Answer:
A. $6000 ordinary income on sale of a creative asset by the creator of the asset.
B. $4000 ordinary income on the sale of inventory.
C. $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Explanation:
The taxpayer sold a painting to Reller Gallery for $6000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
A. $6000 amount realized minus zero basis is equal to $6000 ordinary income on sale of a creative asset by the creator of the asset.
Reller Gallery sold the painting purchased by from Kara to a regular customer, Lollard Inc. for $10000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
B. $10000 amount realized minus $6000 cost basis is equal to $4000 ordinary income on the sale of inventory.
Lollard Inc., the tax payer, was the regular customer that purchased the painting from the Reller Gallery. Lollard showed the painting in the lobby of its corporate headquarters until it sold "Shenandoah Skies" painting to a collector from Dallas. Where the collector paid $45,000 for the painting. So, the tax payer amount and the character of tax payer gain or loss is as follows:
C. $45000 amount realized minus $10000 cost basis is equal to $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Answer:
Journal Entry to reflect the event is as follow;
Dr. Cr.
Utility Expense $520
Utility bill payable $520
Explanation:
Utility bill is received it means the expense is accrued and it is not due until the month end so a liability will be created and will be paid next month.
Answer:
<em>James did not like the fact that he had no input in his productivity goal. Because of this, his </em><em><u>Goal acceptance</u></em><em> was low and he did not take it as seriously as if he had set the same goal himself. </em>
Goal acceptance refers to the willingness of an individual to receive or consent internally to a certain goal. It is usually higher when the individual is contributes to the setting of the goal and it is low here as James did not have any input into it.
<em>Carol always tries extremely hard to reach her performance goal. She takes it personally when she falls short, which rarely happens because she is so dedicated to reaching it. Carol's </em><em><u>Goal commitment</u></em><em> is high.</em>
Goal commitment refers to how much dedication and effort a person puts into meeting an objective. Carol puts a lot of effort into achieving her goals so her Goal commitment is high.
<em>After organizational and subsidiary goals are set, each manager meets with each subordinate to explain the unit goals to the subordinate. Together the two determine how the subordinate can contribute to the unit's goals most effectively. This is called </em><u><em>Management by objectives.</em></u>
Management by Objectives is a type of management that works by making sure that employees understand the goals that management set. It works by management and employees working together to find out how best employees can meet the goals set.
Answer:
<u>buy option 384,000</u>
<u>make 394,000</u>
Purchase the pumps is a better deal as it saves 10,000 dollars.
Explanation:
This is a case of make or buy, we need to compare each alternative and pick the lower cost:
<u>buy option (outsourcing)</u>
16,000 pumps x 24 = 384,000
<u>make option (insourcing)</u>
variable cost x units + fixed cost
14 x 16,000 + 170,000 = 394,000
buy is better as it saved 10,000 cost.
