Answer:
The amount may he deduct as interest in 2015 is $960.
Explanation:
As per the provision of IRS (reference to 550), any amount of interest due towards money borrowed for investment purposes (also known as investment interest) can be claimed as a deduction. Therefore, it becomes important to allocate the total amount of loan/borrowing between the amount utilized for personal/business purposes and investment purposes.
In the given case, George has borrowed $20,000, out of which $16,000 has been used for investment purposes, that is, 80% (16,000/20,000*100%), while the remaining 20% (4,000/20,000*100) is used for personal purposes (purchase of four-wheel recreation vehicle).
Out of the total interest of $1,200 (20,000*8%*9/12) due on the amount borrowed, $960 (1,200*80%) can be claimed as deduction (in the form of investment interest). The remaining $240 cannot be claimed as deduction.
Therefore, The amount may he deduct as interest in 2015 is $960.
Answer:
8.5
Explanation:
Account receivable turnover is calculated by dividing the net credit sales by the average of account receivable .
Net sales $569,000
Account receivable $91,000
Account receivable - $43000
Average account receivables = (91000+43000)/2= $67,000
Account receivable turnover = 569000/67000 =8.5
I’m going to say B but at the same time I think it’s A
Answer:
a)Total cost per unit =$41.729
b)ROI = $6,290,730.
c) Mark-up = 27.7%
Explanation:
a)
The total cost per unit = variable cost + fixed cost per unit
Fixed cost unit = ($3,318,400 +$1,626,560)/544,000 units
= 9.089
Total cost per unit = 6.87+10.77+15 +9.089
=$41.729
b)
Desired ROI = 23%. × 27,351,000= $6,290,730.
c)
Mark-up
Mark-up is profit/target cost cost
Profit per unit = $6,290,730./544,000 units
= 11.56 =
Mark-up = (11.56/41.729) × 100 = 27.7%
I would say the shareholders could disapprove of the performance of their company if it was to consistently to lose money over say several quarters with no signs of improvement or no encouragement by management that this was a temporary situation,
