Flax LLC purchased only one asset this year. On January 16 Flax placed in service a computer (five-year property) with a basis of $14,000. Calculate the maximum depreciation deduction (ignoring §179 and bonus depreciation). (Use MACRS Table 1.)
What will be an ideal response?
$2,800.
The asset's recovery period is five years and the half-year convention applies since less than 40 percent of the property was placed in service during the fourth quarter. The calculation is $14,000 × 0.20 = $2,800.
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Closing entries for a merchandising business do not resemble closing entries for a service business
Indicate whether the statement is true or false
Taft Company produces 5,00 . pallets each day. The average number of units in work in process is 10,000 . having an average cost of $35,000 . The annual carrying costs related to inventory are 20%. Consultants have determined that the work in process could be reduced by as much as 25% by rearranging the factory floor. What would the throughput time be if Harrison implements the recommended
changes? a. Twelve hours b. One day c. One and one-half days d. Two days
Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?
a. Payment of cash dividends b. Decrease in accounts payable c. Increase in merchandise inventory d. Loss on sale of machinery and equipment
Why is it necessary to have a time-phased budget baseline?
A. It reduces fluctuations in cash flow during the project B. It reduces schedule slippage when scheduling multiproject resources C. It allows proper resource allocation D. It shows how much work was accomplished for the money spent E. It is not necessary to have a time-phased budget baseline