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2 years ago

Question 7 of 10

Business

1 answer:

Ugo [173]2 years ago

6 0

All-inclusive vacations are not an example of expenses that are not allowable tax deductions.

<h3 /><h3>What are the tax deductions allowed?</h3>

They correspond to a form of exemption and credit in taxation, such as interest on a home mortgage, unreimbursed healthcare costs and charitable donations.

Therefore, tax deductions contribute to a reduction in taxable income and in the amount of taxable tax.

Find out more about taxes here:

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Describe the slope of the demand curve? How does the slope reflect the law of demand?

AnnZ [28]

Answer:

1. The slope is negative

2. The demand decreases when the prices increase.

Explanation:

Describe the slope of the demand curve?

The slope of the demand curve is negative.

The demand curve is graphed on a coordinate plane with the price in the horizontal axis (typically the x-axis) and the demand on the vertical axis (y-axis).

Thus, the slope will be the rate of change of the demand over the change on the price.

Mathematically:

$slope=\dfrac{\text{change in demand}}{\text{change in price}}$

Since, as you move from left to right, on the x-axis, the prices increase, and the demand (on the y-axis) lowers, the change in demand is negative and the change in the prices is positive, resulting in a negative slope.

This is seen graphycally because the demand curve is decreasing (downward-sloping).

How does the slope reflect the law of demand?

The slope reflects perfectly the law of demand because the law of demand states that, since the resources are scarce, when the prices incrases the quantities demanded decrease.

8 0

3 years ago

The allowance for doubtful accounts currently has a debit balance of $200. The company's management estimates that 2.5% of net c

lidiya [134]

Answer:

Bad debt expense (w/o allowance) = $2,875

Bad debt expense ( with allowance) = $2,675.

Explanation:

According to the scenario, the given data are as follows:

Net credit sales = $115,000

Uncollectible percentage = 2.5%

So, we can calculate the bad debt expense without Allowance for doubtful accounts by using following method:

Bad debt expense ( W/o allowance) = $115,000 × 2.5%

= $2,875

After Allowance for doubtful expense

Bad debt expense = $2,875 - $200

= $2,675

4 0

3 years ago

Wildhorse Co. incurred research and development costs in 2018 as follows:

vazorg [7]

Answer:

d. $2,950,000

Explanation:

The computation of amount of research and development costs charged is shown below:-

Amount of research and development costs = Direct materials + Personnel cost + Consulting fee paid to outsiders + Indirect costs + Depreciation

= $995,000 + $795,000 + $345,000 + $270,000 + $545,000

= $2,950,000

Therefore for computing the amount of research and development costs we simply applied the above formula.

8 0

3 years ago

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

3 years ago

Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by

vovangra [49]

Answer:

d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.

Explanation:

As for the information provided,

There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.

Thus, on the provisional basis such claims of $100,000 would have been provided ideally.

Now, after final judgement the court had cleared about the claim which is $150,000.

Thus, entry to record such claim of $150,000 will be:

Expenses A/c Dr. $50,000

Claims Payable A/c Dr. $100,000

To Cash A/c $150,000

7 0

3 years ago