INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Kerianne paints landscapes, and in late 2018 placed four paintings with a retail price of $250 each in the Holmstrom Gallery. Kerianne’s arrangement with Holmstrom is that Holmstrom will earn a 20% commission onpaintings sold to gallery patrons. As of December 31, 2018, one painting had been sold by Holmstrom to gallerypatrons. How much revenue with respect to these four paintings should Kerianne recognize in 2018?
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Your Answer:
On July 1, 2017, Brent purchases a new automobile for $59,500. He uses the car 88% for business and drives the car
as follows: 11,500 miles in 2017, 28,750 miles in 2018, 32,200 miles in 2019, and 23,000 miles in 2020.
Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions:
If required, round your computations to the nearest dollar.
a. Brent uses the automatic mileage method.
Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table.
2017: S
2018: S_
2019: S
2020: $_
Brent's adjusted basis in the auto on January 1, 2021, is $_
b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance
cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2017 is as
follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).]
Compute his…
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