Answer:
No, Elevators, Inc. has not broken the law because payment was made in United States currency.
Explanation:
It operates a substantial business abroad for high-end luxury hotels. It authorized a project manager to "charge" a government official a charge of 500 for speeding up the building permit process. so
- Under the law, it is illegal to bribe foreign officials to get business. But there is an exception to "facilitation payments", also known as grease payments made to speed up general government functions.
- Flexible payments can be used to persuade government officials to perform work that is already being done. Although many have argued that such payments are important for their operations in some areas, such as Asia and Africa, the difference between facility payment and bribery remains unclear.
Answer:
Qualified Business Income Deduction is $9,800
Tax liability = $4,564
Explanation:
Qualified business income is calculated by subtracting an individual's ordinary deduction from a qualified business or trade from the individual's ordinary income.
Net income = $61,000
Standard deduction = $12,000
Modified taxable income;
$61,000 - $12,000 = $49,000
QBI Deduction (Sec 199A) is the lesser of:
[0.2 × 49,000 < 0.2 × 61,000]
$9,800 < $12,200
Therefore Qualified Business Income Deduction is $9,800
Taxable income = $(49,000 - 9800) =$39,200
Answer:
Amount of depreciation expense =$5,250
Explanation:
Under the straight line method the same amount is charged as depreciation expense over the estimated useful life of the asset
Initial depreciation = cost - salvage value /number of years
= (25,000 -5000)/5
= 4000 per year
Accumulated depreciation for 4 years= 4000× 3 = 12,000
Revised depreciation = (25,000 -12,000 - 2500)/2
=$5250 per year
Amount of depreciation expense for year 4 =$5250
To determine the amount that must be invested each year, a computation must be made using the formula for the future value of an annuity due. The future value of an annuity can be described as the sum of the future value of each payment.
Investing can be defined as the process of buying assets that increase in value over time and provide returns in the form of income capital gains or payments. The equation for the future value of an annuity due is the sum of the geometric sequence, or can be written as A(1 + r)1 + A(1 + r)2 + ... + A(1 + r)n.
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