Answer:
December 31 Interest expense $3900 Dr
Interest Payable $3900 Cr
Explanation:
The interest and principal is both payable at maturity thus we need to accrue the interest payment and create a liability against the amount of interest due. The adjustment is made 6 months from the issue of the note thus the interest for 6 months is due. The entry would be to record 6 month's interest that relates to this year. The interest expense will be,
120000 * 0.065 * 6/12 = $3900
As the payment is not made until maturity we will credit interest payable by this amount.
Answer:
The correct answers are letters "C" and "D": Jane's Schedule C net profit; Qualified Publicly Traded Partnership (PTP) income.
Explanation:
The Qualified Business Income Deduction or QBI allows up to 20% of deductions for people who file small businesses taxes in personal statements. The rule mainly applies to all those activities developed in a sole proprietorship. Capital gains, losses, dividends, and interest are not eligible for this type of deductions. A schedule C (form 1040) or a qualified Publicly Traded Partnership (PTP) income can be subject to this deduction.
Answer:
Stan appears to satisfy the basic Sec. 911 exclusion requirements for his year of arrival since he will be physically present in France for at least 330 days during his year of arrival. The actual number days for which the exclusion can be claimed depends on the length of time he spent in the United States. The salary, cost-of-living allowance, housing allowance, home leave allowance, and education allowance all are excludable up to the Sec. 911 limitation (calculated on a daily basis). In addition, Stan can claim an exclusion for the housing cost amount minus the base amount (calculated on a daily basis). Both exclusions are denied for the portion of Stan's salary and allowances attributable to his time in the United States. The portion of his employment-related expenses and foreign taxes attributable to the excluded income are unable to be deducted or credited. The foreign-earned income exclusion and housing cost amount exclusion are both elected by claiming such amounts on Form 2555.
Not knowing the amount of the foreign income taxes, and other components of Stan's tax return, it is impossible to know whether Stan should elect out of the Sec. 911 exclusion. Stan may have spent sufficient number of days in the United States on his trip home to need to qualify for the foreign-earned income exclusion under the bona fide foreign resident rules. In such case, he will not qualify for the exclusion until the end of this second calendar year in France. The exclusion would then be available retroactively back to the date on which he established foreign residency status.
Explanation:
Answer:
Assets = Liabilities + Stockholders' Equity
<u>1.</u> 1,600 0 1600
<u>2.</u> -400 0 -400
<u>3.</u> 0 0 0
<u>4.</u> -100 0 -100
<u>5.</u> -400 0 -400
<u>6.</u> 1000 0 0
-1000
<u>7.</u> 7000 7000 0
<u>8.</u> 0 200 -200
<u>9.</u> 10000 0 10000
<u>10.</u> <u> -500 </u> <u> 0 </u> <u> -500 </u>
Totals 17200 7200 10000
Answer:
a. The cost of the marble will be expensive because of the bargaining power of the supplier.
Explanation:
As the marble her provided is only used for the common public buildings and churches. This is basically the best use of the marble, as the quality is high and used in best architecture in the economy.
Therefore, it clearly states the value of marbles, which is generally expected to be high, and as it is used in public buildings the supplier will not allow the purchaser to bargain. This is because the bargain power of the purchaser will be low, and as there is high demand.
Accordingly price will be high.
