gross domestic product understates the total production of final goods and services because of the omission of

Alice purchases a rental house on August 22, 2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocabl

Vlada [557]

Answer:

$1,364

Explanation:

According to the MACRS a rental house is classified as the 27.5 year residential property. It is the first year after purchase and August is the 8th month of 2019 and so according to the MACRS depreciation table for the residential property the rate applicable for this property is 1.364%. Maximum depreciation deduction for the year 2019 is

Cost of House = $174,000

Cost of Land = $74,000

Cost of Building = $100,000

As depreciation on land is not applicable because it does not depreciate. The depreciation will be calculated using Building value

Depreciation = $100,000 x 1.364% = $1,364

6 0

4 years ago

Kaitlyn purchased one share of Northwest Energy stock for $200; one year later she sold that share for $400. The inflation rate

Law Incorporation [45]

Answer:

The tax on Kaitlyn's capital gain was $100

Explanation:

In order to calculate the tax on Kaitlyn's capital gain we would have to calculate first the Nominal capital gain as follows:

nominal capital gain=$400 - $200

nominal capital gain= $200

Therefore, tax on Kaitlyn's capital gain= tax percentage×nominal capital gain

=50%×$200

=$100

The tax on Kaitlyn's capital gain was $100

6 0

3 years ago

Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, th

olga nikolaevna [1]

Answer:

31.8%

Explanation:

Simulation is imitation of a situation that represents its operations overtime. Simulation is used for performance tuning. The use of simulation in business is gaining significance. Simulation is used to analyze current situation and predict future. Strassel is using 1000 trials for a bid of $135,000. The estimated probability that Strassel will get the property at a bid of $135,000 is 31.8%.

7 0

4 years ago

Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

AnnZ [28]

Answer:

Order processing= $846.67 per order

Explanation:

Giving the following information:

Activity costs:

Wages and salaries= 420,000

Depreciation= $170,000

Occupancy= $190,000

Activity Cost Pools:

Order Processing:

Wages and salaries= 0.3

Depreciation= 0.25

Occupancy= 0.45

Order processing 300 orders

First, we need to calculate the total overhead cost for order processing:

Wages and salaries= 0.3*420,000= 126,000

Depreciation= 0.25*170,000= 42,500

Occupancy= 0.45*190,000= 85,500

Total= $254,000

Now, using the following formula, we can determine the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order processing= 254,000/300= $846.67 per order

8 0

3 years ago

Match each the following steps in the litigation process with its best description or example.

Lilit [14]

Answer:

The options were incomplete! All of the options, their right order and description is explained below.

Complete Question:

Match each the following steps in the litigation process with its best description or example.

A. Alternate dispute resolution

B. Deposition

C. Judge decides

D. Defenses raised

E. Starts the litigation

1. Discovery

2. Bench trial

3. Complaint

4. Mediation

5. Answer

Matching:

3. Complaint -> E. Starts the litigation

5. Answer -> D. Defenses raised

1. Discovery -> B. Deposition

4. Mediation -> A. Alternate dispute resolution

2. Bench trial -> C. Judge decides

Short Explanation:

Suppose A is plaintiff and B is defendant.

A files a complaint saying that B has done something wrong to me, to which B Answers and denies the claim of A. Then both parties A and B start to discover evidence against each other. Mediation usually happens at this stage when both parties know their position. If mediation fails then bench trial starts where a civil judge decides the verdict.

Detailed Explanation:

The litigation (means a case or lawsuit) process starts when a complaint is filed by a plaintiff (person who brings a case against someone in court of law) stating the alleged wrongdoings done by the defendant. He claims to be given relief against the wrongs done by the defendant.

Then defendant responds with an Answer in which he clarifies or point out incorrect allegations or denies all the accusations one by one made against him. If defendant finds a strong case against himself then he goes for mediation otherwise he proceeds towards discovery.

Discovery is the legal term used for finding and gathering of all sort of evidence or information. Examples of discovery are interrogations, depositions, examination reports.

Mediation is the process of dispute resolution where both parties appear in front of a neutral mediator and try to resolve the issue without going to trial. Everyone tries to avoid going to trail because it is expensive and time consuming therefore, many lawsuits get resolved without going into the trial.

When mediation fails then the final solution is to go for a trail. A bench trial means a trial in which a judge decides the verdict (no jury).

Note: Mediation means settlement and it can happen at any stage when both parties agree to a certain solution,

5 0

4 years ago