In 2022, Firm L purchased machinery costing $21,300 and elected to expense the entire cost under Section 179. Required: a. How much of the expense can Firm L deduct if its taxable income before the deduction was $58,000. b. How much of the expense can Firm L deduct if its taxable income before the deduction was $19,200. c. How much of the expense can Firm L deduct if its net operating loss (NOL) before the deduction was $5,016. Complete this question by entering your answers in the tabs below. Required A Required B Required C How much of the expense can Firm L deduct if its taxable income before the deduction was $58,000. Deduction

In 2022, Firm L purchased machinery costing $21,300 and elected to expense the entire cost under Section 179. Required: a. How much of the expense can Firm L deduct if its taxable income before the deduction was $58,000. b. How much of the expense can Firm L deduct if its taxable income before the deduction was $19,200. c. How much of the expense can Firm L deduct if its net operating loss (NOL) before the deduction was $5,016. Complete this question by entering your answers in the tabs below. Required A Required B Required C How much of the expense can Firm L deduct if its taxable income before the deduction was $58,000. Deduction

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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On 1 July 2020, GTW Ltd purchased a machinery at $120,000. GTW Ltd adopts the cost model for the machinery. The machinery is depreciated on a straight-line basis over a 6-year period with nil residual value. On 30 June 2021, the fair value of the machinery is $90,000 and the recoverable amount is $95,000. The machinery has 5 years remaining useful life. On 30 June 2022, the recoverable amount of the machinery is assessed to be $83,000. Required: What are the journal entries in accordance with the requirements of AASB 116 Property, Plant and Equipment at 30 June 2022?
An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2021 had a fair value of P4,800,000.On December 31, 2021 the property was sold for net proceeds of P4,500,000. The entity used the cost model to account for investment property. What is the gain to be recognized for 2021 regarding the disposal of the property? a. 900,000 b. 500,000 c. 800,000 d. 700,000
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102.
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