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Can you please explain the following answers to me...

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Can you please explain the following answers to me with details. Thanks Question:1 which of these two answers is correct. I received two different answers on the same question. as shown below 1A and 1B ============================ 1A In 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer Tax difference = 179000-125000 = $54000 favourable and temporary Gain on sale = (500000-350000)-(500000-210000) = -$140000 unfavourable and permanent 1 B in 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer: Total book-tax difference = $179,000 ? ($179,000 - $125,000) ? ($179,000 - $210,000) = $86,000 It is unfavorable and the amount of book-tax difference is temporary Question: Question: Question:2 why not $900 but $450? why did you multiply $900 x500/1000 please explain this point to me 1.Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1,000 dinner with a film producer where no business was discussed $500 lunch with sister Nicky where no business was discussed $700 business dinner with a client but Paris forgot to keep any records (oops!) $900 tickets to the opera with a client following a business meeting A. $450 B. $900 C. $1,100 D. $1,200 E. $800 Answer: Option A is correct. Deductible amount = $900 x 500/1000 = $450 Question:3 where did you get the 70% from ( Amount of dividend = 70% x ($10,000 - $2,000) 1. Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.? A. $0 B. $5,600 C. $7,000 D. $8,000 E. None of the above. Answer: Amount of dividend = 70% x ($10,000 - $2,000) = 70% x $8,000 2.Teddy purchased only one asset during the current year. It placed in service machinery (7-year property) on October 1st with a basis of $76,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring section 179 and bonus expensing). Answer: Question:4 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? The asset's recovery period is 7 years and the mid-quarter convention applies since more than 40 percent of the property was placed in service during the fourth quarter. The calculation is $76,500 x .0357 = $2,731 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? .,Can you please explain the following answers to me with details. Thanks Question:1 which of these two answers is correct. I received two different answers on the same question. as shown below 1A and 1B ============================ 1A In 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer Tax difference = 179000-125000 = $54000 favourable and temporary Gain on sale = (500000-350000)-(500000-210000) = -$140000 unfavourable and permanent 1 B in 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer: Total book-tax difference = $179,000 ? ($179,000 - $125,000) ? ($179,000 - $210,000) = $86,000 It is unfavorable and the amount of book-tax difference is temporary Question: Question: Question:2 why not $900 but $450? why did you multiply $900 x500/1000 please explain this point to me 1.Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1,000 dinner with a film producer where no business was discussed $500 lunch with sister Nicky where no business was discussed $700 business dinner with a client but Paris forgot to keep any records (oops!) $900 tickets to the opera with a client following a business meeting A. $450 B. $900 C. $1,100 D. $1,200 E. $800 Answer: Option A is correct. Deductible amount = $900 x 500/1000 = $450 Question:3 where did you get the 70% from ( Amount of dividend = 70% x ($10,000 - $2,000) 1. Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.? A. $0 B. $5,600 C. $7,000 D. $8,000 E. None of the above. Answer: Amount of dividend = 70% x ($10,000 - $2,000) = 70% x $8,000 2.Teddy purchased only one asset during the current year. It placed in service machinery (7-year property) on October 1st with a basis of $76,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring section 179 and bonus expensing). Answer: Question:4 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? The asset's recovery period is 7 years and the mid-quarter convention applies since more than 40 percent of the property was placed in service during the fourth quarter. The calculation is $76,500 x .0357 = $2,731 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? . Can you please explain the following answers to me with details. Thanks Question:1 which of these two answers is correct. I received two different answers on the same question. as shown below 1A and 1B ============================ 1A In 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer Tax difference = 179000-125000 = $54000 favourable and temporary Gain on sale = (500000-350000)-(500000-210000) = -$140000 unfavourable and permanent 1 B in 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer: Total book-tax difference = $179,000 ? ($179,000 - $125,000) ? ($179,000 - $210,000) = $86,000 It is unfavorable and the amount of book-tax difference is temporary Question: Question: Question:2 why not $900 but $450? why did you multiply $900 x500/1000 please explain this point to me 1.Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1,000 dinner with a film producer where no business was discussed $500 lunch with sister Nicky where no business was discussed $700 business dinner with a client but Paris forgot to keep any records (oops!) $900 tickets to the opera with a client following a business meeting A. $450 B. $900 C. $1,100 D. $1,200 E. $800 Answer: Option A is correct. Deductible amount = $900 x 500/1000 = $450 Question:3 where did you get the 70% from ( Amount of dividend = 70% x ($10,000 - $2,000) 1. Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.? A. $0 B. $5,600 C. $7,000 D. $8,000 E. None of the above. Answer: Amount of dividend = 70% x ($10,000 - $2,000) = 70% x $8,000 2.Teddy purchased only one asset during the current year. It placed in service machinery (7-year property) on October 1st with a basis of $76,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring section 179 and bonus expensing). Answer: Question:4 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? The asset's recovery period is 7 years and the mid-quarter convention applies since more than 40 percent of the property was placed in service during the fourth quarter. The calculation is $76,500 x .0357 = $2,731 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? . Can you please explain the following answers to me with details. Thanks Question:1 which of these two answers is correct. I received two different answers on the same question. as shown below 1A and 1B ============================ 1A In 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer Tax difference = 179000-125000 = $54000 favourable and temporary Gain on sale = (500000-350000)-(500000-210000) = -$140000 unfavourable and permanent 1 B in 2011, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000. Carbonfab also sold equipment for $500,000. The book adjusted basis of the equipment sold was $350,000, while the adjusted basis for tax purposes was $210,000. What is the total book-tax difference associated with depreciation and the gain on sale? Is it favorable or unfavorable? What amount of the book-tax difference is permanent and what amount is temporary? Answer: Total book-tax difference = $179,000 ? ($179,000 - $125,000) ? ($179,000 - $210,000) = $86,000 It is unfavorable and the amount of book-tax difference is temporary Question: Question: Question:2 why not $900 but $450? why did you multiply $900 x500/1000 please explain this point to me 1.Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1,000 dinner with a film producer where no business was discussed $500 lunch with sister Nicky where no business was discussed $700 business dinner with a client but Paris forgot to keep any records (oops!) $900 tickets to the opera with a client following a business meeting A. $450 B. $900 C. $1,100 D. $1,200 E. $800 Answer: Option A is correct. Deductible amount = $900 x 500/1000 = $450 Question:3 where did you get the 70% from ( Amount of dividend = 70% x ($10,000 - $2,000) 1. Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.? A. $0 B. $5,600 C. $7,000 D. $8,000 E. None of the above. Answer: Amount of dividend = 70% x ($10,000 - $2,000) = 70% x $8,000 2.Teddy purchased only one asset during the current year. It placed in service machinery (7-year property) on October 1st with a basis of $76,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring section 179 and bonus expensing). Answer: Question:4 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? The asset's recovery period is 7 years and the mid-quarter convention applies since more than 40 percent of the property was placed in service during the fourth quarter. The calculation is $76,500 x .0357 = $2,731 why did you used the mid quarter convention, where did you get the percentage from? if only one item was purchased during the year? . I need explanations for some of the questions.

 

Paper#3078 | Written in 18-Jul-2015

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