Assume Joe Harry sells his 25 percent interest in Joe's S Corp., Inc., to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc., earned $200,000 from January 1 to January 29 and a total of $1,460,000 from January 1 through December 31 (365 days)?a. $28,000.
b. $50,000.
c. $112,000.
d. $200,000.
e. None of the above.
Answers
Answer:
$29,000
Explanation:
Joe sells 25% of his interest to Joe's S corporation
= 25/100
= 0.25
Therefore using the daily allocation method, the amount of income reported if Joe earns $200,000 from January 1st to January 29th and a total of $1,460,000 for 365 days
= 1,460,000/365 days × 29 days × 0.25
= 4,000×29×0.25
= $29,000
Hence the amount of income reported by Joe Harry is $29,000
Related Questions
On December 31, it was estimated that goodwill of $51,500 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $115,200 on April 1.a. Journalize the adjusting entry on December 31 for the impaired goodwill b. Journalize the adjusting entry on December 31 for the amortization of the paten
The projected cash flow for the next year for Minesuah Inc. is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
Which of the following best explains the purpose of a demand schedule?A. To calculate how much of a good consumers will use.B. To demonstrate how supply affects demand.smC. To indicate how supply and demand relate to price.D. To show the level of demand at various prices.SUBMIT
Ernest invents a novel, useful, nonobvious product. He:____.a. must apply for a patent within one year of selling the product commercially. b. may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application. c. is entitled to a patent over someone else who invents the same product if he is the first to invent it. d. may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.
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.
b. As the aggregate price level increases, consumer expectations about the future change.
c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
d. As a good\'s price increases, holding all else constant, the good\'s quantity demanded decreases.
Answers
Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
Explanation:
The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.
The AD comprises of Investment, Consumption Spending, Government spending and Net Income.
When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.
Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.
Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.
The aggregate demand curve is downward sloping because an increase in the aggregate price level causes consumer and investment spending to fall.
The correct answer is c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
The aggregate demand curve represents the relationship between the aggregate price level and the quantity of goods and services demanded in an economy. It is downward sloping because when the aggregate price level increases, consumer purchasing power decreases as the cost of goods and services rises. This leads to a decrease in consumer and investment spending, causing the aggregate demand curve to slope downwards.
For example, when the price of gasoline increases, individuals and businesses may cut back on their spending on other goods and services to compensate for the higher cost of fuel. This decrease in purchasing power and spending ultimately affects the overall demand in the economy.
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Answers
Answer:
True
Explanation:
As for the provided information, the flu is new in market and has serious issues involved, and now since no remedy or cure is possible and will not be possible even in near future,
The hand sanitizer will help as a preventive action from getting infected to the Flu. Thus, people will buy the sanitizer at huge level.
Thereby, the demand for such product will increase in market in huge, and accordingly even if the company has to increase production capacity through lease it shall do so.
As with huge turnover break even will be realized and there will be profits.
Answers
Answer: Raises the levels of both productivity and income
Explanation:
In a closed Economy, there is no trade with the outside world.
That would mean that the GDP formula for their expenditure model will look like this,
Y = C + I + G
Where Y is (GDP)
C is consumption
I is investment and,
G is Government Spending
Investment is also known as Savings because it is the amount of Total income that is not spent after individuals CONSUME and the Government SPENDS,
I = Y - G - C.
When an economy SAVES MORE they are sacrificing consumption now for future consumption and saving more.
This means that there is more money to invest in Economic activities.
Since there is a higher Investment in Economic activities, we can expect higher CAPITAL STOCK which can drive Economic growth as it leads to greater productivity as well as greater income because the Economy is growing.
The Harrod-Domar model of economic growth speaks more on this.
Answers
Maria’s utility-maximizing point is: 3 salads, 6 vegetarian burgers. Therefore, the correct option is C.
Given information: Each salad costs $6 and each vegetarian burger costs $3. Maria’s weekly food budget is $36.
3 salads cost will be:
= $18
6 vegetarian burgers cost:
= $18
Total cost: $18 + $18 = $36
When Maria is consuming 3 salads and 6 vegetarian burgers, she is spending $36 which is equal to her budget i.e. $36. So, it is Maria’s utility-maximizing point.
The happiness or benefit that a person obtains from consuming a good, using a service, or participating in an activity is referred to as utility. It stands for the arbitrary evaluation of how highly a person values or likes a given option or choice.
Thus, the ideal selection is option C.
Learn more about utility here:
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The complete question might be:
For Lunch, Maria Eats Only Salads Or Vegetarian Burgers. Her Weekly Food Budget Is $36. Each Salad Costs $6 And Each Vegetarian Burger Costs $3. When Deciding How Much Of Each Good To Buy, Maria Knows That 2 Salads And 4 Vegetarian Burgers Will Give Her A Utility Of 8. Maria’s Utility-Maximizing Point Is: A. 6 Salads, 1 Vegetarian Burger B. 4 Salads, 6
32. For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian burger costs $3. When deciding how much of each good to buy, Maria knows that 2 salads and 4 vegetarian burgers will give her a utility of 8. Maria’s utility-maximizing point is:
A. 6 salads, 1 vegetarian burger
B. 4 salads, 6 vegetarian burgers
C. 3 salads, 6 vegetarian burgers
D. 2 salads, 8 vegetarian burgers
Answers
Answer:
Part 1 . Determine the cost of goods manufactured
Direct materials $280,000
Direct labor $324,000
Factory overhead $188,900
Add Opening Stock of Work In Progress Inventory $72,300
Less Closing Stock of Work In Progress Inventory $76,800
Cost of Goods Manufactured $788,700
Therefore cost of goods manufactured is $788,700
Part 2 . Statement of Cost of Goods Manufactured
Opening Stock of Finished Goods Inventory 39,600
Add Cost of Goods Manufactured 788,700
Less Closing Stock of Finished Goods (41,200)
Cost of Goods Manufactured 787100
Explanation:
Part 1 . Determine the cost of goods manufactured
This is a calculation of all Overheads Incurred in the Manufacturing process
Part 2 . Statement of Cost of Goods Manufactured
It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use