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Deffense [45]
2 years ago
9

How should disability payments, which are non-taxable, be analyzed in order to fairly calculate the customer’s ability to pay?.

Business
1 answer:
GREYUIT [131]2 years ago
5 0

In order to calculate a customer's ability to pay, disability payments shall be analyzed by creating an income or a debt ratio.

<h3>What are disability payments?</h3>

A payment which is received by an individual on account of not being able to work or provide his services due to the illness, or any medical conditions as such, is known as a disability payment.

The disability payments are non-taxable, which means that a person is not liable to pay taxes over the income made through disability payments during the taxable year.

Hence, the significance of disability payments is given above.

Learn more about disability payments here:

brainly.com/question/10455549

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Answer:

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Explanation:

The amount of equipment shall be determined through accounting equation which is given as follows:

Total Assets=Total liabilities+Total equity

Total assets=Current+Non current assets

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Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment

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Applying given data in the question to the above equation

$19,800+$15,000+Cost of equipment-$1,550=$44,750

$33,250+Cost of equipment=$44,750

Cost of equipment=$44,750-$33,250=$11,500

Amount of equipment on balance sheet=$11,500-$1,550=$9,950

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