Answer:
$15,000
Explanation:
Calculation to determine How much of the casualty loss will be a tax deduction to Zeta, Inc.
Using this formula
Casualty loss tax deduction=Casualty loss-Insurance recovered
Let plug in the formula
Casualty loss tax deduction=$45,000-$30,000
Casualty loss tax deduction=$15,000
Therefore the amount of the casualty loss that will be a tax deduction to Zeta, Inc. is $15,000
Answer:
a) Net Income = $490,700
b) Journal Entry
Debit Construction in process $175,000 Credit Deferred Tax Liability $52,500 Credit Retained earnings $122,500
Explanation:
a) PreTax income $701,000
Tax ( 701,000*30%) 210,300
Net Income =490,700
Deferred Tax Liability = 175,000*30% =52500
Retained Earnings = 175,000 *70% = 122,500
Answer:
$10,000
Explanation:
The computation of the increase or decrease of income from operations is shown below
Without Credit
Income from Operations is
= $100,000 - $40,000
= $60,000
And,
With Credit
Income from Operations is
= 2 × ($100,000 - $40,000) -$50,000
= $70,000
So, there is Increase in Income from Operations i.e.
= $70,000 - $60,000
= $10,000
Answer:
The correct answer is option B.
Explanation:
A perfectly competitive industry is producing 30,000 yachts per year.
The government imposed a tax of $20,000 on each yacht.
The demand for yachts is highly elastic.
This imposition of tax will create a tax wedge in which the tax burden will be shared between buyers and sellers.
The price paid by the buyers will increase. While the price received by sellers will decrease.
This tax wedge causes the quantity demanded and quantity supplied to fall. As a result, the equilibrium quantity in the market declines.
Since the demand is highly elastic an increase in price will cause the quantity demanded to decrease by more than proportionate.
The price of the product will increase by less than $20,000 as the tax burden will be shared.
Answer:
C) dismissed the suit because of the arbitration agreement.
Explanation:
The whole purpose of an arbitration agreement is to avoid lawsuits. In this case, both Miller and her employer signed the agreement voluntarily, so the agreement is valid.
The arbitration agreement is a method for resolving disputes outside regular court, where both sides agree to present their arguments to an arbitrator that will decide who is right. The arbitrators resolutions (arbitration award) is legally binding and it can be enforced by a court.