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Mkey [24]
3 years ago
9

In 2019, UNA Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business

interest expense. It has annual average gross receipts of more than $25,000,000 over the prior three taxable years. a. What is UNA’s interest expense deduction? b. How much interest expense can be deducted if UNA’s adjusted taxable income is $300,000?
Business
1 answer:
Inessa05 [86]3 years ago
5 0

Answer:

they will deduct full of $120000 interest

they will deduct up to $112000

Explanation:

given data

adjusted taxable income =  $500,000

business interest income = $22,000

business interest expense = $120,000

annual average gross receipts = $25,000,000

solution

we know that Maximum Deduction is here express as

Maximum Deduction = ( adjusted taxable income × 30% ) + business interest income     ..................1

put here value

Maximum Deduction = ( 500000 × 30% ) + 22000

Maximum Deduction = $172000

so that here they will deduct full of $120000 interest

and

for Maximum Deduction is here

Maximum Deduction = (300000 × 30%) + business interest income    .........2

Maximum Deduction = (300000 × 30% )+22000

Maximum Deduction = $112000

so that they will deduct up to $112000

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Answer:

Government Legal minimum price = $1.20 is case of 'Binding Price Floor'

Explanation:

Price Floor is the minimum base benchmark for price of a good or service. It is usually 'binding' i.e below the equilibrium price, is done to protect the producers from under pricing, based on free market forces. Example : Minimum Support Price for farmer's agricultural products.

In this case, the price floor (minimum mandated price) is in labour market for price of labour i.e wages. It is binding also, since it imposes the minimum price (wage) floor at - wage level greater than the wage as per free market demand & supply forces. Also, it is in interest of sellers (labour sellers here) analogous to farmers MSP previous example.  

8 0
3 years ago
The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It
grin007 [14]

Answer:

There are several question

Explanation:

You do not provide the equipment adquisition value.

I will help you with this incomplete question, by giving you the procedure to reach the answers of your problem:

The <u>information about concerts is not useful </u>to determinate the straight-line depreciation, so you will ignore that part, on striaght-line you must focus on the espected life of the long-term asset, the adquisition value and the salvage value.

For depreciation expense for year 1.

You will do (adquisition value - salvage value ($2,000)) /4 years

The first part means, the ammount from which the band purchase the equipment, less the ammount they can sell it at the end of his useful life. This will be the <em>ammount subject to depreciation.</em>

Last part will be to divide this by the useful life in year.

Book value at the moment of revision will be:

<em>book value  = </em>adquisition value - acumulated depreciation

Were the acumulated depreciation will be sum of the depreciation expense over the years. In this case we only have 1 depreciation so it will be

acumulated depreciation: dep expense year 1

<em />

Remaining depreciable cost at year 1 will be:

<em>amount subject to depreciation  - acumulated depreciation</em>

remember that amount subject to depreciation will be:

adquisition value - salvage value

and the acumulated depreciation is the sum of the depreication of each year.

For depreciation expense for year 2

Then you will do (adquisition value - salvage value) / 3 years

Because the expected life decrease this value will be higher than year 1

7 0
3 years ago
In a large food or beverage establishment, on what form or schedule is any tip shortfall from a directly tipped employee recorde
Softa [21]
<span>A tip shortfall from a directly tipped employee should be recorded on form 8027. This form should be filed with the Internal Revenue Service (IRS) in order to account for allocated tips. This informs the IRS of tips that were unaccounted for to the server as being less than the expected (and set) percentage.</span>
3 0
3 years ago
You are evaluating a fund that had an annual average return of 7.2%. During that time, the average risk-free rate was 1.5% and t
PilotLPTM [1.2K]

Answer:

Risk free rate(Rf) = 1.5%

Market return(Rm) = 8%

Beta(β) = 0.8

ER(P) = Rf  + β(Rm – Rf)

ER(P) = 1.5 + 0.8(8-1.5)

ER(P) = 1.5 + 0.8(6.5)

ER(P) = 1.5 + 5.2

ER(P) = 6.7%

Alpha = Annual average return - ER(P)

         = 7.2% - 6.7%

         = 0.5%

Explanation:

In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.

7 0
3 years ago
Discount Travel has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and oth
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Answer:

The current ratio is 2.98

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total current assets = cash + receivables + inventory + other current assets

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total current liabilities = accounts payable + current portion of long term debt

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                     = 2.98

Therefore, The current ratio is 2.98

6 0
3 years ago
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