What amount of the cost of the repairs can matt deduct

Assignment Help Financial Management
Reference no: EM132367939

Question :

Matt hired Apex Services to repair Matt's business equipment. On November 1, of year 0, Matt paid $2,000 for the repairs that he expects to begin in early March of year 1.

a. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting for his business?

b. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual medlod of accounting for his business?

c. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual med-nod and he expects the repairs to be done by early February?

Reference no: EM132367939

Questions Cloud

Compute the jimenez enterprises foreign tax credit : Jimenez Enterprises is incorporated in Arkansas. It generated a $5,000,000 profit on its overseas operations this year. Jimenez paid $2,000,000 in income taxes
What is the after-tax salvage value if the tax rate : The firm is selling this equipment today for $3,652. What is the After-tax Salvage Value if the tax rate is 19%?
The macrs allowance percentages are as follows : The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.
Evidence of market efficiency : Market efficiency: Zippy Computers announced strong fourth quarter results. Sales and earnings were both above analysts' expectations.
What amount of the cost of the repairs can matt deduct : What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual med-nod and he expects the repairs to be done by early February?
Compute the mirr statistic for project j : 1. Compute the MIRR statistic for Project J if the appropriate cost of capital is 9 percent.
Identify the impacts on corporate governance : Identify the impacts on corporate governance.Discuss the connection between the article and the failure of HIH Insurance. Identify the main theme of the reading
Calculate the addition to retained earnings expected : Calculate the addition to retained earnings expected in 2019.
What are some other factors and how important are those : Some believe it's the most important. If a client's internal controls are effective, thus the evidence obtained from the client becomes more reliable.

Reviews

Write a Review

Financial Management Questions & Answers

  Should you sell or buy more preference shares

Suppose you own 500 shares of XYZ Co's preference shares. The preference shares currently sell for $3.80 per share and pays annual dividends.

  What is the after-tax selling price of the old machine

What is the book value of the old machine today? What is the after-tax selling price of the old machine?

  What is the company total book value of debt

Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 6 years ago. The bond currently sells for 80 percent of its face value. The book value of the debt issue is $19 million. The company's tax rate is 32 percent. What is the company's to..

  Evaluate profitability for variation in the estimates

defined and run some reasonable scenarios using Scenario Manager to evaluate profitability for variation in the estimates.

  What is investment in risk-free asset

You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. What is the investment in risk-free asset? What is the investment in Stock C?

  Present value of the decision to produce chains in-house

what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier?

  Financial value associated with brands strength in market

Brand equity is the marketing and financial value associated with a brand's strength in a market. In addition to the actual proprietary brand assets, such as patents and trademarks, four major elements underlie brand equity: brand-name awareness, bra..

  Compute the recaptured depreciation-capital gain and loss

An asset was purchased three years ago for $100,000 and can be sold for $40,000 today. The asset has been depreciated using the MACRS 5-year recovery period and the firm pays 40% taxes on both ordinary income and capital gain. SHOWING WORK- Compute t..

  Finance charges to credit card company

Eileen, who is currently paying $624624 per year in finance charges to her credit card company, wants a car that costs $12 comma 00012,000.

  How many futures contracts will you need to hedge

How many futures contracts will you need to hedge a $240 million portfolio with a beta of 1.16 for one year?

  What is the intrinsic equity value of the firm today

The firm has not debt and its stock's required return is 14%. What is the intrinsic equity value of the firm today?

  Necessary to achieve comfortable lifestyle in retirement

As a result, they're willing to put aside whatever is necessary to achieve a comfortable lifestyle in retirement.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd