Fundamental Managerial Accounting Concepts
7th Edition
ISBN: 9780078025655
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 14Q
To determine
The levels of costs that is relevant in special order decisions.
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What is the payable deferral period on these financial accounting question?
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and
Table 2.)
Date Placed in
Asset
Service
Original
Basis
Machinery
October 25 $ 120,000
Computer equipment
February 3
47,500
Used delivery truck*
August 17
Furniture
April 22
60,500
212,500
*The delivery truck is not a luxury automobile.
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation
and elects out of §179 expense?
Depreciation
$ 440,500
Lina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased
during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including
§179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus
depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1,
Table 2, and Exhibit 10-10.)
e. The vehicle cost $85,000, and she used it 20 percent for business.
Year
Depreciation
deduction
2024
2025
Chapter 6 Solutions
Fundamental Managerial Accounting Concepts
Ch. 6 - Prob. 1LOCh. 6 - Make appropriate special order decisions.
Ch. 6 - Prob. 3LOCh. 6 - Prob. 4LOCh. 6 - Prob. 5LOCh. 6 - Prob. 6LOCh. 6 - Prob. 7LOCh. 6 - Prob. 1QCh. 6 - Prob. 2QCh. 6 - Prob. 3Q
Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Prob. 10QCh. 6 - Prob. 11QCh. 6 - Prob. 12QCh. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 18QCh. 6 - Prob. 19QCh. 6 - Prob. 20QCh. 6 - Prob. 1ESACh. 6 - Prob. 2ESACh. 6 - Prob. 3ESACh. 6 - Prob. 4ESACh. 6 - Prob. 5ESACh. 6 - Prob. 6ESACh. 6 - Prob. 7ESACh. 6 - Prob. 8ESACh. 6 - Prob. 9ESACh. 6 - Prob. 10ESACh. 6 - Prob. 11ESACh. 6 - Prob. 12ESACh. 6 - Prob. 13ESACh. 6 - Prob. 14ESACh. 6 - Prob. 15ESACh. 6 - Prob. 16ESACh. 6 - Prob. 17ESACh. 6 - Prob. 18ESACh. 6 - Prob. 19ESACh. 6 - Prob. 20ESACh. 6 - Prob. 21ESACh. 6 - Prob. 22ESACh. 6 - Prob. 23PSACh. 6 - Prob. 24PSACh. 6 - Prob. 25PSACh. 6 - Prob. 26PSACh. 6 - Prob. 27PSACh. 6 - Prob. 28PSACh. 6 - Prob. 29PSACh. 6 - Prob. 30PSACh. 6 - Prob. 31PSACh. 6 - Prob. 32PSACh. 6 - Prob. 1ESBCh. 6 - Prob. 2ESBCh. 6 - Prob. 3ESBCh. 6 - Prob. 4ESBCh. 6 - Prob. 5ESBCh. 6 - Prob. 6ESBCh. 6 - Prob. 7ESBCh. 6 - Prob. 8ESBCh. 6 - Prob. 9ESBCh. 6 - Prob. 10ESBCh. 6 - Prob. 11ESBCh. 6 - Prob. 12ESBCh. 6 - Prob. 13ESBCh. 6 - Prob. 14ESBCh. 6 - Prob. 15ESBCh. 6 - Prob. 16ESBCh. 6 - Prob. 17ESBCh. 6 - Prob. 18ESBCh. 6 - Prob. 19ESBCh. 6 - Prob. 20ESBCh. 6 - Prob. 21ESBCh. 6 - Prob. 22ESBCh. 6 - Prob. 23PSBCh. 6 - Prob. 24PSBCh. 6 - Prob. 25PSBCh. 6 - Prob. 26PSBCh. 6 - Prob. 27PSBCh. 6 - Prob. 28PSBCh. 6 - Prob. 29PSBCh. 6 - Prob. 30PSBCh. 6 - Prob. 31PSBCh. 6 - Prob. 32PSBCh. 6 - Prob. 1ATCCh. 6 - Prob. 2ATCCh. 6 - Prob. 3ATCCh. 6 - Prob. 4ATCCh. 6 - Prob. 5ATCCh. 6 - Prob. 6ATCCh. 6 - Prob. 7ATCCh. 6 - Prob. 1CP
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- Lina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) b. The vehicle cost $85,000, and business use is 100 percent. Year Depreciation deduction 2024 2025arrow_forwardWhat adjusting journal entry should be recorded to account for the expiration of this asset on these financial accounting question?arrow_forwardAssume that ACW Corporation has 2024 taxable income of $1,720,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Placed in Service September 12 Basis $ 492,000 Computer equipment Delivery truck February 10 August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total 92,000 115,000 1,402,000 $ 2,101,000 a. What is the maximum amount of §179 expense ACW may deduct for 2024? b. What is the maximum total depreciation that ACW may deduct in 2024 on the assets it placed in service in 2024? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2024 b. Maximum total deductible depreciation for 2024arrow_forward
- Solve fastlyarrow_forwardWhat is the return on common stockholders equity for these financial accounting question?arrow_forwardEvergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. What is the allowable depreciation on Evergreen's property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? Depreciation $ 69,096arrow_forward
- Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 40,500 March 1-March 30 wages March 30 6,550 March 1-March 30 rent Stock issuance costs March 30 2,850 April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. April 1 May 30 24,000 16,375 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start-up costs Organizational expendituresarrow_forwardWhat is the return on investment of this financial accounting question?arrow_forwardLast Chance Mine (LCM) purchased a coal deposit for $2,918,300. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.24 million, $13 million, and $11 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($11,400), $550,000, and $502,500, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows: (1) Tons of Coal 18,950 Depletion (2) Basis (2)(1) Rate $2,918,300 $154.00 Tons Extracted per Year Year 1 4,500 Year 2 8,850 Year 3 6,600 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Percentage Depletion Year 1 Year 2 Year 3 $ 0arrow_forward
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