answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mice21
2 months ago
13

To what extent do cost recovery deductions based on the capitalized cost of a tangible asset reflect a decline in the economic v

alue of that asset?
Business
1 answer:
marusya05 [3.7K]2 months ago
7 0

Answer:

Cost recovery deductions do not relate to any decrease in the property's value concerning which the deduction applies.

Explanation:

Capitalized costs refer to expenses incurred when constructing and financing a fixed asset, such as labor costs.

These expenses contribute to the asset's cost (capitalized) and are deducted gradually through depreciation, depletion, and amortization over time. They are not deducted from the revenue of the period they are incurred.

Thus, the cost deductions based on capitalized costs do not reflect the asset's value but represent an expense associated with that asset, with payments distributed over time.

For instance, if $1,200 is spent on constructing an asset valued at $500,000, that $1,200 will be capitalized over 12 months, resulting in a monthly deduction of $100 from expenses. This does not impact the asset's value ($500,000).

You might be interested in
It is April 19, 2012 and you suddenly remember that your credit card bill is due the next day. You have the money in your checki
Nady [3600]

Answer: One potential action is to contact the credit card company to inquire if the payment can be made over the phone.

Explanation:

Other alternatives for settling a credit card bill without mailing include online payments. You'll need to create an online account, which typically requires your account number and some identification details. After registering, you can select the pay now feature to use your debit card or an online checking option for payment. It will process swiftly, though it may take a day to reflect in your account.

Most credit card companies offer an automated service allowing customers to make payments during the call. You'll require your card number, social security number, and debit card details for this transaction. While these payments are commonly free, it may vary based on the specific credit card provider.

8 0
2 months ago
If an undergraduate student was considering getting a tattoo and stopped to ask herself what her parents would think of such beh
soldi70 [3635]

Answer: The right answer is "subjective norm".

Explanation: If a college student contemplating a tattoo pauses to consider her parents' opinions regarding such an action, this thought process would reflect her subjective norm, as it specifically hinges on her parents' potential views about her behavior.

3 0
2 months ago
Read 2 more answers
What was the opening price of Dow Jones Industrial Average on May 30, 2017 in the format of XXXXX.XX?
Free_Kalibri [3773]

Answer:

Dow Jones Industrial Average on May 30, 2017:

As stated on valueline.com, on May 30, 2017, the Dow Jones Industrial Average concluded at 21029.47, reflecting a decrease of 50.81.

Closing index = 21029.47

minus the decline = 50.81

Opening index = 21080.28

This indicates that the opening figure was 21080.28.

Explanation:

The Dow Jones Industrial Average tracks the stock performance of 30 significant companies listed on U.S. stock exchanges. This is classified as a stock price index, alongside the S&P 500 and NASDAQ.

The opening index reflects the average price at the start of the trading day before any trades occurred. Throughout the trading period, prices likely fluctuated with various movements. By the trading day's conclusion, the closing price recorded was 21029.47, with a downward change of 50.81.

From this closing index data, one can deduce that the opening price exceeded the closing price by 50.81 or approximately 51 basis points.

6 0
2 months ago
Georgie has gross income of $5,000 from an activity that has been deemed to be a hobby by the IRS. Her expenses related to the a
Katen [3525]

Answer:

$5,000 Schedule A (Itemized Deductions)

Explanation:

Solution

Recall that:

George's total income amounts to =$5000

Property taxes equal =$3000

Operating costs are =$1500

Depreciation amounts to =$800

Now

Typically, according to the IRS guidelines, expenses incurred from a hobby are only allowable to the extent of the income generated by that hobby. Since a hobby is for personal enjoyment rather than profit, it cannot be classified as business profit and loss

Thus, George's deductible expense for the year totals $5,000 and should be reported on Schedule A (Itemized Deductions).

8 0
2 months ago
As seen in the​ video, Joie de​ Vivre's CEO appears to possess a degree of​ ____________, which is what the chapter describes as
Scilla [3833]
entrepreneurial spirit. Explanation: Classical economic theory identifies three factors of production: land, labor, and capital. However, contemporary views recognize entrepreneurship as a fourth factor, with some going further to include technology as a fifth factor. An entrepreneur is identifiable as an individual who integrates the various production factors to establish a business. Successful entrepreneurs possess key traits such as innovation, creativity, passion, a future-oriented outlook, optimism, and resourcefulness.
8 0
1 month ago
Other questions:
  • Exotic crafts inc., a handicraft manufacturing company, has an established marketing department responsible for various importan
    10·1 answer
  • Pollyanna Publishing, a textbook publishing firm, purchased a new machine for $80,000. This machine is expected to operate for 1
    8·1 answer
  • A pizza company produces frozen pizzas in three departments: assembly, freezing, and packaging. In assembly, crust ingredient ar
    12·1 answer
  • When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that have stayed at
    7·1 answer
  • 1. OB helps managers explain, predict, and influence behavior in the workplace. Identify behaviors that you are most interested
    12·1 answer
  • What is the best loan option for a neighborhood Lemonade stand? Why?​
    6·1 answer
  • You have $100,000 to donate to your college. you want to endow a perpetual scholarship that makes its first payment in 1 year. i
    12·1 answer
  • Can someone help me with this. Will give brainly
    11·1 answer
  • 1. Why are individuals so important to the NASA project teams? 2. What is the Lessons Learned Program and how might it relate to
    13·1 answer
  • What happens to most projects' value under the CAPM if there is a sudden increase to its market-beta
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!