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laiz [17]
2 years ago
13

Last year, Green Corporation incurred the following expenditures in the development of a new plant process:

Business
1 answer:
zloy xaker [14]2 years ago
4 0

Answer:

$50,400

Explanation:

Calculation to determine the amount of the deduction for the current year

First step is calculate the Research and experimental costs

Salary $250,000

Materials $90,000

Utilities $20,000

Depreciation $18,000

Research and experimental costs $378,000

($250,000+$90,000+$20,000+$18,000)

Now let determine the amount of the deduction for the current year

Current year deduction = $378,000/60 * 8

(Note that May-December will give us 8 months)

Current year deduction = $50,400

Therefore the amount of the deduction for the current year is $50,400

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Consider the following explanations and calculations

Explanation:

part 1

a)  KTZ sold an office building for $85,000 in cash. It originally bought the office building seven

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Profit on sale of office building= $85000- $45000= $40000

As per section 1231, out of profit of $40,000, amount of $14000, i.e till the amount of depreciation will be an ordinary income and $26000 (40000-14000) will be considered capital income.

b)

KTZ sold another machine for $6,200. It originally purchased this machine six months ago for

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c)

KTZ sold some of its inventory for $5,000 cash. This inventory had a basis of $8,000

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d)

KTZ held stock in XYZ Corp., which had a value of $19,000 at the beginning of the year. That

same stock had a value of $25,230 at the end of the year.

Ans- Stock is treated as lower of market value or cost, hence no treatment, willl be shown at $19000

e)

KTZ sold a machine that it used to make computerized dies for $26,300 cash. It originally bought

the machine for $16,200 three years ago and has taken $4,000 depreciation

Ans- Bookvalue of computer- 16200-4000= $12,200

Profit= 26300- 12200= $14100

As per section 1231, out of profit of $14,100, amount of $4000, i.e till the amount of depreciation will be an ordinary income and $10100 (14100-4000) will be considered capital income.

part 2

Net section 1231 gain=26,000 + 10100= $ $36100

Ordinary gain= 14000+3000+4000= $21000

Ordinary loss= $ 1570

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3 years ago
This circle graph shows the results of a survey that asked people to identify their favorite type of music. What percent of peop
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Answer:

answer 45

Explanation:

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A government's comprehensive annual financial report (CAFR) is divided into three main sections. The statements, schedules, tabl
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Step wise detailed solution is given in the attached diagram

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2 years ago
A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is consid
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Answer:

CC100  has $31.25 per hour

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7 0
3 years ago
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