Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please assist with this questions Henrietta, the owner of a very successful hotel chain in the Southeast, Is exploring the possibility of expanding the chain

Please assist with this questions

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Henrietta, the owner of a very successful hotel chain in the Southeast, Is exploring the possibility of expanding the chain into a city in the Northeast. She Incurs $35,500 of expenses associated with this Investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also Investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $54,000. She proceeds with opening the restaurant, and It begins operations on May 1. Determine the amount Henrietta can deduct in the current year for Investigating these two businesses. In your computations, round the per month to two decimal places and use rounded amount In subsequent computations. If required, round your final answers to the nearest dollar. a. The deductible amount of investigation expenses related to expansion of her hotel chain into another dty: 35,500 b. The deductible amount of Investigation expenses related to opening a restaurant: $ ( Previous P Hrdback MacBook Air Fa F9 F10 C OExercise 5-8 (Algorithmkc) (LO. 7) In 2020, Mckenzie purchased qualifying equipment for his business that cost $293,600. The taxable Income of the business for the year is $105,400 before consideration of any $ 179 deduction. If an amount is zero, enter =0". a, Calculate Mckenzie's $ 179 expense deduction for 2020 and any carryover to 2021. 5 179 expense deduction for 2020; $ 293,600 5 179 carryover to 2021: $ b. How would your answer change if Mckenzie decided to use additional first-year (bonus) depreciation on the equipment Instead of using 6 179 expending? Mint See Concept Summary 8.4. 5 179 expense deduction for 2020: $ $ 179 carryover to 2021: s ( Previ Document101 Feedback MacBook Air Fin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Canadian Cases In Financial Accounting

Authors: Carol E. Dilworth, Joan E. D. Conrod

2nd Edition

256111405, 978-0256111408

More Books

Students also viewed these Accounting questions

Question

=+ Do you see any potential problems with the analysis?

Answered: 1 week ago

Question

2. Ask questions, listen rather than attempt to persuade.

Answered: 1 week ago

Question

1. Background knowledge of the subject and

Answered: 1 week ago