Answer:
Net capital gain = $1,400
Net ordinary income = $300
Explanation:
Long term Capital gain = $1,400 from sale of stock since it was hold for 2 years (more than 1 year)
Ordinary gain = $1,100 - $800 = $300 since automobile was 6 months old and equipment had zero basis
Answer: a. Capital expenditure
b. Revenue expenditure
c. Revenue expenditure
d. Capital expenditure
Explanation:
Capital expenditures are usually huge expenditure on fixed assets such as land or building and they re usually incurred to generate revenue for the business.
Revenue expenditures are usually for short term basis and are operating expenses, that us required to run the business daily.
Based on the above explanation, the answers to the following will be:
a. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. - Capital expenditure
b. Paid $390 cash per truck for the cost of their annual tune-ups. - Revenue expenditure
c. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. - Revenue expenditure.
d. Completed an addition to a building for $438,750 cash. - Capital expenditure
Check the attachment for the journal entry
The $78,000 equipment motor replacement and the $438,750 building addition are capital expenditures. The $390 truck tune-ups and the $312 for air-filter replacements are revenue expenditures. Relevant journal entries: 'Equipment' debited and 'cash' credited $78,000, then 'Building' debited and 'cash' credited $438,750.
The transactions can be classified as either a revenue expenditure or a capital expenditure. 1. Paying $78,000 cash to replace a motor on equipment that extends its useful life by four years and completing an addition to a building for $438,750 cash are considered capital expenditures because they are significant investments that will benefit the company for more than one accounting period. 2. Paying $390 cash per truck for the cost of their annual tune-ups and paying $312 for the monthly cost of replacement filters on an air-conditioning system are both classified as revenue expenditures because they only benefit the current accounting period. The journal entries to record transactions A and D would be: Equipment (Debit $78,000), Cash (Credit $78,000) and Building (Debit $438,750), Cash (Credit $438,750).
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Answer:
In the short run, these workers are variable inputs, and the ovens arefixed inputs. TRUE
Explanation:
The statement is true. The worker are defined on a weekly basis at will by Yvette hence, short-term thus variable input.
In the other hand; the oven were leased for the entire year thus, unchangable in the short run. Yvette's decition about the number of oven in her kitchen is a long-term decition as currently are fixed.
Answer:
stock price is below $50
Explanation:
given data
price of a stock = $64
strike price = $60
option price = $10
solution
we know here that stock sell for $60 and pay for $10
so that here price of stock is
stock price = $60 - $ 10
stock price = $50
and net profit will be
net profit = $10 - $10
net profit = 0
so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.
so price will be below than $50
Answer:
Revenue= $503,538.46
Explanation:
Giving the following information:
In 2019, X Company's profit function was 0.31R - $89,000, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will increase by $16,020.
Tax rate= 35%
Desired profit= 33,200
X= 0.31R - (89,000+16,020)= 0.31R - 105,020
We need to incorporate the effect of the tax rate:
X= [(0.31R - 105,020)*(1-t)]
33,200= [(0.31*R) - 105,020]*(1-0.35)
33,200/0.65= 0.31R - 105,020
51,076.92 + 105,020= 0.31R
503,538.46= R
Employee Health Insurance Payable 450
Employee Income Tax Payable 400
Estimated Warranty Payable 600
Long-Term Notes Payable(Due 2019) 33,000
FICA—OASDI Taxes Payable 560
Sales Tax Payable 370
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Current Portion of Long-Term Notes Payable 3,500
What is the total amount of current liabilities?
Answer:
$18,880
Explanation:
Current Liabilities are those liabilities which need to be paid within on year time. These liabilities are also called short term liabilities.
Following Liabilities are considered as the current liabilities because these needs to be paid within one year.
Accounts Payable $13,000
Employee Health Insurance Payable $450
Employee Income Tax Payable $400
Estimated Warranty Payable $600
FICA—OASDI Taxes Payable $560
Sales Tax Payable $370
Current Portion of Long-Term Notes Payable $3,500
Total Current Liabilities $18,880
Following are all the Non current liabilities balances:
Long-Term Notes Payable(Due 2019) 33,000
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
b. they help us determine how much a firm will produce and even how it will produce it.
c. cost curves tell us the profitability of the firm.
d. they help us understand the market that the firm is in.
Answer:
a. they tell us whether a firm is profitable or not.
Explanation:
The shape of a firms curve tells us if a firm is profitable or not. If the firm is charging a higher price that is greater than its average cost of production for whatever quantity that was produced, we will have it that this firm will earn profits. But when the price that the firm is charging is smaller than its average cost of production, the firm will experience losses.