Answer:
option (a) is correct.
Explanation:
Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.
Whereas the accounting profits takes into the effect of explicit costs only.
Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.
Explicit costs refers to the costs that are incurred for operating or running a business.
Accounting profit = Total revenue - Explicit costs
Economic profit = Total revenue - Explicit costs - Implicit costs
Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.
Answer:
$59,410
Explanation:
With regards to the above information, we need to calculate first, total number of units for first quarter of the year.
Total number of units for first quarter of the year = 2,960 + 2,740 + 3,440
= 9,140
But, each unit requires 0.5 hours of direct labor.
It therefore means that;
1 unit need ----- 0.5 hours of direct labor
9,140 ----- ?
= (9,140 × 0.5) / 1
= 4,570 hours.
Finally, we will multiply the total hours by the payment per hour, or direct labor rate; which is $13 per hour.
= 4,570 × $13
= $59,410
Therefore, the budgeted direct labor cost for the first quarter of the year is $59,410
Answer:
$48,200
Explanation:
Given:
Selling price of home = $140,000
Acquisition price = $45,000
Closing cost = $2,000
Cost of fireplace and family room = $35,000
Real estate commission = 0.07 × 140,000 = $9,800
Total adjusted basis = 45,000 + 2,000 + 35,000 + 9,800
= $91,800
Taxable gain = Selling price - adjusted basis
= 140,000 - 91,800
= $48,200
The statements are:
Because Dazzle is not a separate tax entity, all the owners declare revenue earned through the company on their personal federal tax returns.
The $5 million dollar villa is protected from business liabilities unless the liability is incurred through wrongful acts.
