Answer:
(A) Half-year and (D) Half-year
Explanation:
MACRS stands for Modified Accelerated Cost Recovery System and is the most commonly-used tax depreciation method .Without getting into too much detail, MACRS is accelerated depreciation that allows for a larger deduction while the asset is still new. By comparison, straight-line depreciation gives you the same deduction year after year over the asset's useful life. MACRS cannot be used for intangible property, nor can it be used to depreciate. MACRS convention determines the number of months for which you can claim depreciation during a partial year, either when you first placed the asset in service or when you disposed of it. The mid-month convention only applies to residential rental property, nonresidential real property, and railroad grading or tunnel bore. It simply means that you get a half month's worth of depreciation no matter when that asset was placed into (or taken from) service during that month, whether that was at the beginning, middle, or end of the month. The half-year convention works the same way but instead of the month it goes by the year. In other words, you'll get 6 months' depreciation if the asset was placed into service or disposed of during the year, no matter if it was in January or December.
Answer:
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
Explanation:
First determine the units sold
Units Sold = Total Purchases - Units in hand
= 1,410 units - 270 units
= 1,140
Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.
FIFO
Means First in First Out
Cost of the ending inventory = 270 x $9.00 = $2,430
LIFO
Means Last in First Out
Cost of the ending inventory = 270 x $6.00 = $1,620
Conclusion
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
The answer to this question is a Request for Proposal. The request for proposal or RFP is a document requested and being sent to various suppliers / sub-contractors in order to present their company's services and cost of goods or services. It is also a document that is presented thru a bidding process in order to get the project from a certain company.
Answer:
The corporation must recognize a $10,000 loss.
Explanation:
The last activity that a corporation must perform upon liquidation is to distribute property, assets or cash to its shareholders. The adjusted basis for any property or assets handed out in a complete liquidation is the fair market value of the property or assets.
In this case, the corporation's property had a basis of $40,000 but a fair market value of $30,000, so the distribution was done using the fair market value of $30,000.
Answer:
$13,000,000
Explanation:
Given that,
Total Book Value of Equity = $20,000,000
Common stock outstanding = 1,000,000 shares
Selling price per share = $33.00
Market value of equity:
= Selling price per share × Shares outstanding
= $33.00 × 1,000,000
= $33,000,000
O'Brien's MVA:
= Market value of equity - Total Book Value of Equity
= $33,000,000 - $20,000,000
= $13,000,000