10.11.121314.Which accounting method for depreciation would you use if you wantedyour taxes to be the lowest:15.A.B.C.D.A.B.C.D.In times of rising prices, which inventory method would you want to use ifyou were an CEO interested in issuing a new stock offer:ABCD200% Double Declining Balance.MACRSA.Straight Line Depreciation.Sum of the years Digits.Which method is used to expense operating assets?DepletionAmortizationC.DepreciationD. Write off methodB.LIFOAverageFIFONone of the aboveWhat is the LCM rule concerning the valuation of inventories.A. Last in cost rule.B. Lower of cost or MACRSC. A rule that requires a company to value its inventory at market valueIf its market price is lower than its cost.D. Can be used in place of FIFO.SHORT ESSAYWhy is the perpetual inventory system superior to the periodic system forbusiness purposes?What are the two allowance methods used to account for bad debts.Explain who would be most interested in each and why. 16.17.Why is accounting important to the business wouldWhich accounting method should be used to meet GAAP requirementsand why when recording a sale when a cash discount is offered?

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10. Which accounting method for depreciation would you use if you wanted your taxes to be the lowest: A. B. C. D. 200% Double Declining Balance. MACRS Straight Line Depreciation. Sum of the years Digits.

10. Which accounting method for depreciation would you use if you wanted your taxes to be the lowest: A. B. C. D. 200% Double Declining Balance. MACRS Straight Line Depreciation. Sum of the years Digits.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A2 Can you please show all steps.
The Allowable Business Investment Loss is __________ of the realized Business Investment Loss in a given year. Question 2 options: a) Same amount b) One-third c) One-half d) One-fifth
3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative. EOY ВТСР Depreciation Deduction Тахable Income АТCF Income Таxes - 20,000 16,000 16,000 16,000 16,000 16,000 18,000 3,000 3,000 3,000 3,000 3,000 3,000 13,000 13,000 13,000 13,000 13,000 15,000 - 6,500 - 6,500 - 6,500 - 6,500 - 6,500 - 7,500 - 20,000 9,500 9,500 9,500 9,500 9,500 1 3 4 6. 10,500 a) Find answers to the below questions What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? i. ii. iii. iv. What is the method used for depreciation deduction? What is the book value at the end of useful life? V. b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at an after-tax MARR of 11%.
Having trouble with this question. Please advise. Thanks
When using 100% bonus depreciation and claiming the depreciation deduction in the first quarter (thus moved to Year 0), the after-tax rate of return matches the before-tax rate of return (based on federal taxes). O True O False
10. Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.) Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $342,900 72 $ 5.1% $
Pertinent information for two alternatives A and B is shown below. If i=10 % / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B 150,000 225,000 100,000 100,000 30,000 10,000 15,000 22,500 ADS-6: Years Recovery Period GDS: 5-Years Recovery Period Basis, $ Gross Income (Gl), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method The CFAT at the end of year 7 for Alt. A is less than $50,000. True O False
What are the after tax proceeds of the property sale? Answer is a three digit number with the correct symbol. Tax rate 30% Corporate net income - $200 Depreciated tax value of property sold - $150 Sale proceeds from sale of property - $450 Capital expenditures - $142.25
b. What effect would a $10.2 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.04 million per year for five years? What effect would it have on next year's earnings? (Select all the choices that apply.) A. Capital expenses do not affect earnings directly. However, the depreciation of $2.04 million would appear each year as a capital expense. B. Capital expenses do not affect earnings directly. However, the depreciation of $2.04 million would appear each year as an operating expense. C. With a reduction in taxes of 25% × $2.04 million = $0.51 million, earnings would be lower by $2.04 million - $0.51 million = $1.53 million for each of the next 5 years. D. With an increase in taxes of 25% × $2.04 million = $0.51 million, earnings would be higher by $2.04 million - $0.51 million = $1.53 million for each of the next 5 years.
10.Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets True or False? 11. For the hobby farmer, deductible farming losses for a year are restricted to $2,500, plus one-half of the next $30,000. True or False?
H6. Show proper step by step calculation