Equipment at end of two-year period

Reference no: EM13150409

Jordan paid $60,000 for equipment two years ago and has claimed depreciation deductions of $31,200 for the two years. The cost of repairs during the same time period was $2,000 while a major overhaul which extended the life of the equipment cost $14,000. What is Jordan's basis in the equipment at the end of the two-year period?

A) $28,800

B) $30,800

C) $42,800

D) $60,000

Reference no: EM13150409

Questions Cloud

Describe the common curriculum framework : Describe the common curriculum framework and the First Nations, Métis and Inuit education policy framework. Discuss how these initiatives may contribute to Indigenous education in systems of education.

Units production during the month : Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month..

Find mean-standard deviation of sampling distribution x bar : Find the mean and the standard deviation of the sampling distribution of x bar, and find an interval containing 95.44 percent of all possible sample mean returns.

Decrease in supply with no change in demand : If the price of apples rises and the quantity of apples exchanged decreases, then we know that there cannot have been a: decrease in supply with no change in demand.

Equipment at end of two-year period : The cost of repairs during the same time period was $2,000 while a major overhaul which extended the life of the equipment cost $14,000. What is Jordan's basis in the equipment at the end of the two-year period?

Problem on disbursements for manufacturing overhead : The company's budgeted fixed manufacturing overhead is $77,220 per month, which includes depreciation of $9,720. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead o..

Explain what is the overall reaction order : Consider the following reaction: 2Mg + O2 --> 2MgO , Rate = k[Mg][O2]^2 Part A What is the overall reaction order? Express your answer as an integer. Part B What are the units of the rate constant k for this reaction?

Probability that height will be more than sixty nine inches : Mmean of 67 inches and a population standard deviation of 4 inches. For any one person selected at random, what is the probability that their height will be: more than 69 inches?

Journal entries to record three dividend events : Prepare journal entries to record the three dividend "events" that took place during 2008. If the company's common stock was valued at $135 per share when the stock dividend was declared, what would the stock price be just after the dividend shares..

User Account

All Pages