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2 years ago

Explain the income from business and its taxation treatment

1 answer:

8 0

Answer: Income is taxed when earned, capital gains income is taxed when realized, dividends when distributed, and other forms of business income may escape taxation entirely .

Explanation:

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Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

MissTica

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

7 0

3 years ago

Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m

RSB [31]

Answer:

d. $1,540 F

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour

where,

Actual direct labor hours is 2,380

And, the standard direct labor hours equal to

= 5,200 units × 0.5

= 2,600 hours

Now put these values to the above formula

So, the value would equal to

= (2,380 hours - 2,600 hours) × $7

= 1,540 favorable

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2 years ago

What is a drug cartel

Leni [432]

Answer:

A drug cartel is a criminal organization with the intention of supplying drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises.

3 0

2 years ago

Dermot just learned that his company is closing, and all the employees will be laid off. He is distraught and anxious about how

77julia77 [94]

Answer:

Explanation:

because you want the employer to know that you learned from your last job

8 0

3 years ago

On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31, the company declare

mash [69]

Answer:

Total Stockholders' equity was affected.

Explanation:

Stock dividend refers to distributing shares free of cost among the existing shareholders. Such a dividend does not result in resources flowing out of the entity but merely reassign amounts from retained earnings to other equity accounts. Thus, such a dividend does not affect the total equity of the stockholders. This can be seen through the following entry,

Retained Earnings $1,800,000 Dr

Common Stock, at par $1,200,000 Cr

Paid in Capital in excess

of par, Common Stock $600,000 Cr

The above transaction shows that we just redistributed the reserves by reducing retained earning by the value of stock dividend 1800000 [( 800000*0.15) * $15] and adding it to the Common Stock 1200000 [(800000*0.15) * 10] and to paid in capital in excess of par 600000 [(800000*0.15) * 5].

6 0

2 years ago