Answer: $7,000
Explanation:
Interest deduction is allowed by the IRS if the loan was taken to improve the home. However, for married couples, only loans below the $750,000 limit can have their interest deducted.
The Sanchezes have paid off $500,000 of the principal of their previous loan so we will assume that was enough to get this new loan under the $750,000 limit.
Allowable interest deduction will therefore be:
= 100,000 * 7%
= $7,000
Answer:
Steelers Inc.
a) Journal entries:
Sept. 12
Debit Available for Sale Investment $133,200
Credit Cash Account $133,200
To record investments in the common stock of Bengals Inc., 11,110 shares at $12 per share.
Dec. 31:
Debit Unrealized Loss on Available for Sale Investment $22,200
Credit Available for Sale Investment $22,200
To record the fair value of the investment.
b) The unrealized gains and losses are included in other comprehensive income within the equity section of the balance sheet.
The loss will, therefore, be deducted from other comprehensive income.
Explanation:
Investments held for sale are accounted for at fair value. This implies that at the end of any accounting period, the fair value of the investments will be determined. This is usually the market value. Then, adjustments are made in the asset account according to the fair value. There will be recognized either unrealized gain or loss, which are taken to other comprehensive income in the balance sheet under the equity section.
The answer to the question is the third option, "Total control, but total liability". The decisions made regarding the business in sole proprietorship is mainly based on the thinking of one owner, in this case Antonia. In similar manner, all the liabilities are also hers.
Answer:
Winnebago Industries' ending inventory have been if it had used FIFO is $77,196,000
Explanation:
The computation of the ending inventory under FIFO method is shown below:
= Ending inventory under LIFO inventory method + LIFO reserve
= $46,850,000 + $30,346,000
= $77,196,000
For determining the ending inventory under the FIFO method, we added the ending inventory under the LIFO method and LIFO reserve so that accurate value can come.
Amounts withheld from employee's earnings for the employee income tax is considered a liability by the employer until the government is paid
What is liability?
Liability means the obligation that one party owes another, whose settlement requires the indebted party to transfer cash or equivalent value of other benefits commensurate to the liability to the other party.
In this case, the employees owe the government income taxes, whereby the employees have discharged the obligation by having the employers deduct them from their earnings.
The onus is now on the employers to make payments in respect of the income taxes withheld to the tax authority, prior to which the taxes are treated as the employer's liability.
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Missing options:
(A) assets. (B) liabilities. (C) salary expense. (D) revenue.
