Economics – NEED IN 24 HOURS

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    Question 1 (5 points)

    Define book depreciation
    Book depreciation is used on internal financial records to reflect deferred capital investment in the asset.
    Book depreciation is used on internal financial records to reflect future capital investment in the asset
    Book depreciation is used on internal records to reflect the current capital investment in the asset
    Book depreciation is used on internal financial records to reflect past capital investment in the asset.
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    Question 2 (5 points)
    Air handling equipment that costs $12000 has a life of 8 years with a $2000 salvage value.
    (a) Calculate the straight line depreciation amount for each year.
    Dt =$1050
    Dt =$1550
    Dt =$1350
    Dt =$1250
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    Question 3 (5 points)
    Air handling equipment that costs $12000 has a life of 8 years with a $2000 salvage value.
    (b) Determine the book value after 3 years.
    BV3 =$10250
    BV3 =$8250
    BV3 =$7500
    BV3 =$0
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    Question 4 (5 points)
    Air handling equipment that costs $12000 has a life of 8 years with a $2000 salvage value.
    (c) What is the rate of depreciation?
    d = 0.125
    d = 0.375
    d = 0.250
    d = 0.500
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    Question 5 (5 points)
    A warehouse costs $800000 to construct for Ace Hardware. It has a 15-year life with an estimated resale value of 80% of the construction cost. However the building will be depreciated to zero over a recovery period of 30 years.
    Calculate the annual depreciation charge for years 5 10 and 25 (a) using straight-line depreciation.
    Dt =$14650 t = 5 10 25 and all other years
    Dt =$25000 t = 5 10 25 and all other years
    Dt =$26667 t = 5 10 25 and all other years
    Dt =$39440 t = 5 10 25 and all other years
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    Question 6 (5 points)
    A warehouse costs $800000 to construct for Ace Hardware. It has a 15-year life with an estimated resale value of 80% of the construction cost. However the building will be depreciated to zero over a recovery period of 30 years.
    (b) Calculate the annual depreciation charge for year 5 usingDDB depreciation.
    D5 =$39472.
    D5 =$42472.
    D5 =$50472.
    D5 =$40472.
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    Question 7 (5 points)
    A machine with a 5-year life has a first cost of $20000 and a $2000 salvage value. Its annual operating cost is $8000 per year. According to the classical straight line method the depreciation charge in year 2 is nearest to
    D = $4000
    D = $1200
    D = $3600
    D = $1600
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    Question 8 (5 points)
    A machine with a useful life of 10 years is to be depreciated by the MACRS method over 7 years. The machine has a first cost of $35000 with a $5000 salvage value. Its annual operating cost is $7000 per year. The depreciation charge in year 3 is nearest to
    D = $5860
    D = $4320
    D = $3600
    D = $6120
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    Question 9 (5 points)
    The depreciation recovery rate used for comparison with any methods rate is most commonly _________________.
    DB rate
    MACRS Rate
    Straight Line Rate
    DDB Rate
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    Question 10 (5 points)
    Land is an example of __________________.
    Personal property and it is depreciable
    Real property but it is not depreciable
    Real property and it is depreciable
    Personal property but it is not depreciable
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    Question 11 (5 points)
    Write the equation to calculate TIfor a corporation using only the following terms: gross income tax rate business expenses and depreciation.
    TI = TI*GI – E – D
    TI = GI – E – D
    TI = GI – E – DoD
    TI = GI – E – 1
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    Question 12 (5 points)
    Write the equation to calculateNPAT for a corporation using only the following terms: gross income tax rate business expenses and depreciation.
    NPAT = (GI – E – D)(1 – T)
    NPAT = (GI – ET -D)(10 -D)
    NPAT = (TGIF – E – D)(1 – E)
    NPAT = (GIFT – E – D)(100 – T)
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    Question 13 (5 points)
    Define income tax for an individual.
    Income tax for an individual is based on the amount of moneydeferred from a salary for a job contract for services rendered and the like.
    Income tax for an individual is based on the amount of money refused from a salary for a job contract for services rendered and the like.
    Income tax for an individual is based on the amount of money received from a salary for a job contract for services rendered and the like.
    Income tax for an individual is based on the amount of money donated from a salary for a job contract for services rendered and the like.
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    Question 14 (5 points)
    Define whatproperty tax is based on.
    Property tax is based on thewife’s best guessworth of things owned such as house car and personal possessions like jewelry art etc.
    Property tax is based on themother-in-law’s best guessworth of things owned such as house car and personal possessions like jewelry art etc.
    Property tax is based on thetheneighbor’s best guessworth of things owned such as house car and personal possessions like jewelry art etc.
    Property tax is based on the appraised worth of things owned such as house car and personal possessions like jewelry art etc.
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    Question 15 (5 points)
    From the following list select the tax-related term that is best described by each event below: depreciation operating expense taxable income income tax or net profit after taxes.
    (a) A corporation reports that it had a negative $200000 net profit on its annual income statement.
    Net profit after taxes
    Operating expense
    Depreciation
    Income tax
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    Question 16 (5 points)
    From the following list select the tax-related term that is best described by each event below: depreciation operating expense taxable income income tax or net profit after taxes.
    (b) An asset with a current book value of $80000 was utilized on a new processing line to increase sales by $200000 this year.
    Depreciation
    Taxable income
    Operating expense
    Net profit after taxes
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    Question 17 (5 points)
    From the following list select the tax-related term that is best described by each event below: depreciation operating expense taxable income income tax or net profit after taxes.
    (c) A machine has an annual straight line write-off equal to $21000.
    Net income
    Operating expense
    Depreciation
    Taxable income
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    Question 18 (5 points)
    From the following list select the tax-related term that is best described by each event below: depreciation operating expense taxable income income tax or net profit after taxes.
    (d) The cost to maintain equipment during the past year was $3680200.
    Taxable income
    Operating expense
    Depreciation
    Net profit after taxes
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    Question 19 (5 points)
    From the following list select the tax-related term that is best described by each event below: depreciation operating expense taxable income income tax or net profit after taxes.
    (e) A particular supermarket collected $23550 in lottery ticket sales last year. Based on winnings paid to individuals holding these tickets a rebate of $250 was sent to the store manager.
    Income tax
    Net profit after taxes
    Taxable income
    Operating expense
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    Question 20 (5 points)
    Yamachi and Nadler of Hawaii have a gross income of $6.5 million for the year. Depreciation and expenses total $4.1 million. If the combined state and local tax rate is 7.6% use an effective federal rate of 34% to estimate the income taxes using the effective tax rate equation.
    Taxes = $936000
    Taxes = $933000
    Taxes = $942000
    Taxes = $939000
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