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Fynjy0 [20]
3 years ago
11

Armando, a manager for Petros Pizza Pies (PPP), dies in an accident on July 12. PPP pays his wife, Penelope, $600 in salary that

had accrued before Armando died. Armando was covered by a $90,000 group term life insurance policy, which is also paid to Penelope. In addition, the board of directors of PPP authorizes payment of $6,000 to Penelope and $4,000 to their child in recognition of Armando's years of loyal service and contributions to the success of the company. What are the tax consequences of the payments to Penelope and her child?
Business
1 answer:
stepan [7]3 years ago
8 0

Answer:

Explanation:

Ms. P receives $6,000 from Company P due to her husband A's loyal service and She receives $600 that her husband earned prior to his death. Hence, Ms P earns a total of $6,600 ($6000 + $600) gross income.

The amount of $90,000 receive from the life insurance proceeds are excluded from the gross income.

Ms P's daughter receives $4,000 from company P. It should be included in her daughter income.

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Answer:  " DECREASES" .___________________________________
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3 years ago
applied vs. actual manufacturing overhead davis manufacturing corporation applies manufacturing overhead on the basis of 150% of
Mashcka [7]

Answer:

Subapplication of    22,500

journal entry:

WIP                   4,500 debit

finished goods 2,250 debit

COGS               15,750 debit

    factory overhead               22,500 credit

Explanation:

Direct Labor cost during the year:

60,000 + 30,000 + 210,000 = 300,000 direct labor

<u></u>

<u>Applied overhead:</u>

cost driver x predetermined rate

300,000 x 150% = 450,000

Actual overhead:   472,500

Subapplication of    22,500

as this is a significant amount we must adjust the WIP  inventory, cost of goods sold and fnished goods inventory

to know the adjustment on each account we calcualte each account percentage:

300,000   -->   22,500

60,000 --> 60,000/300,000 x 22,500 = 4,500 endingWIP

30,000 --> 30,000/300,000 x 22,500  = 2,250 finished goods

210,000--> 210,000/300,000 x 22,500 = 15,750 COGS

we do the adjuting entry to increase overhead and transfer into each concept

8 0
3 years ago
Tampa Company has the following information: Total estimated manufacturing overhead costs $300,000 Total estimated direct labor
Anarel [89]

Answer: 33.3%

Explanation: The predetermined overhead rate allocates the manufacturing overhead to products. This is based on an estimate, as it is done at the beginning of the financial year. It uses an allocation base, which is usually a cost driver. A cost driver is a type of activity that causes a change in the cost of said activity. Examples of cost drivers usually used are: direct labour hours or machine hours.

The formula for calculating the predetermined overhead rate is:

Total estimated overhead costs ÷ total estimated overhead allocation base (estimated direct labour costs is used)

300 000 ÷ 900 000 = 0.33333 × 100 = 33.3%

6 0
2 years ago
A first step when considering a career is to________.
Dafna1 [17]
The first step when considering a career is to assess yourself.
3 0
3 years ago
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Jacob is the owner of a film production company. He promotes a healthy work-life balance for his employees. He also encourages t
babymother [125]

Answer:

The country club style.

Explanation:

The country club style is a leadership style in which there is a high concern for people and low concern for the results which means that the manager is interested in his employees' needs and believes that they will work hard if they are in a good working environment. In terms of results, this tends to be a style in which the manager is relaxed and productivity can be low because there isn't a lot of control. According to this, the leadership style that Jacob is using in this scenario is the country club style because he believes that a healthy work environment is important and he doesn't do anything when his employees miss their deadlines.

6 0
3 years ago
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