Based on the trust amount and the present value of income, the journal entry in Mansfield's books is:
Date Account title Debit Credit
Beneficiary Interest in Trust $500,000
Contributions with Donor $500,000.
Imposed Restrictions
<h3>What journal entry would record the transaction?</h3>
The beneficiary interest account should be debited with the $500,000 that was used to establish the trust.
It should be credited to the Contributions account but only an account that accounts for the restrictions on usage.
Find out more on journal entries at brainly.com/question/14279491.
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Answer:
Right
Explanation:
Right if you expect tax rates to go up or because right now you are starting your career and your tax bracket would be lower now than what it will be later on. When you are older and in retirement, you would want to save your money and not have to worry about any taxes.
Jake Skinner used a "Single Lump Sum Credit", which means he pays a single sum instead of paying over time.
Answer:
The correct answer is letter "D": Straight-line depreciation is higher than double-declining-balance depreciation in the later years.
Explanation:
With the straight-line approach, depreciation is distributed equally during the life cycle of an asset. While using the double-declining-balance approach, a higher amount of depreciation is allocated during the first years while the asset is highly used and the depreciation reduces as long as the life of the asset ends.
Thus, <em>given a certain asset, the depreciation with the double-declining-balance will be minimum at a later age but evenly distributed using the straight-line method. Then, the amount of depreciation with the straight-line method is likely to be higher.</em>
