When Raphael Corp. incorrectly mentioned an expense of equipment addition instead of capitalizing the effect of the same, then in such case, the net income of the company is understated in the financial statements.
<h3>What is net income?</h3>
The income which is left at the end of an organization at the end of a financial period after making all the regulatory and compliant payments and deductions, such as taxes and depreciation, it is known as net income.
Hence, the significance of net income is aforementioned.
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Answer:
Paid-in Capital in Excess of Par Value will be credited for $120,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $140,000
To common stock (4,000 shares × $5) = $20,000
To Paid-in Capital in Excess of Par Value $120,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
Answer:
120 gizmos.
Explanation:
We have been given that the weekly profit of a company is modeled by the function 
. The weekly profit, w, is dependent on the number of gizmos, g, sold. The break-even point is when 
.
To find the number of gizmos the company must sell each week in order to break even, we will substitute in profit function as:
Now, we will use quadratic formula to solve for g.
We will take the larger value for the number of gizmos.
Therefore, the company must sell 120 gizmos each week in order to break even.
Answer:
This question is about Corporate Social Responsibility (CSR), which is basically being socially responsible (with the employees, community, environment, etc.) and at the same time trying to maximize the financial value of a company (which is a duty to shareholders).
It might be easier for some companies, e.g. service providers, while much harder for mining companies (and other extracting companies). But it doesn't meant that all companies should try their best to do it.
Some companies even benefit from being socially responsible and increase their income through higher sales, e.g. Ben and Jerry's actually increased their sales of ice cream by focusing on CSR.
Even small businesses can benefit from CSR since it increases customer awareness and loyalty, and that can lead to higher sales. E.g. the public image of local businesses that help to finance certain community services improves and that eventually leads to higher sales.
Customers tend to favor companies that they consider to be socially responsible, and if they have to decide between purchasing from a socially responsible company or from another that isn't, they will generally purchase form the socially responsible one.
For regular tax purposes, with regard to the itemized deduction for qualified residence interest, home equity indebtedness incurred during a year: Is limited to $100,000 on a joint income tax return.
Explanation:
The debt of household property is entitled to a joint return of $100,000. Home equity debt is any mortgage not obtained by a qualifying property.
The reasonable market value of the home shall not be greater than that of the purchase loan or the lesser amount of $100,000.
The debt to purchase, create, and substantially improve a qualifying residence is the debt owed in the purchasing, construction and securing of such house (a 1 million dollars limited).
The certain value on debt that outperforms these limits can not be subtracted.
