Answer:
The correct answer is letter "A": Must be calculated on earned income as well as adjusted gross income in some cases.
Explanation:
The Earned Income Credit is a refund the government issues to taxpayers in case their earned income or Adjusted Gross Income (AGI) is lower than the amount of taxes they need to pay. The maximum earned income to qualify for an earned income credit also depends on the number of children in the household, and if the file return is submitted jointly.
To find the gross profit margin found by:
(revenue - cost of goods sold)/revenue
Revenue = $62,275
Cost of goods sold (purchase price) = $26,500
= (62,275 - 26,500)/62,275
= 35,775/62,275
= 0.57 x 100
Percentage of gross profit = 57%
Answer:
It is more convenient to produce the sails in house.
Explanation:
Giving the following information:
Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.
Because there will not be an increase in fixed costs, we will not have them into account.
Variable overhead= 90 - (78,000/1,200)= 25
Unitary variable cost= 100 + 80 + 25= 205
It is more convenient to produce the sails in house.
Answer:
A)) interest expense from loans to purchase corporate bonds and interest expense from loans to purchase stocks.
Explanation:
An investment interest expense can be regarded as any amount of interest which is been paid on proceeds of loan that is been used in purchasing investments or securities. investment interest expense can be regarded as been deductible under some particular circumstances.
It should be noted that investment interest expense include;
✓interest expense from loans to purchase corporate bonds
✓ interest expense from loans to purchase stocks.
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
