Assets) 1. At January 1‚ the balances in Equipment and Accumulated Depreciation were $1‚021‚500 and $189‚900‚ respectively. At December 31 after adjusting entries‚ the balances were $1‚125‚900 and $452‚700‚ respectively. During the year‚ $148‚500 of equipment was acquired and equipment with a book value of $25‚200 was sold. What was Depreciation Expense for the year? Equipment 1‚021‚500 148‚500 1‚125‚900 Plug A Accumulated Depreciation 189‚900 Plug B Dep Exp 452‚700 Plug A = 44‚100 = Cost of Asset
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out of bonus depreciation. He also contributed and office building and land with a combined FMV of $129‚000. The land’s FMV is $9‚000. Wally bought the land in 2005 for $8‚000 and had the building constructed for $100‚000. The building was placed in service in June 2008. Required: Your tax manager has asked you to prepare a schedule for the file indicating the basis of property at the time of contribution that Wally contributed‚ the depreciation for each piece
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between the owners and players concerning how to account the expenses is crucial to understand if the company could be profitable and then able to meet players’ requirements. In this case three problems are under the scrutiny of the arbiter: roster depreciation‚ player compensation and the transfer pricing of related party operation‚ thus issues regarding the stadium cost. Players and owners are struggling against each other in order to win the bargain trying to force and emphasize their own reasons.
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the tertiary sector would use fixed assets or non-current assets. Fixed assets can vary from buildings and premises to cars or the equipment used. Whatever the case proper management of fixed assets is needed. By this we mean providing proper depreciation‚ spending on maintenance and repair as well as adjusting the accounts clearly and accurately to show the changes in fixed assets. This project looks at the procedures involved in acquiring fixed assets and the disposal of fixed. It also uses accounting
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………………………………………………………… Sales taxes ……………………………………………………………… Installation of furniture ………………………………………………… Cost of repair furniture damaged during installation …………………… $11‚000 375 550 75 400 Instructions a. Compute depreciation expense for the years 2011 through 2014 under each depreciation method listed below: 1. Straight-line‚ with fractional years rounded to the nearest whole month. 2. 200 percent declining-balance‚ using the half-year convention. 3. 150 percent declining-balance‚ using the
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Chapter 7 Fundamentals of Capital Budgeting 7-1. Pisa Pizza‚ a seller of frozen pizza‚ is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $20 million per year. While many of these sales will be to new customers‚ Pisa Pizza estimates that 40% will come from customers who switch to the new‚ healthier pizza instead of buying the original version. a. b. Assume customers will spend
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of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3‚600 Supplies 2‚800 Equipment 25‚000 Accumulated Depreciation—Equip $ 8‚400 Notes Payable 20‚000 Unearned Rent 9‚900 Rent Revenue 60‚000 Interest Expense –0– Wages Expense 14‚000 An analysis of the accounts shows the following. 1. The equipment depreciates $400
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a. Delta Airlines Depreciation Method Depreciation Method Salvage Value For every $100 mil Depreciated Annual Depreciation Prior to 1986 Straight-line‚ 10 years 10% 100-(.1*100)=90 90/10=9 $9 mil 1968 – 1993 Straight-line‚ 15 years 10% 100-(.1*100)=90 90/15=6 $6 mil After 1993 Straight-line‚ 20 years 5% 100-(.05*100)=95 95/20=4.75 $4.75 mil b. Singapore Airlines Depreciation Method Depreciation Method Salvage Value For every $100 mil Depreciated Annual Depreciation Prior to 1989 Straight-line
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tangible business asset. In 2013 and 2014‚ it deducted $3‚140 and $7‚200 depreciation with respect to the asset. Firm A’s marginal tax rate in both years was 35 percent. Compute Firm A’s adjusted basis in the asset at the end of each year. (part b) a) 2013: $39‚660; 2014: $29‚320 b) 2013: $46‚860; 2014: $39‚660 Initial cost basis$50‚000 Year 1 depreciation (3‚140) Adjusted basis at end of 2013$46‚860 Year 2 depreciation (7‚200) Adjusted basis at end of 2014$39‚660 c) 2013: $50‚000; 2014:
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private limited liability company that operates a single cruise ship. The ship was acquired on 1 October 1996. Details of the cost of the ship’s components and their estimated useful lives are: component original cost ($million) depreciation basis Ship’s fabric (hull‚ decks etc) 300 25 years straight-line Cabins and entertainment area fittings 150 12 years straight-line Propulsion system 100
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