None Sarah calculated her profit for the year ended 31 December 20X8 as $70,000. During the year she acquired a machinefor $20,000 and she incorrectly expensed the entire amount. It is her policy to depreciate machine at a rate of 10%straight line.What will be the effect on her net asset as at 31 December 20X9?It will understated by $18,000It will be overstated by $2,000It will be understated by $16,000It will be overstated by $18,000

To determine the effect on Sarah's net assets as of 31 December 20x9, we need to assess the impact…

Answered: Sarah calculated her profit for the…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter11: Investor Losses

Section: Chapter Questions

Problem 41P

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Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 installing it. What is the accumulated depreciation on this machine at the end of three years?
What is the depreciable based of the machine?
Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for $30,000. Calculate yearly depreciation using the double-declining-balance method.
Tom purchased the following assets for use in his business during the current year: Date Asset Cost 12 - Jan Car 24,000 4 - Feb Equipment 36,000 15 - Mar Qualified leasehold improvement 40,000 24 - Apr Computers 10, 000 Total 110, 000 Tom has $50,000 in profits before depreciation expense and has no other sources of income. Tom does not expect to purchase any new assets next year and hopes to grow sales, but who knows for sure? Give Tom two options as to how to depreciate the assets for tax. Select one option to recommend and justify your answer.
Tom purchased the following assets for use in his business during the current year: Date Asset Cost 12-Jan Car 24,000 4-Feb Equipment 36,000 15-Mar Qualified leasehold improvement 40,000 24-Apr Computers 10,000 Total 110,000 Tom has $50,000 in profits before depreciation expense and has no other sources of income. Tom does not expect to purchase any new assets next year and hopes to grow sales, but who knows for sure? Give Tom two options as to how to depreciate the assets for tax. Select one option to recommend and justify your answer.
A farmer bought a new harvester for $120,000. The harvester’s operating expenses averaged $10,000 per year but the harvester saved $40,000 per year in labor costs. It was depreciated over a life of 5 years using the 100% bonus depreciation method, assuming a salvage value of $30,000. The farmer sold the harvester for only $10,000 at the end of the fifth year. Given an income tax rate of 30% and a MARR rate of 5% per year, determine the after-tax net present worth of this investment.
The depreciated value of the washing machine can be modeled by the equation V= _______ + __________t. $ 1045 Washing machine is depreciated for tax purposes $ 95 per year. V = depricated value and t number of years since purchse date
A farmer bought a new harvester for $120,000. The harvesters operating expenses averaged $10,000 per year but the harvester saved $40,000 per year in labor costs. It was depreciated over a life of 5 years using the SYOD method, assuming a salvage value of $30,000. The farmer sold the harvester for only $10,000 at the end of the fifth year. Given an income tax rate of 30% and a MARR rate of 5% per year, determine the after-tax net present worth of the investment.
Now assume Florence sells another delivery van for $3,000. This van was purchased for $30,000 and was depreciated using the straight-line method over 10 years with no salvage value. Depreciation was last recorded 12/31/18 (bringing Accumulated Depreciation to $27,000 at that date), and the van is sold on 6/30/19. The entry to record the sale would include
In the financial year ended 31 December 2009, Sister Edith sold a car for $15,000. The car had been bought on 2 January 2006 for $45,000. Sister Edith depreciates motor vehicles on the reducing balance basis at a rate of 20% per annum. She charges a full year's depreciation in the year an asset is bought, and no depreciation in the year it is sold. What is the profit or loss on disposal of the car?
I want to correct answer general accounting question
Kristen Lu purchased a used automobile for $18,950 at the beginning of last year and incurred the following operating costs: Depreciation ($18,950 ÷ 5 years) Insurance $ 3,790 $1,900 $1,000 Garage rent Automobile tax and license Variable operating cost The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $3,790. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 24,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile Variable operating costs ? Depreciation 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs…

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