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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A personal computer that originally cost $5,000 has no estimated salvage value and was depreciated at the rate of 20% a year. At the end of the third year, the computer was sold for $1,500 cash. The transaction would result in a a. loss of $1,500. Ob. gain of $250. Oc. loss of $250. Od. gain of $1,500.
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?
I want answer this question
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.
Please help me
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.
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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
Expert need your advice
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

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