The answer is<u> "C. gift tax".</u>
A gift tax is a government imposed tax to an individual giving anything of significant worth to someone else. For something to be viewed as a gift, the getting party can't pay the supplier full an incentive for the gift, however may pay a sum not as much as its full esteem. It is the provider of the blessing who is required to settle the blessing government expense. The collector of the gift may pay tax on the gift regulatory expense, or a level of it, on the supplier's benefit, if the provider has surpassed his/her yearly personal gift tax deduction limit.
Answer:
$444,000
Explanation:
current earnings and profits = (taxable income - income taxes) - meals expense + tax exempt income = ($600,000 - $155,000) - $3,000 + $2,000 = $444,000
Disallowed expenses are expenses made by an individual or company that the IRS doesn't allow to be deducted, e.g. meals. Tax exempt income is income that is not taxed by the IRS, e.g. DRD includes at least 70% of dividends received.
Deferred gains or unearned revenues are considered a liability and are not included in the income statement.
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $45,000
Useful life= 5 years
Salvage value= $10,000
<u>To calculate the annual depreciation under the double-declining balance method, we need to use the following formula:</u>
Annual depreciation= 2*[(book value)/estimated life (years)]
<u>2018:</u>
Annual depreciation= 2[(45,000 - 10,000) / 5]
Annual depreciation= 14,000
<u>2019:</u>
Annual depreciation= 2*[(35,000 - 14,000)/5]
Annual depreciation= $8,400
