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ABC legal service has offered to represent a plaintiff in a lawsuit for a retainer of $ 20000 plus 40 % of any award over $ 20000.ABC expects to incur out of the pocket expense of $ 15000 in litigating the suit. Possible court award with their associated probabilities are; $ 100000 - .7 $ 0 - .3 what is the expected value to ABC of the law suit
Hi I am currently studying lease accounting and I came across a problem with the last year of the lease term for the operating Lease Assuming that : 1. The Lease Period is 5 years beginning January 2019 2. Rental Amount : 60,000/year payable annually except for the first payment which was made at the inception of the lease 3. No Residual Life Interest Rate (r) : 10% Present Value of the Lease 250,192 The Journal Entries were as following: 2019.1.1 Right of Use Asset 250,192 / Lease Payable 250,192 Lease Payable 60,000 / Cash 60,000 2019.12.31 Interest Expense 19,019 Lease Payable 40,981 /Cash 60,000 Amortization Expense 40,981 /Right of Use Asset 40,981 2020 12.31 Interest Expense 14,921 Lease Payable 45,079 /Cash 60,000 Amortization Expense 45,079 /Right of Use Asset 45,079 2021 12.31 Interest Expense 10,413 Lease Payable 49,587 / Cash 60,000 Amortization Expense 49,587 /Right of Use Asset 49,587 2022 12.31 Interest Expense 5454.5 Lease Payable 54545.5 /Cash 60,000 Amortization Expense 54545.5 /Right of Use Asset 54545.5 Question : At the last year (2023), should the journal entry be Amortization Expense 60,000 /Right of Use Asset 60,000 To take into account of the amortization expense that was not accounted for in the first year?
The answer states that her available 179 deduction is $9,000, however, it is indicated as being an incorrect answer. The answer further states that only the portion of the new property's basis paid by cash ($10,000) qualifies for the 179 deduction (which is similar to question 24). Why is the $9,000, which represents that business use portion incorrect?