional funds ignoring the expected outcome of the business (the future returns are not expected to increase)

Penny is not doing the proper analysis of the past six month

The invested funds, time and other resources should not be considered they are sunk cost. The 50,000 will increase the losses not cut them as the return are not going to improve. Additional funds should be invested when there is a financial need due to other project which required more lverage and not to make up for revenues falling behind budget

Penny avoids to acknowle the true fact of the business.

5 0
3 years ago
Read 2 more answers
Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 Index was up 16.5% during the same p
Umnica [9.8K]

Answer:

annual return = 18.04

Explanation:

given data

fund = $200 million

S&P 500 Index = 16.5%

gross return assets = 21%

expense ratio = 2%

benchmark return = 1%

incentive bonus = 0.1 %

to find out

annual return on this fund

solution

we get here first management cost for the year  that is

management cost = fund × gross return   .........................1

management cost = $200 million × 1.21

management cost = $242,000,000

so net return will be

net return = gross return assets - S&P 500 Index

net return = 21% - 16.5%

net return = 4.5%

so when we add this net return to expense ratio is

= 2 % + 4.5% (0.1 )

= 2.45 %

management cost   will be

management cost   = $242,000,000 × 2.45 %

management cost   = $5,929,000

so

annual return will be here as

annual return = \frac{242000000-5929000-200000000}{200000000}

annual return = 0.18035

annual return = 18.04

6 0
3 years ago
Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access th
satela [25.4K]

Answer:

Option C is the correct answer.

<u>Debit Depletion Expense $1,358,500; credit Accumulated Depletion $1,358,500.</u>

Explanation:

Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined.

Depletion expense = ( Mineral Deposit Cost + Additional cost)/ Estimate Extraction * N0 of ton extracted in first year

Depletion expense = (5900000 + 600000)/2000000 * 418000

Depletion expense = $ 1,358,500

6 0
3 years ago
Other questions:
  • The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco
    10·1 answer
  • Moira Company has just finished its first year of operations and must decide which method to use for adjusting inventory account
    9·1 answer
  • Which one of the following is not a method used by companies to accelerate cash receipts? Offering discounts for early payment A
    14·1 answer
  • You have been appointed head of marketing for Barry's Younique Yachts. Barry, the CEO, is interested in determining whether offe
    13·1 answer
  • Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z dies after 15 years of receiving
    9·1 answer
  • Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quic
    14·1 answer
  • A movie theater finds that when it prices tickets at ​$9​, the theater sells 250 per day. When the price is reduced to ​$8​, the
    7·1 answer
  • A formal document detailing the process to be followed when a firm recruits for an open position is a ________.a) recruiting gui
    15·1 answer
  • Deciding on the best means of transportation depends on ____.
    6·2 answers
  • Black Lilies is a fledgling apparel company which is run and managed by its creator Patricia. She has advertised for an accounti
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!