Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $234,000 $204,000 $56,000 Equipment 84,000 152,000 27,000 Lily's taxable income before these transactions is $194,500. What are Lily's taxable income and tax liability for the year
Answers
Answer:
Tax Liability = $59,170
Explanation:
Profit on building = 234,000-(204,000-56,000)
Profit on building = $86,000
Loss on equipment = 84,000 - (152,000-27,000)
Loss on equipment = $41,000
Net profit = Profit on building - Loss on equipment
Net profit = $86,000 - $41,000
Net profit = $45,000
Taxable income before transaction = $194,500
Total taxable income = $194,500 + $45,000
Total taxable income = $239,500
According to tax rules
Tax Liability = ($194,500 - $85,650)28% + 17,442 + ($45,000)(25%)
Tax Liability = $47,920 + $11,250
Tax Liability = $59,170
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TC, Inc. has $15 million of outstanding bonds with a coupon rate of 10 percent. The yield to maturity on these bonds is 12.5 percent. If the firm's tax rate is 30 percent, what is relevant cost of debt financing to TC, Inc.?A) 13.75 percentB) 8.75 percentC) 7.00 percentD) 3.75 percent
Answers
One of the most important things to establish in business from your first day is:
- B. Credibility
Business Credibility
This refers to the quality that your business partners are able to trust you and you are accountable and you as a business person has good ethics and can be relied on.
With this in mind, we can see that the first thing to establish in business is credibility.
Therefore, the correct answer is option B
Read more about credibility here:
brainly.com/question/14032595
Answers
The cost of direct material used during the period would be $1,24,000.
What is inventory?
Inventory is an asset because the company invents money in that, it is the stock used in a particular business it starts with an opening balance of inventory and ends with its closing balance.
The cost of goods sold is the cost of the product which is sold during the year.
The formula for computing cost of goods sold(COGS):
OS= Opening Stock,
CS= Closing Stock.
Computation of cost of direct material:
Given that,
Opening stock of raw material = $27,000,
Closing stock of raw material = $28,000,
Purchases = $72,000 ($1,00,000-$28,000)
Putting the given values in the above formula, we get:
Hence, the cost of direct materials used during the period would be $1,27,000.
Learn more about inventory, refer:
Final answer:
The cost of the direct materials used during the year is $74,000. This was computed by adding the beginning raw materials inventory and purchases, then subtracting the end-year inventory and the indirect materials.
Explanation:
To calculate the cost of direct materials used during the period, you will need to take the beginning raw materials inventory, add the purchases made during the year, and then subtract the end of the year inventory and the indirect materials.
In this case, the calculation would be as follows: $27,000 (beginning inventory) + $100,000 (purchases) - $25,000 (ending inventory) - $28,000 (indirect materials) = $74,000. So the cost of direct materials used during the year is $74,000.
This calculation is part of managerial accounting, where it's crucial to keep track of direct and indirect costs to calculate the cost of goods manufactured and eventually obtain the cost of goods sold.
Learn more about Direct Materials Cost here:
#SPJ11
Answers
Please find schedule attached
Answer and Explanation:
1. Names of employees who are not from Department A00 include employees whose work department isn't A00 such as:
Michael Thompson, Sally Kwan, John Geyer, Irvin Stern etc(please refer to attachment)
2. Average of all employees salary = total employees salary /number of employees = $627415/25=$25096.6
3. There are 16 employees earning above the average salary of the employees, such as Christine Haas, Sally Kwan etc
4. There are 6 employees earning above $35000 such as Christine Haas, Michael Thompson, Sally Kwan, John Geyer etc
5. Ms. Haas currently makes $633000 yearly($52750 per month). If she makes $500000 per year then her salary per month will be $500000/12=$41666
A. Kevin will have earned $5.39 more than Jeremy after 3 years.
B. Jeremy will have earned $5.39 more than Kevin after 3 years.
C. Kevin will have earned $18.10 more than Jeremy after 3 years.
D. Jeremy will have earned $18.10 more than Kevin after 3 years.
Answers
Answer:
A
Explanation:
b.The unit cost if 100,000 units are made per year.
c.The annual profit for this quantity(100,000 units).
Answers
Answer:
a. Break Even Profit = Fixed Cost / Contribution Per Unit
Fixed Cost = $1,000,000
Contribution Per Unit = 40 - 21 = $19 Per Unit
Break-even Profit = 1,000,000 / 19 = 52,631.57 Units
b. Unit Cost = $21 Per Unit
Applied Fixed Cost= 1,000,000 / 100,000 = $10 Per Unit
Total Cost = Unit cost + Applied fixed cost = $21 per unit + $10 per unit = $31 Per Unit
c. Annual Profit:
Sales $3,640,000
(60,000 x 40) (40,000 x 31)
Less: Variable Cost $2,100,000
Less: Fixed Cost $1,000,000
Profit $540,000
B. debit to WIP Inventory - Coloring and a credit to Finished Goods Inventory.
C. debit to WIP Inventory - Finishing and a credit to WIP Inventory - Coloring.
D. debit to WIP Inventory - Coloring and a credit to WIP Inventory - Finishing.
Answers
Answer:
Option D : Debit to WIP Inventory - Coloring and Credit to WIP Inventory - Finishing
Explanation:
Definition of Finish Goods Inventory:
Finish Goods means having a product that is ready for the dispatch(consumer) after the completion of all processes of manufacturing. i.e. Molding, Coloring, Finishing for the process in hand.
Therefore Finish Goods Inventory will be the products which we receive after the completion of Finishing process not after the coloring process.
Considering the above statement, Option A & Option B get omitted from the possible correct options.
Thus we are left with only Option C & Option D:
As we know that:
Credit is something due towards a process(person) and increase the liability of respective process or person.
Debit is something given by a process (person) and decreases the liability of respective process or person.
On seeing the definitions of credit & debit, if frishbees are being transferred from coloring to finishing process, then it should be debited from the coloring process's account as it has handed over the product while decreasing it's liability and,
It should be credited to the finishing process's account as it has received the product to work on while increasing it's liability.
Taking the above explanation into consideration:
Option D is our only true choice.