Which of the following depreciation methods is required to be used by companies

Question

Which of the following depreciation methods is required to be used by companies on their Federal Income Tax Returned filed with the Internal Revenue Service? a. modified accelerated cost recovery system b. straight-line c. modified cost recovery system d. declining-balance According to a summary of the payroll of Scotland Company. $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000 Also, $ 15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include: a. a debit to Salary Payable of $313,000 b. a debit to Salary Expense of $363,000 c. a credit to Salary Expense of $313,000 d. a credit to Salary Payable of $363,000 If a gain of $5, 500 is realized in selling (for cash) computer hardward having a book value of $27, 500, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a. $22,000 b. $33,000 c. $27, 500 d. $5, 500 Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 FICA taxes withheld 900 Income taxes withheld 2, 500 Medical insurance deductions 450 Federal Unemployment Taxes 32 State Unemployment Taxes 216 The journal entry to record the monthly payroll on April 30 would include a a. credit to Salaries Payable for $8, 150 b. debit to Salaries Expense for $7, 902 c. debit to Salaries Payable for $8, 150 d. debit to Salaries Payable for $7, 902 The entry to record accrual of employer's payroll taxes would include a a. debit to Payroll Tax Expense for $248 b. credit to Payroll Tax Expense for $248 c. debit to Payroll Tax Expense for $ 1, 148 d. debit to FICA Taxes Payable for $ 1, 800

Explanation / Answer

26.a. Modified accelarated cost recovery system

27. d. a credit to salary expense 363000

28.b. 33000

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