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Ymorist [56]
3 years ago
6

is year, Amy purchased a personal residence at a cost of $1,000,000. She borrowed $800,000 secured by the home to make the purch

ase. This year, she paid interest expense on this mortgage of $12,000. How much may she deduct?
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

 Deductible Interest is $11,250

Explanation:

Compute at the amount of $750,000 the interest Amy could deduct as follows:

Since the interest on loan secured by home could be deduct on the first $750,000 borrowing amount. Hence,

 Deductible Interest = Interest Paid × ($750,000 / Loan Secured by income)

 Deductible Interest = $12,000 × ($750,000 / $800,000)

 Deductible Interest = $11,250

Hence, the Amy could deduct interest on borrowing $11,250

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The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of mi
drek231 [11]

Answer:

Price floor binding

b. price ceiling binding

price floor and binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

The minimum price of milk is above equilibrium price. So, it is a binding price floor

The maximum price of milk is below equilibrium price. It is binding price ceiling

If teenagers can't find jobs due to minimum wages law. It means that the minimum wage must be above equilibrium price. This is because it is when price is above equilibrium price that supply of labour outstrips demand. So, it is a binding price floor

8 0
3 years ago
You could spend four years studying at the world's best university, but you would have to keep your attendance there a secret. O
horrorfan [7]

Answer:

The best future earnings outcome would come from getting the official degree even if you do not attend any classes.

In the labor market, a degree from the world's best university holds great prestige and increases enormously the possibilities of being hired to high-paying jobs. However, you should make sure that you actually take the courses that you are supposed to have learned while "attending".

The other option is worse because while you would easily be able to demonstrate knowledge and competence, few companies would even consider to hire you if you do not hold a degree.

6 0
3 years ago
In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, m
Airida [17]

Answer:

sharing information across the organization.

Explanation:

ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.

Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.

6 0
3 years ago
The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3:
frozen [14]

Answer:

Pick-A-Pet, Inc

a. Classified Balance Sheet as of June 30, Year 3:

Assets

Current Assets:

Cash                       $1,182,600

Accounts Receivable 419,200     $1,601,800

Equipment                   58,400

Software                     118,500

Logo & Trademarks  421,600      $598,500

Total assets                               $2,200,300

Liabilities and Equity:

Current Liabilities:

Accounts Payable                      $ 349,200

Long-term Liabilities:

Long-term Notes Payable          $418,900

Total liabilities                             $768,100

Equity:

Common Stock      962,100

Retained Earnings 470,100 $1,4322,200

Total liabilities + equity         $2,200,300

b. Effects of the July transactions on the basic accounting equation:

Assets = Liabilities + Equity

1. Stockholders contribute $300,000 cash for additional ownership shares

Assets (Cash + $300,000) = Liabilities + Equity (Common Stock + $300,000)

2. Company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years.

Assets (Cash + $150,000) = Liabilities (Long-term Notes Payable + $150,000)  + Equity

c. Journal Entries to record the July transactions:

1. Debit Cash $300,000

Credit Common Stock $300,000

To record the additional capital contribution by stockholders.

2. Debit Cash $150,000

Credit Long-term Notes Payable $150,000

To record the borrowing of cash from a bank, repayable in 2 years.

Explanation:

a) Data and Calculations:

Accounts Payable $ 349,200

Accounts Receivable 419,200

Cash 732,600

Common Stock 662,100

Equipment 58,400

Logo and Trademarks 421,600

Long-term Notes Payable 268,900

Retained Earnings 470,100

Software 118,500

July Year 3 Transactions and Effects on accounts:

Cash                   732,600

Common Stock 300,000

Notes Payable   150,000

Cash                1,182,600

Common Stock  662,100

Cash                  300,000

Common Stock 962,100

Long-term Notes Payable 268,900

Cash                                   150,000

Long-term Notes Payable 418,900

Modified account balances:

Cash                1,182,600

Accounts Receivable 419,200

Equipment 58,400

Software 118,500

Logo and Trademarks 421,600

Accounts Payable $ 349,200

Long-term Notes Payable 418,900

Common Stock 962,100

Retained Earnings 470,100

6 0
3 years ago
All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sal
solmaris [256]

Answer: $51,000

Explanation:

Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale.

In March therefore, the cashflow will consist of;

35% of March sales

45% of February sales

20% of January sales

= (35% * 40,000) + (45% * 60,000) + (20% * 50,000)

= 14,000 + 27,000 + 10,000

= $51,000

7 0
2 years ago
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