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3 years ago

Cora purchased a hotel building on May 17,.2018, for $3,000,000. Determine the cost recovery deduction for 2019.

Business

1 answer:

Ostrovityanka [42]3 years ago

7 0

Answer:

d. $76,920

Explanation:

Calculation to Determine the cost recovery deduction for 2019

Based on the information given we were told that they purchased a hotel building on May 2018 for the amount of $3,000,000 which means that to calculate the cost recovery deduction for 2019 we would be using 2.563 to multiply the cost of purchasing the hotel reason been that hotel building is a non residential property.

Hence,

Cost recovery deduction=2.563* $3,000,000

Cost recovery deduction=$76,920

Therefore the Cost recovery deduction will be $76,920

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Answer:

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Explanation:

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4 years ago

Ace Manufacturing purchased merchandise inventory for $8,000. At the end of the accounting period it has a market value of $7,80

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Answer:

Dr. Cr.

Cost of Goods Sold $200

Merchandise Inventory $200

Explanation:

Inventory is value at Lower of Cost and Net realizable value.

Cost of Inventory = $8,000

Net Realizable Value of Inventory = $7,800

The lower value is the Net realizable value and Inventory should be reported by $7,800 on the balance sheet. The net difference of $200 is adjusted to bring the value of inventory to it net realizable value.

Expense to be recorded = $8,000 - $7,800 = $200

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3 years ago

An insurance office owns a large building downtown. The sixth floor of this building currently houses its entire Human Resources

ladessa [460]

Answer:The cost of the research into the feasibility of renting the sixth floor.

Explanation:

This cost will not considered for it's a sunk cost which was useful in helping the company to take a decision but it's not recoverable, the letting or not letting out of the building cannot change, so it should not be consider when deciding whether to rent out the sixth floor.

The price of renting the sixth floor out impacts on the income and so equally is cost in terms of materials in moving the human resources department, refurbishing the new office and efficiency this makes all these relevant in deciding whether to rent out the sixth floor.

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4 years ago

Which of the following would shift the production function upward? an increase in the price of oil an improvement in technology

hichkok12 [17]

Answer:

an improvement in technology

Explanation:

because the consumer prefers quality over quantity

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3 years ago

On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (Use

horsena [70]

Answer:

(1) $1,920

Explanation:

(1) Accrued interest payable on December 31, 2017:

= Principle × Rate × Time period

= $160,000 × 8% × (54 ÷ 360)

= $1,920

The Journal entries are as follows:

(2) On December 31, 2017

Interest Expense A/c Dr. $1,920

To interest payable $1,920

(To record the accrued interest expense)

(3) On February 05, 2018

Notes payable A/c Dr. $160,000

Interest Expense A/c Dr. $1,920

Interest payable A/c Dr. $1,280

To cash A/c $163,200

(To record the payment of notes and interest)

Working notes:

cash:

= $160,000 + [$160,000 × 8% × (90 ÷ 360)]

= $1,280

3 0

4 years ago