Answer:
Annual Depreciation expense = $15695.7692 rounded off to $15695.77
Explanation:
We first need to calculate the cost of the equipment. The cost at which an equipment or asset should be recorded should include all the costs incurred to bring the asset into the place and condition necessary for its use as intended by the management. Thus the cost of the equipment will be,
Cost = 165891 + 42172
Cost = $208063
Now we can calculate the depreciation expense per year based on the straight line depreciation method using the following formula,
Annual Depreciation expense = (Cost - Salvage Value) / Estimated useful life
Annual Depreciation expense = (208063 - 4018) / 13
Annual Depreciation expense = $15695.7692 rounded off to $15695.77
Answer:
$12,620
Explanation:
Cost of Direct materials of Job 99 = $70 x 100 = $7,000
Cost of Direct labour of Job 99 = $5 x 100 = $5,000
Overhead Expenses of Job 99 = $62 x 10 = $620
Total job cost for Job 99 = 7000 + 5000 +620 = $12,620
Answer:
$1,260,000
Explanation:
Given that,
Annual depreciation expense = $3.6 million
Marginal corporate tax rate = 35%
Average corporate tax rate = 30%
The reason to use marginal tax shield is that the firm would save additional amount it would have paid in taxes.
Value of the depreciation tax shield:
= Marginal corporate tax rate × Annual depreciation expense
= 35% × $3,600,000
= $1,260,000
Therefore, the value of the depreciation tax shield on the company's new project is $1,260,000.
Answer:
He does not need to file a tax return
Explanation:
International students on F, J, M, or Q visas are considered “exempt individuals,” which means you are excused from the Substantial Presence Test for the first 5 years you are in the US if you are an international student. A substantial Presence test is the criterion used by the IRS (Internal Revenue Service) in the US to determine if an individual is a citizen for tax purposes or not. Since Wei came into the United States in 2014, and this is 2017 he has not yet exhausted the 5 year period.
When the auditors obtain an understanding of internal control for the financing cycle, documentation will frequently include a written description as well as a(n): Summary of tests of controls.
Why is it important for an auditor to obtain an understanding internal control?
The auditor should obtain an understanding of how IT affects control activities that are relevant to planning the audit. Some entities and auditors may view the IT control activities in terms of application controls and general controls.
When assessing the competence of the internal auditors An auditor should obtain information about the?
When assessing the competence of the internal auditors, an independent CPA should obtain information about the: quality of the internal auditors' working-paper documentation.
What are the specific duties imposed on the auditor regarding internal control and internal audit?
Assess the company's risks and the efficacy of its risk management efforts. Ensure that the organization is complying with relevant laws and statutes. Evaluate internal control and make recommendations on how to improve. Identifying shortfalls or gaps in processes
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