Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,000 on capital additions. As of January 1, 2019, the house was worth $1,200,000. Mr. James was not entitled to depreciate thehouse as it was a personal-use asset.Assume Mr. James still owned the house as of December 31, 2019. On December 31,2019, the house was valued at $1,300,000. For tax purposes, how much income did Mr.James realize in 2019

Answers

Answer 1
Answer:

Answer:

= $210,000

Explanation:

The question is to determine the income realized by Mr. James in 2019

The income is calculated as follows:

First, the basic information for calculation:

The Purchase price for the vacation house = $1,000,000

Spent Capital additions = $10,000

2019 worth of the house = $1,200,000

Secondly, based on the extracted figures, the income is calculated  as follows

Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)

= $1,200,000 - ($1,000,000 - $10,000)

= $1,200,000 - $990,000

= $210,000

Answer 2
Answer:

Final answer:

Mr. James did not realize any income from the increase in value of his house in 2019 for tax purposes as the house was not sold.

Explanation:

For tax purposes, income is normally the amount of money received for goods or services during a certain time period. However, any increase in the value of personal assets such as a house, also known as appreciation, is not counted as income until the asset is sold. So, in 2019, even though the value of Mr. James' house increased by $100,000, from $1,200,000 on January 1 to $1,300,000 on December 31, 2019, Mr. James would not have realized, or officially 'made,' any income from his home in 2019 unless he sold it. Therefore, for tax purposes, the answer is $0.

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Harwinton, Inc. anticipates sales of 56,000 units, 54,000 units, 57,000 units and 56,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?
Keystone Computer Timeshare Company entered into the following transactions during May 2017. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. Purchased computers for $20,000 from Data Equipment on account. 2. Paid $3,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April. 4. Performed computer services for Ryan Construction Company for $2,700 cash. 5. Paid Midland Power Co. $11,000 cash for energy usage in May. 6. Stockholders invested an additional $32,000 in the business. 7. Paid Data Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of $840 on account.
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clean water softener systems has cash of $600, accounts receivable of $900, and office supplies of $400. clean owes $500 on accounts payable and salaries payable of $200. cleans current ratio is

Answers

Answer:

Cleans current ratio is = 2.71

Explanation:

The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations.

Current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle.

Current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer.

Current ratio = current assets ÷ current liabilities.

From the question above;

Current assets;

Cash $600

Account receivable $900

Office supplies $400

Total $1900

Current liabilities;

Account payable $500

Salaries payable $200

Total $700

Current ratio = 1900 ÷ 700

Current ratio = 2.71

When meeting someone from a different culture it is more useful to focus on ________, or central tendencies and patterns within a culture which recognize that there are variations of beliefs, behavior and values within that culture.a. prototype
b. stereotype
c. halo bias
d. fundamental attribution error

Answers

Answer:

Option A: Prototype

Explanation:

culture is basically the way of life of people in a place. It is a system of beliefs, values, and ways of life that are shared or common with(by) a group of people.migration in the world today has made people with different cultures to be intertwined. Understanding your cultures is good but to foster growth, peace and love wherever we are among other cultures and traditions, one must learn to understand other people cultures around is as it will help in building faith, love and peace. Cultural differences appear in a number of important areas, including nonverbal signals, gender. Religion and attitudes toward work and success.

Focus on the original, early model,/sample(prototype), central tendencies and patterns within a culture will help us to recognize that there are a lot of difference in the beliefs, behavior and values within that culture.

Jensen Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $216,000 in total sales during the year; $178,000 of which were on credit. Jensen has experienced bad debt losses of 6% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year

Answers

Answer:

$10,680

Explanation:

Bad debt expense can be seen as an account receivables which are uncollectible during a period of time because of the customers inability to fulfill his /her financial obligations which therefore result into bad debt.

(Bad Debt Expense = Net credit sales × Bad debt loss rate )

= $178,000 × 0.06 = $10,680

Therefore the estimated amount of Bad Debt Expense for the year is $10,680

Imagine you are reviewing a business plan. In which section of the business plan would you expect to find the answers to the following questions?Question Financial Statements Marketing & Sales Management Service or Product Line
How much money will the owners invest in the business start-up?
How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?

Answers

Answer:

Hence,

The money which the owners invest in the business start-up is by Financial statements.

The salespeople for this business be compensated is by Marketing & sales management.

The unique features of this business’s merchandise are by Service or product line.

Explanation:

Financial statements show how much money will the owners invest in the business start-up.

Marketing & sales management shows how will the salespeople for this business be compensated.

Service or product line shows What are the unique features of this business’s merchandise

In a business plan, the 'Financial Statements' section provides information about the owner's start-up investment, compensation of salespeople is detailed in the 'Marketing & Sales Management' section, and unique merchandise features could be found in the 'Service or Product Line' section.

In a business plan, you would typically find the answers to your questions in the following sections:

  • The amount of money that the owners will invest in the business start-up would typically be found in the Financial Statements section. This part of the business plan provides a detailed view of the business’s financial forecasts, including equity investment from owners.
  • Information about how salespeople for the business will be compensated can be found in the Marketing & Sales Management section. This usually outlines the business's sales strategies, including employee compensation models.
  • The unique features of a business's merchandise would be detailed in the Service or Product Line section. This illustrates what the business plans to sell, highlighting unique selling points and differentiators that make its products or services unique.

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Sebastian received a raise this year so his income climbed from $45,000 to $52,000. Last year Sebastian purchased 2 sunglasses. This year he has purchased 7 sunglasses. Assuming that all of the other things remain constant, what type of a good are sunglasses and what type of income elasticity of demand does Sebastian have

Answers

Answer:

normal good

elastic demand

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Income elasticity = percentage change in quantity demanded / percentage change in income

percentage change in quantity demanded = (7/2) - 1 = 250%

percentage change in income = (52,000 / 45,000) - 1 = 15.6%

250 / 15.6 =  16.07

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Inferior goods are goods whose demand falls when income rises and increases when income falls.

Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per unit of product 2 Budgeted finished units for the period 7,100 Actual number of finished units produced 5,700 Standard wage rate per direct labor hour (SP) $ 20.00 Direct labor costs incurred $ 234,000 Actual wage rate per direct labor hour (AP) $ 18.00 The direct labor efficiency variance for October, rounded to the nearest dollar, was: a. $32,000 unfavorable.

b. $20,600 favorable.

c. $26,000 favorable.

d. $3,200 unfavorable.

e. $52,600 unfavorable.

Answers

Answer:

a. $32,000 unfavorable

Explanation:

The computation of the direct labor efficiency variance for October is shown below:-

Direct labor efficiency variance = (Standard hours for actual production - Actual hrs) × Standard rate per hour

= (5,700 × 2 - $234,000 ÷ $18.00) × $20

= (11,400 - $13,000) × $20

= $1,600 × $20

= $32,000 unfavorable

Therefore for computing the direct labor efficiency variance for October we simply applied the above formula.

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