Find how is the cost of a lump-sum purchase allocated

Reference no: EM132714877

Question 1: How is the cost of a lump-sum purchase allocated to the individual assets acquired? Provide a simple example of how the allocation would be performed if your company paid $1,000,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,200,000 for the 3 asset components $400,000, $500,000, and $300,000, respectively.

Question2: Does the balance in the Accumulated Depreciation - Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?

Question 3: Assume you work for a company in sales and therefore are entitled to not only hourly pay, but commission and bonus as well. You work 40 hours in a payroll week. Calculate your gross pay for your company if you make $x per hour (you select your rate!), earn a 5% bonus (of gross pay), and earn 10% commission (of gross pay).

Question 4: Unfortunately, you do not get to keep all your Gross Pay. Assuming you have the following withholding deductions taken out of your pay, now calculate your Net Pay.

Withholding deductions:

Employee income tax (20%)

Employee OASDI tax (see book for how to calculate)

Employee Medicare tax (1.45%)

Employee health insurance 75

Employee contribution to United Way 20

Total withholdings:

Reference no: EM132714877

Questions Cloud

Compute the imputed interest charge : Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Use a 10 percent rate to compute imputed interest charge

Strategic management-case synopsis : In 2017, Ford Motor Company was facing disruption in the automobile industry and moving in a direction that meant it was becoming more than just an auto company

Compute the total indirect costs : Osborne Ltd manufactures a wide range of leather suitcases. Heating, lighting and power $4,000. Compute the total indirect costs

Are you confident of your abilities in the given area : What planning and organizing functions are needed to be a successful manager in health care? Are you confident of your abilities in this area? Why?

Find how is the cost of a lump-sum purchase allocated : Find how is the cost of a lump-sum purchase allocated to individual assets acquired? Provide a simple example of how the allocation would be performed

Explain the concepts of price discrimination and capacity : Briefly explain the concepts of price discrimination and capacity discrimination in the airline industry, elucidate the concepts with airline examples.

Define issue related to public and personnel administration : Identify an important issue related to public and personnel administration and research both sides, and write a position paper. (Issue Chosen "Social Equity")

Please explain fixed and flexible budgeting : Please explain fixed and flexible budgeting. Provide an example of budgeting for three consecutive periods in which safety margin is included for flexibility

Discuss at least one tax-related advantage of home : "Dual-Residency Dilemma", Discuss at least one tax-related advantage of home or rental property ownership that you would share with Holly and Jim.

User Account

All Pages