Answer:
Please consider the explanation below
Explanation:
The earliest date Mitchell can purchase land and building is 4 March,2013-the date of threat of condemtion
According to section 1033 if a property similar to the property conveted , no gain shall be recognized.
b) If he elects section 1033 than there is no recognized gain.
c) His adjusted basis is $450000 cost of old land and building and plus any additional cost above $625000 what he has received.
d) he he invest in stock he does not qualify for 1033 so his recognized gain is $625000-450000=$175000.
Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.
The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.
The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.
Find out more on accounts receivables at brainly.com/question/24871345.
The company should debit (increase) the Accounts Receivable account by $10,000 and credit (increase) the Service Revenue account by $10,000. This follows the accrual method of accounting, in which revenues and expenses are recorded when they are earned and incurred, respectively.
The correct entry to record this transaction, using the accrual method, involves two accounts: Accounts Receivable and Service Revenue. Here is the step-by-step process of recording this transaction.
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Answer:
Yes
Explanation:
In a test scenario such as this one, the test locations should be isolated from media with a far reach, such as television. This is mainly due to the fact that if media advertising reaches areas outside the market being tested, it will eventually attract customers from outside the test population which will in term contaminate the data. This can lead to false results, such as a product selling more than it really will.
a. total fixed costs must be increasing
b. average variable cost must be increasing,
c. marginal cost must be below average total cost.
d. average fixed costs must be increasing.
e, average total cost is no longer equal to the sum of average variable cost and average fixed cost.
Option (a) total fixed costs must be increasing if the average total cost is increasing as output rises.
In the short term, as a company's output increases, its average fixed cost decreases. Fixed costs remain the same regardless of the number of products produced. As performance improves, the fixed cost contribution per unit decreases.
On the short-term curve, much of the initial downslope is due to lower average fixed costs. Increasing the variable input return at low output levels also plays a role, but the slope is due to the decreasing limit variable input return.
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Answer:
The correct answer is: served one (1) year or more in jail.
Explanation:
The National Securities Markets Improvement Act (NSMIA) is a U.S. securities regulation law. It aims to give more regulatory power to the federal government. Under this law, people who would like to apply to become securities brokers must not have a prison history as inmates for more than one (1) year. Otherwise, their application will be denied.
Ken is determined not to have employees work on Sunday, but he would like to know the opportunity cost of not working on Saturday. Provide Ken with an estimate of the opportunity cost, and explain why you do not have to consider rent or depreciation of office equipment in your estimate.
Answer:
Parrish Plumbing
1. Opportunity cost of not working on Saturday:
= $52,000 per year.
2. Parrish's monthly rent or depreciation related to office equipment are not considered because they are not incremental costs. Non-incremental costs do not make any difference to the decision to work on Saturday or not. Therefore, the costs are regarded as sunk, because they must be incurred no matter the decision. They are therefore irrelevant and non-variable in nature.
Explanation:
Daily revenue = $2,500
less relevant or incremental expenses:
Labor $700
Parts 500
Transport 100
Office staff 200 (1,500)
Incremental profit $1,000 per week
Annual incremental profit = $52,000 (52 * $1,000) or opportunity cost
The opportunity cost of not working on Saturday for Parrish Plumbing is $52,000, which is the foregone profit. This is calculated by subtracting operation costs from potential revenue. Sunk costs like rent or depreciation are not considered as they don’t affect incremental costs.
To calculate the opportunity cost of not working on Saturday for Parrish Plumbing, we need to subtract the total costs associated with working on Saturday from the total revenue that could be generated if work was done on that day. Ken is projecting a daily revenue of $2500 for each Saturday they would be opened for 52 Saturdays in a year, giving a total annual revenue of $130,000 ($2500 * 52).
The costs for staying open on Saturday include $700 for labor, $500 for parts, $100 for transportation, and $200 for office staff which totals to $1500. Therefore, the net profit for working on a Saturday would be the revenue ($2500) subtracted by the costs ($1500), which gives us $1000. Over 52 Saturdays in a year, this amounts to $52,000 ($1000 * 52). The $52,000 is the opportunity cost of not working on Saturday. This represents the amount of profit Ken is foregoing to give his employees the day off.
Regarding why we don’t need to consider rent or depreciation of office equipment, those are considered sunk costs. Sunk costs are expenses that have already been incurred and cannot be recovered. These costs do not change regardless of business operations, hence, they are not relevant when considering incremental costs for extra operation days.
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Answer:
Depreciation expense in 2019 is $144,050
Explanation:
O’Dell Vegetables uses the straight-line method of depreciation, Depreciation Expense each year is calculated by following formula:
Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life
From July 1, 2016 to 2018:
Annual Depreciation Expense = ($984,000 - $140,000)/8 = $105,500
Depreciation Expense in 2016 = $105,500x6/12 = $52,750
Accumulated Depreciation (end 2018) = $52,750 + $105,500 + $105,500 = $263,750
From 2019, the machine would become uneconomical after December 31, 2023:
Salvage Value = 0 and Remaining useful life = 5 year
Depreciation Expense = (Historical Cost - Accumulated Depreciation - Salvage Value)/Remaining Useful Life = ($984,000-$263,750-0)/5 = $144,050
Depreciation in 2019 is $144,050