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morpeh [17]
3 years ago
13

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus

depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current (second) year of ownership?
a. $16,806
b. $14,939
c. $16,163
d. $16,072
Business
1 answer:
Serggg [28]3 years ago
6 0

Answer:

b. $14,939

Explanation:

Property placed in service in 1st year:  

                                                Amount $

2nd quarter                              15,000

3rd quarter                                6,000

4th quarter                                <u>40,000</u>

Total furnishing at beginning of 2nd Year $61,000

Half Year depreciation rate in 2nd Year  as per Macrs table under "7 years life" assets, the applicable depreciation in the 2nd year is 24.49%

Thus, amount of depreciation expense is allowable in the current (second) year of ownership = $61,000 * 24.49% = $14938.90

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Suppose the European Parliament is considering legislation that will decrease tariffs on agricultural products imported from the
VMariaS [17]

Answer:

€2,500 million

Explanation:

Data provided as per the requirement of estimated benefit to the population is here below:-

Benefit of the tariff reduction = €5

Size of population = €500 million

The computation of estimated benefit to the population is shown below:-

Estimated benefit to the population = Benefit from tariff reduction × Size of population

= €5 × €500 million

= €2,500 million

Therefore for computing the estimated benefit to the population we simply applied the above formula.

4 0
3 years ago
The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ___________
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The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called .. Ledger.
8 0
2 years ago
From 1970 to 1998 the U.S. dollar Group of answer choices gained value compared to the Italian lira because inflation was higher
balu736 [363]

Answer:

A. Gained value compared to the Italian lira because inflation was higher in Italy.

Explanation:

8 0
3 years ago
What is a rental inventory and why is it a good idea to have one?
bearhunter [10]

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3 0
2 years ago
You purchased shares of stock one year ago at a price of $62.37 per share. During the year, you received dividend payments of $1
andreyandreev [35.5K]

Answer:

real rate of return= 10.93%

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Capital gain =  $69.49- 62.37 = 6.92

Dividend -= 1.77

Nominal return on stock= (1.77 + 6.92)/ 62.37 × 100 =  13.93 %

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money  

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.  

The relationship between inflation, real return and nominal return rate is given using the Fishers Effect;  

N = ( (1+R) × (1+F)) - 1  

N- nominal rate, R-real rate, F- inflation  

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real rate of return = 0.1093 × 100 = 10.93%

real rate of return= 10.93%

8 0
3 years ago
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