Answer:
a. Orange Furniture must include <u>$1,000</u> in gross income as the recovery of a prior deduction cost.
Since the 2016 bad debt deduction resulted in a tax benefit, the $1,000 recovery will be considered income. Orange's cost for this transaction = (35% 2015 tax rate - 12% 2016 tax rate) x $1,000 recovery = 23% x $1,000 = $230
b. How much must Marvin include in his gross income for 2017? <u>$800</u>
Marvin's net benefit from itemizing his taxes was $800, so that amount must be included as gross income due to the state's refund. Marvin will actually suffer a lose due to this transaction since during 2016, he was in the 15% tax bracket, while during 2017 his tax bracket is 35%. He saved 15% x $800 = $120 for 2016, but will have to pay 35% x $800 = $280 during 2017.
c. What amount, if any, will Barb include in her 2017 gross income? <u>$3,000</u>
Since Barb was able to recover the medical expenses, she must include in her gross income the tax benefit that she received for itemizing her deductions.
Answer:
$1,000; $1,000
Explanation:
Given that,
Household saving = $300
Business saving = $700
Government purchases = $1,000
Government transfers and interest payments = $500
Government tax collections = $1,500
GDP = $5,000
Public saving:
= Government tax collections - Government purchases - Government transfers and interest payments
= $1,500 - $1,000 - $500
= $0
Private savings:
= Household saving + Business saving
= $300 + $700
= $1,000
National savings:
= Public saving + Private saving
= $0 + $1,000
= $1,000
The <u>distribution </u>organizes data by recording all of the values observed in a sample, as well as how many times each value was observed.
The distribution of a sample of data organizes records by way of recording all the values found and the way many times every price is located. In a dot plot each commentary is represented by a dot on a variety of lines. In a histogram bars are drawn to expose how many observations lie in every bin.
The high-quality technique for investigating causal relationships is an test - now not an observational a look at - due to the fact a test functions randomized mission of topics to remedy agencies.
Data distributions are used to prepare and show statistics approximately a fixed of accrued facts. Common distributions consist of tally charts, dot plots, box plots, and histograms.
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Answer:
true
Explanation:
businesses need products and services too
Answer:
482.500
Explanation:
With the direct write-off method all accounts when detected as uncollectible, the amount of the client's debt is charged to the expense, while an estimate is made with the allowance method (this method is the most accepted accounting)
The direction of these methods in this case is translated in this way
allowance method 3,250,000 X 1% = 32,500.
Direct writte off 27,800
The difference between these values, which is 4,700, corresponds to a higher forecast, therefore, to a higher expense for the year, so that the net result will be reduced
Net result 487,500 minus 4,700 = 482,800