Will the annual depreciation allowance for the Hyundai sedan

Assignment Help Accounting Basics
Reference no: EM132728956

Question - Sweet Eats is the registered business name of a business that bakes and sells cakes. Commercial accounts for the business list among the assets composing the business one Hyundai sedan used in the management of the business.

Scenario One: X and her husband own the company Food Co Pte Ltd ('Foodco'). Foodco owns the business known by the business name Sweet Eats. X is the managing director of Foodco. A contract of employment between Foodco and X provides that in addition to salary X will be provided with a motor vehicle for her private use after hours.

The company's Hyundai sedan is used by X during the day in managing the company's business. After hours X uses the car for private purposes. X's after hours use of the car is authorized by the company in satisfaction of the company's obligation under the contract of employment.

Scenario Two: X owns the business known by the business name Sweet Eats. (X in other words is a sole trader. Amongst other things this means the assets composing the business are owned by X.)

X uses the Hyundai sedan during the day in managing the business. After hours X uses the car for private purposes.

(i) Who will claim depreciation for the Hyundai sedan in the two different scenarios?

(ii) Will the annual depreciation allowance for the Hyundai sedan have the same dollar value in the two scenarios? Provide brief reasons for your answer.

Reference no: EM132728956

Questions Cloud

How much is the carrying amount of the investment property : Marigold Company completed the construction of a building at the end of 2019 for a total cost of P40,000,000. How much is the carrying amount of the investment
Growth model in terms of market-creating strategy : Use AV to illustrate the difference between disruptive and Blue Ocean Strategy, and to discuss the growth model in terms of market-creating strategy.
Provide all consolidation entries needed at December : On January 1, 2019, P Co. acquired 80 percent of S Co. for $400,000 cash. Provide all consolidation entries needed at December
Location and quality control : Identify three (3) factors you would recommend be used to select a location for a business in order to provide it with a competitive advantage.
Will the annual depreciation allowance for the Hyundai sedan : Will the annual depreciation allowance for the Hyundai sedan have the same dollar value in the two scenarios? Provide brief reasons for your answer
Operations planning in supply chain integration : How do sales and operations planning in supply chain integration impact the company overall?
Calculating Constructco chargeable income for the years : What deduction or deductions (if any) are available in calculating Constructco's chargeable income for the years 2017, 2018 and 2019
Identify the role projects play in meeting the goals : Identify the role projects play in meeting the goals of an organization.
Make PT ABC adjusting journal for financial statements : PT ABC has bank loans of Rp 10 billion since the end of 2018. Make PT ABC keep an adjusting journal for the quarterly financial statements 4th ended December

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the contribution margin ratio

Mitchell Corp. expects to sell all the goods manufactured this year and has no beginning inventory of its one product. What is the contribution margin ratio

  How much of security deposit must braydon report as income

Braydon did not return the rental deposit or the pet security deposit. How much of the security deposit must Braydon report as income

  Determine the net present value

Water Company accumulates the following data concerning a proposed capital investment: cash cost $195,200, Determine the net present value

  Find the adjusted cost of goods sold

The adjusted cost of goods sold that appears on the income statement for January is: and The cost of goods manufactured for January is

  What are the tax consequences to jerry

Jerry owns a fleet of trucks leased to a delivery company and exchanges the trucks, What are the tax consequences to Jerry

  Product cost and job costing versus process costing

Go to YouTube and search for clips from the show Unwrapped on Food Network or How It's Made on the Discovery Channel. Watch a clip for a product you find interesting.

  Why is it that sunk costs are never relevant to a decision

Why is it that sunk costs are never relevant to a decision whereas opportunity costs are always relevant

  How large must each of the five payments be

It is now January 1. You plan to make a total of 5 deposits of $100 each, one every 6 months, How large must each of the five payments be

  Complete long-term liabilities and current liabilities

Indicate the proper balance sheet classification of each of the preceding 12 financial statement items on the December 31, 2003, balance sheet. If the account title would not appear on the balance sheet, indicate the financial statement on which i..

  Compute the net present value of each project

Compute the net present value of each project. Which project should be adopted based on the net present value approach

  Which will decrease the net present value of a project

Which will decrease the net present value of a project? moving each of the cash flows back one period./ decreasing the required discount rate

  Write three factors which influences capacity decisions

Write three factors which influences capacity decisions? Is there any difference between location and site? If so, what is the difference?

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