On October 1, 2018, your company borrowed $36,000 on a 6%, 12-month note payable to Chase Bank. Prepare the adjusting entry at December 31, 2018 to record interest expense. Which of the following are true concerning the adjusting entry?

Question 41 options:

Dutch Bakers has a $100,000 deferred tax liability that will create taxable income in 2020. Dutch established the deferred tax liability in 2017 when the tax rate was 40%, and in 2018 the tax rate enacted for 2020 was increased to 50%.
Part 2: In 2018, the year the tax rate change for 2020 is enacted, the effect of the change on tax expense will be a:

1. Debit of $50,000

2. Debit of $40,000

3. Debitof25,000

4. $0

Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a basis of $10,000 and a fair market value (FMV) of $25,000. He has owned the artwork for 10 years. The charity that Henry donated the artwork to is a public charity and will display the art work in its art center. What is the maximum charitable deduction in 2018 that Henry can take?

$0.

$10,000.

$15,000.

$25,000

In March 2018, the Federal Reserve Bank officials met and decided to increase the interest slightly (a quarter of one percent) and have hinted that there will be two or more interest hikes in 2018. The reason for these hikes is to prevent the economy from overheating as unemployment continues to drop. Using AD-AS model, show what could happen to the economy if the Fed hiked interest rate when the economy is close to full employment.

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

You purchased a commercial building and land for $305,000 on February 1st, 2016. The land itself was valued at $82,000 when purchased. You sold the land and building for $480,000 on March 27th of 2018. (a) What is the allowable tax depreciation amount for the year 2016? (b) What is the allowable tax depreciation amount for the year 2017? (c) What is the allowable tax depreciation amount for the year 2018?

On January 1, 2018, you deposited $5,200 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019?

1. On 6/14/2013, Jack paid $130000 for a property. This purchase price represents $105000 for the cost of the building and $25000 for the cost of the land. On 8/2/2018, he sold the property for $130000. Compute the MACRS depreciation for each one of the years he owned the property.

Note: recovery period is 39 years.

Note: Find the depreciation for each year from 2013 to 2018, separately.

Sugarland Industries reported a net income of $820,750 on December 31, 2018. At the beginning of the year, the company had 570,000 common shares outstanding. On April 1, the company sold 31,200 shares for cash. On August 31, the company issued 56,400 additional shares as part of a merger.

Required: Compute Sugarland's net income that would produce a basic EPS of $2.35 per share for 2018.