Answer:
c. Costs that can be avoided by selecting a particular course of action.
Explanation:
An avoidable cost is an expense that cannot be spent in the case when the activity is not performed. It refer to the variable cost where it can be eliminated from the busines operation like fixed cost that should be paid whether the activity is done or not
So here it can be avoided by choosing out a specific course of action
hence, the option c is correct
Answer:
Seller retains the right to the property
No professional appraisal is required, so you might pay more than the home is worth
Explanation:
A contract for deed is one that does not have the standard transfer of title from the seller to the owner. Rather the seller of a property retains title ownership while the buyer pays installmentally over time.
This agreement is common where the buyer does not meet requirements to obtain a loan. A small down payment can be made initially.
Disadvantages of contract for deed includes:
- Seller retains rights to the property, and he can cancel the contract if the buyer defaults even once on his payments.
- No professional appraisal is required, so you might pay more than the home is worth. There is no requirement for appraisal of the property so the buyer does not have a reliable estimate of property worth.
Answer:
$45,195
Explanation:
The computation of the taxable income is shown below;
But before that following calculations need to be done
Gross income is
= Gross salary + Dividend income + Interest income
= $58,755 + $245 + $295
= $59,295
Now
Adjusted gross income = Gross income - Adjustments to income
= $59,295 - $2,100
= $57,195
And, finally
Taxable income = Adjusted gross income - ( standard deduction or itemized deduction i.e. higher amount
So,
Taxable income = $57,195 - $12,000
= $45,195
Answer:
A. Debit Cash $1,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $6,000
Explanation:
When revenue is earned and cash is paid, debit cash and credit revenue. However, when revenue is earned and cash is yet to be paid, debit accounts receivable and credit revenue.
Hence, given that Smart Services performed $6,000 of services. Their customer paid $1,000 of the amount right away but charged the remaining amount.
Entries required are
Debit Cash $1,000
Debit Accounts Receivable $5,000
Credit Fees Income $6,000