Answer:
Correct pretax income is $ 88,450
Explanation:
The correct depreciation=cost-salvage value/useful life
cost is $52,400
salvage value is $0
useful life is 8 years
annual depreciation charge=($52,400-$0)/8=$6,550
The annual depreciation ought to have been charged in income statement not the original cost of asset acquired.
The correction would to add the cost of the asset to the pretax income and then deduct the correct depreciation charge as below:
Pretax income $42,600
cost of asset $52,400
depreciation ($6,550)
correct pretax income $ 88,450
Answer:
$4,600
Explanation:
Casualty loss deduction = Adjusted basis - insurance compensation = 5800-1200= $4,600
Probably not. If it's a small firm it probably doesn't have as much business as a large firm would. Take McDonalds for example. Does a mom and pop diner that fits the description of this question have more profits than McDonalds?
Answer: Added to the book balance of cash
Explanation: Adding back the value of the outstanding chq is to increase the cash book balance for that period and keeping in mind that the chq might be presented in the current period or returned in the current period.
Answer:
yes!!!! it can... if u are able to do it.
Explanation:
I think soo