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Tamiku [17]
3 years ago
15

Modified Accelerated Cost Recovery System (MACRS) (LO 7.4) Mike purchases a new heavy-duty truck (5-year class recovery property

) for his delivery service on April 30, 2017. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention for tax. .
a. Calculate the amount of depreciation for 2017 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
b. Calculate the amount of depreciation for 2017 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense
c.Calculate the amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables
d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct.
Business
1 answer:
posledela3 years ago
4 0

Answer: See explanation

Explanation:

a. The amount of depreciation for 2017 using financial accounting straight-line depreciation will be:

= $39000 × 8months/5 years

= $39000 × 8months / 60months

= $39000 × 8/60

= $5200

b. The amount of depreciation for 2017 using the straight-line depreciation election will be:

= $39000 × 10%

= $39000 × 0.1

= $3900

c. The amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables will be:

= ($39000/2) + $3900

= $19500 + $3900

= $23400

d. If there is no income limit on the expense election, the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct will be:

= $25000 + $7000 + $1400

= $33400

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Answer:

A. $234,000 unfavorable

Explanation:

Calculation to determine Armstrong's direct material price variance

Using this formula

Direct material price variance=[(Standard cost-Actual cost)*Actual quantity]

Let plug in the formula

Direct material price variance=[($11-$24)*18,000)

Direct material price variance=$13*18,000

Direct material price variance=$234,000 Unfavorable

Therefore Armstrong's direct material price variance is $234,000 Unfavorable

4 0
2 years ago
A financial services firm that charges customers based on a percentage of the assets under management is best defined as:_______
Softa [21]

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4 0
2 years ago
A country is described by the Solow model, with a production function of y = k1/2. Suppose that k is equal to 400. The fraction
vovikov84 [41]

Answer:

the country is above the steady state

Explanation:

An economy has the per-worker production function <em>y =  k^{1/2}</em>

Here,

<em>y </em>is the output per worker and <em>k </em>is the capital-labor ratio

depreciation rate <em>d = 0.5.</em>

Population growth rate is <em>n = 0%</em>

a. At steady state

<em>Δk = 0</em>

<em>sy-k(d+n) = 0 </em>

<em>sy = k(d+n)</em>

<em>0.5 ( k^{1/2}) = k (0.05 + 0)</em>

<em>0.5  k^{0.5} = 0.05k</em>

then resolve for <em>k</em>, and obtain <em>k=100. </em>The capital in steady state.

If the k=400, then the output

<em>y = k^{0.5} </em>

<em>   =400^{0.5} </em>

<em>   =20</em>

Thus, the country is above the steady state

8 0
3 years ago
Owner of JavaJoint: Over the past year, the coffee store has become a daily hang-out for more and more teenagers. Many of our ad
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Answer:

(C) offering new evidence implying that the status quo is not incompatible with the owner’s goal

Explanation:

Considering that the main goal of the owner is to maximize his revenue, the store manager provides evidence that shows that the teenagers spend the same amount that the average adult and that the store is getting more new customers that the ones that have lost which indicates that the situation they are having is making the store to go in the direction of achieving his goal.

6 0
3 years ago
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25
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Answer:

The  Expected Earning for the college graduates is 40,000

Explanation:

The Expected Earning for a college alum with a four year college education in financial matters is determined as weighted normal all things considered, utilizing likelihood of every result as its weight.  

Although the Expected Earning is;  

Expected Earning = (25% × 30,000) + (50% × 40,000) + (25% × 50,000)  

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Expected Earning = 40,000

7 0
3 years ago
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