Answer:
For tax purposes, assets that are converted to business use from personal, should use the lesser of the Fair Market Value (FMV) at the time of conversion or the cost of the asset.
Computer.
The FMV is less than the purchase price so the depreciable basis is:
= $800
Printer
The FMV is less than the purchase price so the depreciable basis is:
= $150
Desk
The FMV is less than the purchase price so the depreciable basis is:
= $1,000
File Cabinet
The purchase price is less than the FMV so the depreciable basis is:
= $200
Answer: c) economies of scale; increase
Explanation:
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to economies of scale and increase real GDP per capita in the domestic country.
When this industry choose to break out of this limitation placed on them due to the small size of market in their country, the idea of opening trade to the world market would lead to reduction in production costs since they now have a larger market (and thus produce more). Also, the real GDP per capita in the domestic country should increase since the company in this domestic nation has expanded its production to the world market.
NOTE:
Economies of scale occur when the cost of production is now reduced because there is an increase in a company's production.
Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
