Answer:
economic responsibility.
Explanation:
Layton has decided to donate a portion if his business Music Box earning's to a charity every year. His action of making donation decision is of economic responsibility. The decision is made to help out community in a good faith and is considered as social responsibility as Layton does not have any legal responsibility to make charity but still he decides to serve the society through his business earnings.
Answer:
Depreciation Expense for 2019 using form 4562
Basis For depreciation; Recovery Period ; Convention ; Method ; Depreciation deduction
2,000 ; 5 years ; HY ; 200 DB ; 400
40,000 ; 7 years ; HY ; 200 DB ; 6,573
Explanation:
Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.
Answer:
Gore is not required to make any accounting adjustments
Explanation:
Gore won't be required to make any accounting adjustments because the litigation loss is already $2,000,000 leading to him recording a liability in his account in which
$5 million in legitimate warranty claims were as well filed by his customers which is why he won't be making any further Accounting adjustment in 2021.
Answer:
The correct answer is letter "A": perpetuity.
Explanation:
Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.
Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
Before preparing the statement of stockholders’ equity we need to calculate the net income or net loss as the case may be. The computation is shown below:
Net income = Sales revenue - cost of goods sold - operating expenses
= $780,800 - $519,000 - $88,800
= $173,000
The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:
