A company purchases a piece of machinery This machinery is now the company’s Capital
Answer:
$477,000
Explanation:
Preparation of Amy's capital account rollforward from the beginning to the end of the tax year.
Capital account balance, beginning of year $300,000
Add Amy's share of:
Taxable income $200,000
($400,000*50%)
Interest income $2,000
($4,000*50%)
Net short-term capital Loss ($3,000)
($12,000-$6,000*50%)
$499,000
Less:
Charitable contribution $2,000
($4,000*59%)
Cash distribution to Amy $20,000
($22,000)
Amy's capital account end of year $477,000
($499,000-$22,000)
Therefore Amy's capital account rollforward from the beginning to the end of the tax year will be $477,000
Answer:
b. is still 1,000 pounds.
Explanation:
profit-maximising level of output is found where marginal cost = marginal revenue
if fixed cost increases, the marginal cost still remains unchanged. so, the profit-maximizing level of output remains unchanged
Answer:
Inventory will be $14,000 higher than expected.
Explanation:
Selling goods on consignment means that goods that do not belong to a company is being sold by them. Consignment is when the owner of goods gives the right to custody or care of the goods while retaining ownership of the same.
In this case Global has $14,000 worth of consigned goods in its warehouse that it does not own. So the total inventory they will have will be $14,000 above what they are expecting in their own stock.
Answer:
a. physical deterioration.
Explanation:
Depreciation is the decrease or loss of value of an asset. Money, plants and machinery are subject to a decline in value due to various reason. Appreciation is gain in value and therefore, an opposite of depreciation.
Physical depreciation is the loss of value due to aging, or wear and tear. It arises from the usage of the asset or collusion. Physical depreciation is naturally occurring. It begins as soon the asset is purchased and placed under its intended use.
The cost of depreciation is the difference between an assets cost price and the estimated value after wear and tear.