Max purchased new computer equipment with a capital cost of $87,000 while he disposed of $22,000 in other computer equipment (where the $22,000 is the lesser of capital cost and proceeds of disposition). The balance in Max's class 8 CCA account on January 1 was $230,000. Given these transactions, what is the closing balance of Max's Class 8 CCA account? The CCA rate for class 8 is 20%. OA) $236,000. OB) $295,000. OC) $242,500. OD) $208,000.

Max purchased new computer equipment with a capital cost of $87,000 while he disposed of $22,000 in other computer equipment (where the $22,000 is the lesser of capital cost and proceeds of disposition). The balance in Max's class 8 CCA account on January 1 was $230,000. Given these transactions, what is the closing balance of Max's Class 8 CCA account? The CCA rate for class 8 is 20%. OA) $236,000. OB) $295,000. OC) $242,500. OD) $208,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Want Answer please provide
Margaret Lindley paid $15,190 of interest on her $301,900 acquisition debt for her home (fair market value of $501,900), $4,190 of interest on her $30,190 home-equity debt used to buy a new boat and car, $1,190 of credit card interest, and $3,190 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,190 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year? $23,760 $22,570 $19,380 $18,380 None of the choices are correct.
Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)
Please do not give solution in image format ?
On January 1, 2022, Don Buchanan purchases a business that he will carry on as a sole proprietor. The purchase price includes $60,000 for goodwill. The business has a fiscal period that ends on December 31 and, for 2022, Don claims the maximum CCA. On January 1, 2023, the business is sold in an arm's length transaction with $82,000 paid for the goodwill. The affect of the sale of the goodwill is to increase net income for 2022 by: a. $14,000. b. $13,500. c. $15,500. d. $11,000.
Levi Ackerman decided to resign from his current job and start his own café. He is investing $50,000 of his own money and took out a business loan worth $100,000. Levi handed in his resignation in May 2021, purchased and fully paid for an established café costing $109,000 in June 2021, and plans to open shop on 1 July 2021. Additional information: • Annual depreciation for the non-current assets taken over from the previous owner totals $18,000. Additional equipment costing $5,000 were purchased and paid for in June. These equipment are depreciated on a straight-line basis and have an expected useful life of ten years with no residual value. Assume that monthly payment for the loan is $780, of which $240 relates to interest payment and the remainder relates to principal repayment. One month's credit is received from inventory suppliers and Levi will utilise this payment term, paying the amounts owed one day before it is due. Inventories costing $4,000 are acquired in June 2021.…
On January 1st, 2008, ABC Inc. purchased a copper mine for $400,000. The company is required by provincial law to restore the land on which the mine is located to its initial condition at the end of the mine's ten year useful life. Restoration costs are estimated to be $35,000. ABC is subject to an interest rate of 5%. Prepare the journal entries required on January 1st and December 31st, 2008. Round all entries to the nearest dollar.
Metlock, Inc., spent $48,600 in attorney fees while developing the trade name of its new product, the Mean Bean Machine. Prepare the journal entries to record the $48,600 expenditure and the first year's amortization, using an 6-year life. Use the account title "Trade Names". (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record expenditure of trade names) (To record amortization expense)
Piper's Pizza sold baking equipment for $27,000. The equipment was originally purchased for $74,000, and depreciation through the date of sale totaled $53,000. Record the gain or loss on the sale of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
In year 0, Longworth Partnership purchased a machine for $57,500 to use in its business. In year 3, Longworth sold the machine for $38,800. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $27,300. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $70,000? Please don't provide answer in image format thank you
[The following Information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero If applicable. b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 Instead? Note: Round other Intermediate computations to the nearest whole dollar amount. Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amount
Margaret Lindley paid $15.100 of interest on her $301,000 acquisition debt for her home (fair market value of $501,000 $4,100 of interest on her $30100 home equity debt used to buy a new boat and cac $1,100 of credit card interest, and $3,100 of margin interest for the purchase of stock Assume that Margaret Lindley has $10,100 of interest income this year and no investiment expenses. How much of the interest expense may she deduct this year? Multiple Choice O O O $23,400 $22.300 $19,200 $1,200 None of the choices are correct