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Shkiper50 [21]
3 years ago
14

David purchases a yacht solely for the purpose of entertaining real estate clients. He wishes to position himself as a high-end

real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment. During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000. In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht. What is David's tax deduction in 2018?Explain.
Business
1 answer:
inysia [295]3 years ago
6 0

Answer:

The tax deductions for the year are as follows:

Depreciation                             $28000

Catering expenses (50%)          $4500

Total deductions                        $32500

Explanation:

Depreciation is deductible in full as it is an operating expense for the year 2018.

Catering expenses deduction is limited to 50% maximum ,while the remaining 50% is not an allowable deduction for tax purposes.

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Edie would like to better understand a new code section enacted four weeks ago. Which of the following authorities will help Edi
Talja [164]

Answer:

Committee reports

Explanation:

Committee reports

Committee report will help Edie in order to understand the newly enacted code section .

Since ,

A committee report is the report which is submitted by the committee to an assembly on the matters related to the business , which is referred to committee or may be on other matters .  

Hence , the correct answer is C. Committee reports .

3 0
3 years ago
A company purchased $2,600 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $600 worth of merchandise. On
mamaluj [8]

Answer:

No options presented but the entry below should be right.

$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:

= 2,600 - 600

= $2,000

Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:

= 2,000 * ( 1 - 3%)

= $‭1,940‬

Date               Account details                                     Debit               Credit

July 12           Accounts Payable                               $2,000

                      Cash                                                                               $1,940

                      Merchandise inventory                                                    $60

4 0
2 years ago
What detail will a purchase specification for milk usually include?
ahrayia [7]

Answer:

I would try C packing size.

8 0
2 years ago
A purchase of a French bottle of wine by a resident of Honduras would be considered an ____ when counting GDP in Honduras. As a
Misha Larkins [42]

Answer:

import, subtract. export, added

Explanation:

The GDP equation is given by  GDP = C + I + G + (X – M) where C is consumption, I investment, G is government expenditures and M are imports.

Since the bottle of wine was produced in France it had to be imported to Honduras to be consumed, imports enters the GDP equation with a minus sign. This implies imports are subtracted from the GDP equation. For a box of Honduras cigars to be consumed in Canada they had to be exported there, so these are counted as exports with enter the GDP equation with a plus sign. So exports are added.

7 0
3 years ago
Tom needs a new washing machine. A new one costs $400. He decides to save and buy one next year. All other factors being equal,
TiliK225 [7]

Answer:

$416

Explanation:

Washing Machine price = $400

Inflation Rate = 4%

So, Price Rise = (4/100) x 400

= $16

New Raised Price after Inflation = Old Price + Price rise due to inflation

= 400 + 16

= $416

8 0
3 years ago
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