QUESTION 15 A gain for tax purposes (a tax gain) occurs if the proceeds from selling...
QUESTION 15
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A gain for tax purposes (a tax gain) occurs if
the proceeds from selling the old asset exceed the depreciated (book) value
the firm buys back its own common stock shares
money is spent over and above the value of the project under consideration
the asset is an intangible asset
Homework Answers
| Answer : The proceeds from selling the old asset exceed the depreciated(book) value |
| If you have any doubt then please ask |
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QUESTION 15
A gain for tax purposes (a tax gain) occurs if
the proceeds from selling...
If the tax rate is 40%, what are the net proceeds from selling an asset for...
If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the asset originally had a book value of $40,000.
1. Your firm purchased equipment costing $600,000 1 year ago. The firm also incurred shipping costs...
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a. Your firm purchased equipment costing $300,000 1 year ago. The firm also incurred shipping costs...
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Question 5 (15 marks) Maurice is an individual tax resident of Australia for tax purposes. He...
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please help with these accounting questions! Styles Styles Pane Sens A I U 1. The Accumulated...
please help with these accounting questions!
Styles Styles Pane Sens A I U 1. The Accumulated Depreciation account represents a cash fund available to replace plant assets. A) True B) False 2. Using the units-of-activity method of depreciating factoryy equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used. A) True B) False 3. Additions and improvements to a plant asset that increase the asset's operating...
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation...
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation is handled as: A retrospective change back to the date of acquisition as though the current estimated life had been used all along Acumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. A prospective change from the current year through the remainder of its useful life. None of these answer choices are...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $193,000 and will require $30,800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
pick 1 of the five things you should know about capital gains tax, and give a...
pick 1 of the five things you should know about capital gains
tax, and give a pro or con point of view on the artical.
Paragraph Styles 6 5 Things You Should Know about Capital Gains Tax Updated for Tax Year 2019 OVERVIEW A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand...
Alicat Corp reported 20x4 income from continuing operations before tax of $50,000. Not included in the...
Alicat Corp reported 20x4 income from continuing operations before tax of $50,000. Not included in the $50,000 are the following items: a) Alicat sold an old delivery truck that is no longer needed in the business. The net book value of the truck was $5,000 and Alicat was able to sell it for $6,000. b) Because of a change in economic conditions over the year, it was determined that the allowance for doubtful accounts was understated as of 12/31/X4 by...
please help with these accounting questions!
Styles Styles Pane Sens A I U 1. The Accumulated Depreciation account represents a cash fund available to replace plant assets. A) True B) False 2. Using the units-of-activity method of depreciating factoryy equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used. A) True B) False 3. Additions and improvements to a plant asset that increase the asset's operating...
Question 12 (1 point) A change from the straight-line method to the sum-of-years-digits method of depreciation is handled as: A retrospective change back to the date of acquisition as though the current estimated life had been used all along Acumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. A prospective change from the current year through the remainder of its useful life. None of these answer choices are...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $193,000 and will require $30,800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
pick 1 of the five things you should know about capital gains
tax, and give a pro or con point of view on the artical.
Paragraph Styles 6 5 Things You Should Know about Capital Gains Tax Updated for Tax Year 2019 OVERVIEW A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand...
Alicat Corp reported 20x4 income from continuing operations before tax of $50,000. Not included in the $50,000 are the following items: a) Alicat sold an old delivery truck that is no longer needed in the business. The net book value of the truck was $5,000 and Alicat was able to sell it for $6,000. b) Because of a change in economic conditions over the year, it was determined that the allowance for doubtful accounts was understated as of 12/31/X4 by...
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