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2 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]2 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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As prepaid expenses expire with the passage of time, the correct adjusting entry will be a:

Nonamiya [84]

Answer:

d. debit to an expense account and a credit to an asset account.

Explanation:

When a prepayment is made, the entries recorded are Debit prepaid expense and credit Cash account to recognize the amount prepaid.

As time passes and the expenses are incurred, the entries required are debit expense account and credit prepaid expense (an asset) with the amount of the expense incurred as a result of the passage of time.

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2 years ago

1. Define business. Explain the functions of business.

kotegsom [21]

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↦ Business is an economic activity that is directed towards acquiring and earning profit and wealth through customer's satisfaction. It plays an important role for the economic development of the country and uplift living standard of the people. Some of the functions of business are described below :

Creation of utilities : For the fulfillment of needs of customers , business creates various types of utilities. A business has many components and each component is involved in the creation of the certain utility. For instance : manufacturers create from utility , transportation system created place utility , warehousing time utility and insurance companies risk utility.

Generation of employment : Business is a source of employment. Various types of employees are required to a business. In industries , both skilled and unskilled manpower are required for production , distribution and auxiliaries functions. Hence , the development of industry and commerce helps to solve the unemployment problem of a nation.

Earning Foreign Currency : Business is the main source of earning Foreign Currency. Foreign currency can be earned by exporting surplus products and services to foreign countries. The development of export trade brings favourable balance in payment.

Provides investment opportunities : Business provides investment opportunities to the investors in production and distribution activities. Depending on the nature of investment ; investors receive dividend , interest or other financial benefits. The persons of organizations having sufficient capital can invest their money in production and commercial activities according to their interest , capability and knowledge.

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3 years ago

The aggregate expenditure model can be written in terms of four spending categories. Which equation shows the relationship betwe

Kay [80]

Answer:

The correct answer is AE = C + I + G + NX.

Explanation:

Aggregate spending (in Keynes's opinion) is the key to economic activity, that is, what families, businesses and government plan to buy determines what companies will end up producing. In the first stage of the analysis, a simplified model excludes the government, assumes that there is no foreign sector, and that the level of real income or income (and not prices) is the main determinant of aggregate expenditure

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3 years ago

Indigo Corporation significantly reduced its requirements for credit sales. As a result, sales during the current year increased

zhuklara [117]

Answer:

(a) $200,100

(b) $200,100

Explanation:

The movement in the accounts receivable balance at the start and end of an accounting period is due to cash payments, additional credit sales, and any amount written off during the period.

This may be expressed mathematically as

opening balance + sales - cash collected - amount written off = closing balance

$35,100 + $361,800 - cash collected = $196,800

Cash collected = $35,100 + $361,800 - $196,800

= $200,100

8 0

3 years ago

Zack has two savings accounts with a total of $9,000. he withdrew 10% from one and 60% from the other to buy his girlfriend an e

skelet666 [1.2K]

Originally,
Let x = the balance in the first account.
Let y = the balance in the second account.

The total amount in the two accounts is $9,000, therefore
x + y = 9000 (1)

Zack withdraws 10% of x and 60% of y for a total of $2,175.
Therefore
0.1x + 0.6y = 2175
or
x + 6y = 21750 (2)

Subtract (1) from (2).
x + 6y - (x + y) = 21750 - 9000
5y = 12750
y = 2550
From (1), obtain
x = 9000 - 2550 = 6450

The balance in the first account is
0.9*x = 0.9*6450 = $5,805
The remaining balance in the second account is
0.4*y = 0.4*2550 = $1,020

Answer:
The balance in the first account is $5,805
The balance in the second account is $1,020

8 0

3 years ago