On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Sec. 179 deduction is taken and you elect out of 100% bonus, what is your firm’s maximum 2018 deduction for depreciation? $2,000 $1,200 $1,100 $869

Q: On January 1, 2021, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…

A: Intangible Assets:  Intangible assets are the long-term assets having no physical existence.…

Q: Use the MACRS to calculate the yearly depreciation allowances and book values for a firm that has…

A: Given information is: A firm that has purchased $150,000 worth of office equipment that does not…

Q: GAMAY Corporation sold a machine on July 1, 2021. The cash price of the machine is P79,000. The…

A: The answer is as fallows

Q: NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent…

A: Ans. 0

Q: March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent…

A: GAAP- Generally Accepted Accounting Principles. GAAP is a set of accounting standards, regulations,…

Q: On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is…

A: Present value of future payment can be calculated by applying the appropriate rate of interest or…

Q: On August 1, 2021, FAITH Inc purchased a new machine on a deferred payment basis. A down payment of…

A: Capitalized cost of Machine: When constructing or acquiring fixed assets, capitalized expenses are…

Q: On January 1, 2021, Gringo Company had capitalized cost of P5,000,000 for a new computer software…

A: Amortization of Intangible Assets: The practice of deducting the cost of an intangible asset over…

Q: Ivanhoe Company owes $179,000 plus $15,800 of accrued interest to Shamrock State Bank. The debt is a…

A: Debt settlement: A way to settle the debt or resolve the debt by allowing the debtor to pay a lump…

Q: In 2020, ABC Machine Company spent P352,000 on research and development costs for an invention. This…

A: The expenses related to the patent will be the amortization expense and other expenses incurred…

Q: 2. The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a…

A: Book value is the value of an asset after depreciation is recorded on it. When an asset is sold,…

Q: 8) On January 1, 2019, Seabreeze Construction Company owned 4 dump trucks, 2 excavators and other…

A: The assets of the company will be used by the company for a long period of time, hence the…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P800,000 and with…

A: Book value of furniture and fixtures = Cost of furniture and fixtures -Accumulated depreciation…

Q: A company buys an oil rig for P1,200,000 on January 1, 2020. The life of the rig is 12 years and the…

A: Annual Depreciation under Straigt Line method =(Cost of the asset - Estimated residual value)/Useful…

Q: A company, whose earnings put it in the 25% marginal tax bracket, is considering the purchase of a…

A: Solution: The present value of cash outflow Year 0 - Purchase price (initial) = $25,000 Depreciation…

Q: A company buys an oil rig for P1,000,000 on January 1, 2020. The life of the rig is 10 years and the…

A: Introduction: When the oil rig is purchased, it should be accounted at the cost at which it was…

Q: Amazon purchased a piece of land for $5 million and plans to build a $25 million distribution…

A: Introduction: Depreciation is the process of calculating the cost of a measurable or tangible asset…

Q: Celia Corp. has estimated that total depreciation expense for the year ending 12/31/20 will amount…

A: The correct option is option “C”.

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Solution: Capitalized cost of machine = Cash equivalent price of machine + Installation cost

Q: 1)  In 2018 you paid $1 million for a new widget-making machine for your widget-making business.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On July 1, 2021, Discipline Company obtained a contract to construct a building which is estimated…

A: Solution: Contract price when contract was entered into on July 1 2021 = Total billings to client +…

Q: Christopher Company borrowed $6 million at 11% on January 1, 2020, to build a new building. The…

A: Formula: Interest expense = Weighted average expense x borrowing rate Multiplying weighted average…

Q: Power Company incurred P3,000,000 (P800,00 in 2019 and P2,200,000 in 2020) to develop a computer…

A: The expenditure on research on intangible asset is treated as expense and should be charged to…

Q: On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork.…

A: Book value is the value at which the asset is originally purchased or the value after depreciation.…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: amount of provision on product warranty

A: Provision of warranty means the estimate of liability required to meet the repair and maintenance…

Q: On December 31, 2012, BTS Company sold a machine to GOT Co and simultaneously leased it back for one…

A: Deferred revenue is the liability on the balance sheet of the company, which states the prepayment…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms…

A: Accumulated depreciation is the total amount of depreciation which is charged on the machine.…

Q: Please answer e, d and 1 Princess Town Insurance Inc., located in a country that has a capital…

A:

Q: Amazon purchased a piece of land for $5 million and plans to build a $25 million distribution…

A: The term depreciation refers to the method of calculation used to allocate the cost of a tangible or…

Q: . In 2018 you paid $1 million for a new widget-making machine for your widget-making business.…

A: Calculation of the income (if any):   Since the calculated value is positive there is an income.

Q: he new machinery, on the other hand, is expected to have a residual worth of $5,000. On that date,…

A: As per rule, allowed to answer first question and post the remaining in the next submission.

Q: A company buys a £300 computer in Year 1 and capitalizes the expenditure. Th e computer has a useful…

A: Straight line method of depreciation is the most straightforward approach that implies that the…

Q: On March 25, 2020, Blue Steel co. purchased a new extrusion machine for Php 3,344,015 with an…

A: Formula: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) /…

Q: Barkley Corp. obtained a trade name in January 2016, incurring legal costs of $82,000. The company…

A: Carrying value on December 31, 2018 = ($88,000 - $10,250 + $19,000 - $13,821) = $82,929 Expected…

Q: 6) A company is considering purchasing a new automated machine that is expected to generate an…

A: Net present value refers to the present value on the basis of a future stream of payments. It…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Cost of equipment = $ 18,200,000 Depreciated value = 75% Book value now = Cost of…

Q: 7- Suppose that a company purchases a computer to be used in the manufacturing department at the…

A: Depreciation is computed on assets from various methods. Under accelerated method, depreciation is…

Q: On January 1, 2020, Olkawa Company had capitalized cost of P8.000,000 for a new computer software…

A: Amortisation means allocation of cost of intangible assets over the useful life or period.

Q: Your company has to liquidate some equipment that is being replaced. The originally cost of the…

A: After-tax salvage value: The Salvage value of the equipment after the end of the life of the…

Q: Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of…

A: A cost is the worth of money that has been used up to create something or supply a service and is…

Q: february 5, 2020, diamond company purchased a new machine on a deferred payment basis. a down…

A: Installment+Downpayment=P11,00,000.. Installation costs:::P30,000... Interest…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Net cost of Equipment = Cost of equipment - Depreciation = $13,500,000 - $13,500,000 x 65% =…