Given:
Commission income = $180,000
Medical insurance = $10,000
Salary expense = $40,000
Medical insurance premium paid for himself = $7,000
Office rental expense = $30,000
Medical expenses paid for himself = 5,000
Computation of business income:
Business income = Total revenue - Total expenses
Business income = $180,000 - ($10,000 - $40,000 - $30,000)
Business income = $180,000 - $80,000
Business income = $100,000
Note: Self-incurred expenses are not included in business expenses.
Computation of AGI:
AGI = Business income - Deduction from schedule c
AGI = $100,000 - Medical insurance premium paid for himself
AGI = $100,000 - $7,000
AGI = $93,000
Therefore, option "B" is the correct answer to the following question.
Jordan's business income is $100,000 (derived from his commission income minus his business expenses) and his Adjusted Gross Income is $93,000 (calculated as business income minus personal deductions). Hence, Option B is the correct answer.
Jordan's business income can be calculated as his commission income minus his business expenses. His business expenses consists of medical insurance premiums for his staff, office staff salary, and office rental expense. Therefore, his business income would be $180,000 - ($10,000 + $40,000 + $30,000) = $100,000. Adjusted Gross Income (AGI) is calculated as business income minus personal deductions. In Jordan's case, he has a personal deduction of $7,000 (medical insurance premium paid for himself). Thus, his AGI would be $100,000 - $7,000 = $93,000. Therefore, the correct answer is B: Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $93,000.
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Answer:
Ending Inventory $ 64,000
Explanation:
To define the final inventory of the company it's necessary to find the cost of good of the period.
As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.
Total Sales Revenue had to be the net value after returns and discounts as it's detailed.
Income Statement
Sales revenue $ 300,000
Cost of goods sold -$ 171,000
Gross Profit $ 129,000 43%
Beginning Inventory $ 60,000
Purchases $ 175,000
Cost of goods sold -$ 171,000
Ending Inventory $ 64,000
Answer:
The overall rate of return is 16.67%
Explanation:
The computation of the overall rate of return is shown below:
= Actual amount return ÷ investment amount
= ($15,000 × 23% + $140,000 × 16%) ÷ ($155,000)
= ($3,450 + $22,400) ÷ ($155,000)
= ($25,850) ÷ ($155,000)
= 16.67%
Hence, the overall rate of return is 16.67%
We simply applied the above formula and the same is to be considered
B) the strategic fit test, the resource fit test, and the profitability test.
C) the barrier-to-entry test, the growth test, and the shareholder value test.
D) the attractiveness test, the cost-of-entry test, and the better-off test.
E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.
Answer:
D) the attractiveness test, the cost-of-entry test, and the better-off test.
Explanation:
To judge a diversification change, an organization needs to pass the attractiveness tests, the entry cost test and the best situation test.
These tests will be decisive to analyze the potential that diversification will have to create added value for the shareholder.
The attractiveness test will list the ability that the market has to ensure that there is a safe return on investments.
The cost-of-entry will aim to ensure that when entering a new sector, the organization does not have higher costs that can influence the generation of profitability.
Finally, the better-off test will analyze whether the planned diversification will be so profitable that it will help to improve the performance of the integration of organizational businesses.
Answer:
OPTION d
Explanation:
Answer:
$410,000
Explanation:
Residual income = operating income - (rate of return*average operating assets)
= $690,000-(14%*$2,000,000)
=$690,000-$280,000
=$410,000
Therefore the Top Hat Division's Residual Income (RI) would be $410,000
B. Crisis management
C. Letharsy
D. Experiential selling
Answer:
B. Crisis management
Explanation:
In this scenario, the CEO of Fig Garden demonstrates crisis management, which is a strategy used by organizations when there is a negative situation that involves the company and can put their credibility at risk with their stakeholders.
In crisis management, there is the development of a plan that seeks to solve and minimize the negative impacts caused by a problem, anticipating solutions and reducing the negative impacts caused in the internal or external environment of the organization. Crisis management is pre-planning that helps companies to act more effectively in business when there is a crisis that they need to deal with quickly.
Accounts Payable 13,900
Accounts Receivable 8,200
Allowance for Uncollectible Accounts $900 credit
Cash Sales 24,000
Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?
$3,900
$4,860
$3,000
$2,100
Answer:
$3900
Explanation:
Calculation to determine the ending balance of the allowance account after the year-end adjustment
Balance in allowance for uncollectible account$ 900
Add Bad debts during the period $3,000
($75,000*4%)
Ending Balance in allowance for uncollectible account$ 3,900
($900+$3,000)
Therefore the ending balance of the allowance account after the year-end adjustment is $3900