Unit 6 Discussion (ACC150 Accounting Essentials)
A final question from Anne Marie.
I see these things called current assets and current liabilities. What are they? Why show them? I have current assets of $47,797.50 and current liabilities of $5,200. Is that good or bad?
Please respond in your own words to each of these questions? See Anne Fin Statements.docx Anne Fin Statements.docx – Alternative Formats
Unit 6 DB: Cost Recovery for Brett’s business equipment (ACC330 – Federal Income Taxes)
Brett started a new construction business in April 2020. In connection with the new business, he purchased a new backhoe for $60,000 in June 2020 and immediately placed it in service. The new business is struggling and expecting to show a loss for 2020. Brett is considering expensing the $60,000 cost of the backhoe under §179 on the 2020 tax return. Brett has been awarded a large project for 2021, and will show a substantial profit (over $100,000) for the year ending 12/31/2021. Your response must fully address the following:
Evaluate the appropriateness of Brett’s plan.
Explain your position.
How could changes in tax law affect the appropriateness of Brett’s plan?