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
Crank
3 years ago
14

On June 1, 2019, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for person

al use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2020. a.$4,704 b.$3,570 c.$10,100 d.$3,290
Business
1 answer:
worty [1.4K]3 years ago
4 0

Answer:

a.$4,704

Explanation:

Depreciation rate applicable for 2nd year as per MACRS 5 year class property = 32%

So, Irene cost recovery deduction = $21,000 * 32% * 70% = $4,704

Hence, the cost recovery deduction for Irene in 2020 is $4,704.

You might be interested in
Harmony Company sells hand-knit scarves. Each scarf sells for $40. The company pays $60 to rent vending space for one day. The v
Nataly_w [17]

Answer:

B) 3 scarves

Explanation:

total fixed costs per day = $60 (rent)

selling price per scarf = $40

variable cost per scarf = $15

contribution margin = selling price per unit - variable cost per unit = $40 - $15 = $25

break even formula in units = total fixed costs / contribution margin = $60 / $25 = 2.4 units, since you can only sell complete units, the break even amount is 3 scarves.

8 0
3 years ago
In the equation of exchange, M x V = P x Q, the P represents ___________________.
Bogdan [553]

Answer:

P in the equation represents Price level

Explanation:

The equation above is referred to as the equation of exchange.

M = money supply, V= velocity of money, P= price level and Q= real output (real GDP)

P × Q gives the nominal GDP while M×V is the effective money supply.

The total value of goods and services available in the economy (represented by the nominal GDP) is equals to the total amount of money available to purchase them (the effective money supply.

The velocity of money is the rate at which money been is used or spent for transaction purposes in the economy. It is assumed to be constant.

For example, If there exist only a $1000 note in the economy, this amount just needs to be spent once to purchase a total nominal GDP of $1000. However, if there exist just one $500 note, then it means the $500 will need to be spent 2 times to purchase the total value of goods worth $1000. The 2 is the velocity of money

This equation is also used to explain the concept of the quantity theory of money.

The theory states that if an economy is operating at the full employment level, an increase in money supply will not impact the real GDP rather it will drive up the price level up. This idea forms the basis of the position of some economists that money supply drives inflation

The assumptions of the theory are as follows:

The velocity of money is constant

The the economy is at the full employment output. This implies that the economy is using all of its productive resources efficiently

3 0
3 years ago
Bonds that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are cl
vitfil [10]

Answer:

C. Trading Securities

Explanation:

Trading securities refer to those securities which are purchased not with the intention of holding them till maturity, but to realize the gains arising as a consequence of short term price movements.

Bonds refer to debt instruments issued by the borrower for raising long term finance whereby the borrower promised to pay fixed coupon rate of interest on timely basis and principal repayment upon redemption.

In the given case, bonds purchased with the intention of selling in the near future with an objective to benefit from short term price movements represent trading securities. The benefit would be in the form of short term capital appreciation.

5 0
3 years ago
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8
Alisiya [41]

Answer:

$35,010,000

Explanation:

Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Cash flow = $11.4 million + $22.6 million + $1,010,000

Cash flow = $35,010,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000

4 0
3 years ago
In the rule-making process, the legislature allows executive agencies wide latitude to make decisions within the broad requireme
abruzzese [7]

Answer:

<em>Discretion</em>

Explanation:

In the legal system, <em>discretion is most often described as a judge's ability to choose where, how and how severely a person who has been convicted should be sentenced.</em>

An individual decides to use his or her options and decides what to use, whether he or she is a police officer who arrests a person on the street (criminal) or expels someone from an apartment (civil) or anywhere between.

There are some cases overruling or undermining the rule of law by imposing control.

Nevertheless, legislation can not be written without discretion, so the rule of law helps to direct discretion against societal expectations, standards and, at least in part, public interest.

5 0
3 years ago
Other questions:
  • Mike is registering his real estate company. He has a license and all of his sales associates and broker associates have license
    9·1 answer
  • Suzie Smith is a real estate sales associate. She is a top producer and likes to maintain her independence. She sets up her offi
    13·1 answer
  • A department store uses a perpetual inventory system. At year-end, the balance in the merchandise inventory account is $2 millio
    11·1 answer
  • Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's b
    13·1 answer
  • Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr
    6·1 answer
  • Internal users of accounting information include all of the following except A. investors. B. company officers. C. marketing man
    10·1 answer
  • QRM, Inc.'s marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. Aft
    6·1 answer
  • How managers can leverage on organizational behaviour components to maximize business success
    9·1 answer
  • According to Ken Guest's research on Chinese restaurants in the United States, the network of services, businesses, and smuggler
    15·1 answer
  • _____ gives employers the benefit of keeping an experienced worker and gives older people a chance to make a continued contribut
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!