How does bad debt expense is reported on the income statement?

In 2009, the worst recession in 80 years hit the United States, generally reducing household incomes. Despite this, profits and

Lelu [443]

Answer:

These stores sell inferior goods and services.

Explanation:

An inferior good or service is a good or service whose demand decreases as the income of their consumers increases, i.e. if the consumers are earning more money, they will consume less of them.

On the other hand, when their consumers' income decreases, their demand increases.

Both McDonald's and Dollar General are business that sell cheap goods and services, so when the financial crisis decrease American households' incomes, they more people purchased their goods and services.

8 0

3 years ago

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On February 24, 2020, Allison's building, with an adjusted basis of $2,986,000 (and used in her trade or business), is destroyed

astra-53 [7]

Answer:

As a calendar-year taxpayer, Allison must make the new investment by December 31, 2020 to qualify for the nonrecognition election.

Explanation:

a) Data and Calculations:

Adjusted basis of building = $2,986,000

Insurance reimbursement = $3,881,800

Gain from loss = $895,800 ($3,881,800 - $2,986,000)

Investment in new building = $3,493,620

Purchase of stock = $388,180 ($3,881,800 - $3,493,620)

b) Allison is expected to make the election for the nonrecognition of the gain from loss in his Federal Tax return in the taxable year in which the gain with respect to the loss of the building is realized. The return must set forth the computation of the gain and other required details.

6 0

2 years ago

During its first year of operations, puffin, incorporated reported sales revenue of $388,200 but only collected $308,000 in cash

sp2606 [1]

During its first year of operations, puffin incorporated reported sales revenue of $388,200 but only collected $308,000 in cash from customers. at the end of the year, accounts receivable equals:$80200.

Annual revenue is the amount of money your business earns from sales in a year. This does not include costs and expenses. To calculate annual sales, multiply the quantity of each product sold by the selling price, then add the annual sales for each product to arrive at the total annual sales.

A legal entity is an entity that exists legally separate from its owners, managers, operators, employees, and agents. Legal entities have the same powers as individuals, including the right to own and dispose of property, the power to sue and be sued, and the power to contract for a profit. A business example is an agriculture. An example transaction is a home sale.

Learn more about revenue here

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8 0

1 year ago

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase

Vinvika [58]

Answer:

diminishing returns

Explanation:

I'll provide you with a situation as an example.

Let's say that you are running a successful ice cream company. Typically, ice creams are made with dairy. This made a certain percentage of population couldn't consume it since they are lactose intolerant. (Basically eating dairy will give them diarrhea ).

There are not many people who have this condition. Let's say that you want to increase the value of your product and use the materials that makes your product become consumable to this specific population while maintaining the original taste.

This would resulted in a small amount increase in customers base , but the investment that you need to make in order to make it happen will be substantial. You basically have to invest in researches to find the perfect ingredients, invest in additional marketing expense to educate the customers on the new product, change your current production flow, etc.

5 0

3 years ago

The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than t

zmey [24]

Answer:

The discount rate that makes the net present value equal to zero.

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

It is the discount rate that makes the net present value equal to zero.

I hope my answer helps you

8 0

3 years ago