On november 4, 2017, blue company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. in 2017 and 2018, respectively, blue took $642 and $5,128 of cost recovery. these amounts were incorrect; blue applied the wrong percentages (i. e., those for 39-year rather than 27.5-year assets). blue should have taken $910 and $7,272 cost recovery in 2017 and 2018, respectively. on january 1, 2019, the asset was sold for $180,000.
enter the values for each item below. if required, round all computations to the nearest dollar.
a. the adjusted basis of the asset at the end of 2018 is $.
b. the cost recovery deduction for 2019 is $.
c. on the sale of the asset in 2019 is $

Following are the transactions for valdez services. the company paid $2,000 cash for payment on a 6-month-old account payable for office supplies. the company paid $1,200 cash for the just completed two-week salary of the receptionist. the company paid $39,000 cash for equipment purchased. the company paid $800 cash for this month’s utilities. the company paid $4,500 cash in dividends to the owner (sole shareholder). examine the above transactions and identify those that create expenses for valdez services. prepare general journal entries to record those transactions that created expenses in the above given order.

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?