Question 1 of 15.<br> #1. Objective A: Left Turn<br> True False<br> Mark for follow up

E11-25 Book vs. Tax (MACRS) Depreciation) futabatei enterprises purchased a delivery truck on january 1, 2014, at a cost of $27,

IgorLugansk [536]

A. The preparation of the Income Statements for Futabatei Enterprises for years 2014 and 2015 is as follows:

<h3>Income Statement </h3>

For years ended December 31 2014 and 2015

2014 2015

Revenues $200,000 $200,000

Operating expenses 130,000 130,000

Depreciation 3,000 3,000

Income before tax $127,000 $127,000

B. <u>Taxable Income for 2014 and 2015</u>:

2014 2015

Income before tax $127,000 $127,000

Depreciation 3,000 3,000

MACRS depreciation (5,400) (8,640)

Taxable income $124,600 $121,360

C. The total depreciation to be taken over the useful life of the delivery truck is as follows:

Book Tax

Total depreciation $21,000 $27,000

D. The depreciation for book and tax purposes are usually different over the useful life of an asset because of the different depreciation rates and methods. Companies usually favor one of the depreciation methods for accounting purposes, but they are taxed by a different depreciation method, especially the MACRS method.

<h3>Data and Calculations:</h3>

Cost of delivery truck = $27,000

Estimated useful life = 7 years

<h3>Straight-line Depreciation Method:</h3>

Estimated salvage value =$6,000

Depreciable amount = $21,000 ($27,000 - $6,000)

Annual Depreciation = $3,000 ($21,000/7)

<h3>MACRS Tax Rate Table:</h3>

First year = $5,400 ($27,000 x 20%)

Second year = $8,640 ($27,000 x 32%)

Third year = $5,184 ($27,000 x 19.20%)

Fourth year = $3,110 ($27,000 x 11.52%)

Fifth year = $3,110 ($27,000 x 11.52%)

Six year = $1,556 ($27,000 x 5.76%)

Learn more about depreciation differences for financial accounting and tax purposes at brainly.com/question/15874429

6 0

3 years ago

Which of the following about associate's degrees are true? a. You may transfer part or all of your associate's degree courses to

grin007 [14]

C, associates degree doesn't offer financial aid

8 0

4 years ago

Read 2 more answers

The impact of inflation places ______________ and risk in the savings and borrowing relationships.

max2010maxim [7]

Answer:

The correct answer is the option C: uncertainty (the possibility that benefits may be less than expected).

Explanation:

To begin with, the concept of <em>inflation</em> refers to the sustained increase in the general price level of goods and services produced inside an economy and therefore consequently a reduction in the purchasing power per unit of money.

Secondly, it is understandable that the inflation causes that the uncertainess and riskness both take places in the saving and borrowing relationships due to the fact that the price that products and services will have in the future are not determinated and will probably increase in an unexpected way and therefore causing that benefits may be less than expected as well too.

3 0

3 years ago

What are the benefits and advantages of members when joining organizations like UNWTO, PATA, or ASIANTA?

NikAS [45]

The benefits and advantages of members when joining organizations like UNWTO, PATA, or ASIANTA include:

Economic growth: It should be noted that UNWTO is vital for the growth and the development of a country as it helps in the development of its tourism sector.

Environmental sustainability: The organizations are vital in helping their members engage in practices that'll help in the protection of their environment.

Tourism: The agencies are responsible for promoting acceptable and accessible tourism.

In conclusion, United Nations World Tourism Organization (UNWTO) is important in promoting tourism in a country.

Read related link on:

brainly.com/question/21979071

7 0

2 years ago

Increasing marginal opportunity cost means that the production possibility curve is: bowed out so that for every additional unit

zimovet [89]

Answer: BOWED OUT SO THAT FOR EVERY ADDITIONAL UNIT OF A GOOD GIVEN UP, YOU GET FEWER AND FEWER UNITS OF THE OTHER GOOD

Explanation:

The increasing marginal opportunity cost theory speaks of the additional cost that a company incurs for producing an additional good. At first more costs such as more raw materials and labour lead to more goods but it gets to a point where additional costs lead to less goods due to factors like redundancy i.e too many people doing the same thing.

The production possibility curve therefore measures the additional cost of production using the same resources by piting 2 goods against each other and checking what happens as one is continually given up for the other.

It is for this reason that it is bowed out because it shows that the more you give up one, the less of the other you receive.

It doesn't mean you don't gain the other good, you do but just less of it.

I have attached an example for you.

From the graph you see that giving up 25 units of food (100 -75) at point C gave 100 units of clothing.

But when a further 25 units of food were given up at point D, only 50 additional units of clothing was acquired.

This shows that you gain fewer of one good as you give up the other.

4 0

3 years ago

Question 1 of 15. #1. Objective A: Left Turn True False Mark for follow up