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Several Individuals Acquire Assets on Behalf of Skip Corporation on May

question 38

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Several individuals acquire assets on behalf of Skip Corporation on May 28,2010,purchased assets on June 3,2010,and begin doing business on June 11,2010.They subscribe to shares of stock,file articles of incorporation for Skip,and become shareholders on June 21,2010.The S election must be filed no later than 2 1/2 months after:


Definitions:

Straight Line

A method of calculating depreciation of an asset which assumes equal annual depreciation over the asset's useful life.

Salvage Value

The estimated resale or scrap value of an asset at the end of its useful life.

British Petroleum

A global oil and gas company headquartered in the United Kingdom, known as BP, one of the world's seven oil and gas "supermajors".

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting its decrease in value over time.

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