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Anna007 [38]
3 years ago
10

Molly operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership cos

ts $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month). Cash payment is required at the beginning of the membership period. On July 1, 2019, Molly sold a one-year membership and a two-year membership.
I. If Molly is a cash basis taxpayer, her 2015 gross income from the contracts is $960 ($360 + $600).
II. If Molly is an accrual basis taxpayer, her 2015 gross income from the contracts is $330 [(6/12 × $360) + (6/24× $600)].
III. If Molly is an accrual basis taxpayer, her 2016 gross income from the contracts is $630 [(6/12)($360) + $450]

a) Only I is true.
b) Only I and II are true.
c) Only II and III are true.
d) I, II, and III are true.
e) None of the above.
Business
1 answer:
zlopas [31]3 years ago
8 0

Answer:

d.  I, II, and III are true

Explanation:

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A medical student will complete her residency and go into medical practice in 4 years. She needs to purchase expensive medical e
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Answer:

3. Expected inflation rate

Explanation:

To determine the amount of money that the medical student must invest today to meet this capital need, she needs to know the current cost of medical equipment to have the the amount she needs to be able to buy the equipment. Also, she has to know the assumed rate of return to determine the amount of interest she will receive as the formula to calculate the money she needs today is:

PV= FV/(1+r)^n, where:

PV= present value

FV= future value

r= rate of return

n= number of periods of time

According to this, the answer is that the option that she doesn't need to find the amount of money that must be invested today to meet this capital need is the expected inflation rate as the formula to calculate the present value considers the amount she will need, the rate of return and the period of time.

6 0
4 years ago
Janice Hartley works as a writer at a fashion magazine in New York. She was recently asked by her editor to write an article on
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Answer:

C

Explanation:

Affective component has been displayed as mood and feelings have been touched as a result of the feedback Janice got from her boss.

Cheers

5 0
4 years ago
Betty Lou has a car washing and detailing business. She charges​ $20 to wash a​ car, a process that takes her 20 minutes and req
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The correct answer is; Raise her prices on the car detailing or only wash cars.

Further Explanation:

It makes the most sense that Betty Lou raise the pricing on the car detailing. Since the materials cost more than the washing materials and car detailing takes more time, she is losing money in the long run.

If Betty doesn't want to raise her prices, she should only continue to wash cars since she can do this faster and make more money on average. This is the most efficient use of her resources. Betty can use advertising to get more clients and repeat clients that liked her car detailing will be willing to pay more for her services.

Learn more about money resources at brainly.com/question/13726693

#LearnwithBrainly

5 0
3 years ago
Andrew sold IBM stock to his sister Susan for $6,000. Andrew purchased the stock two years ago for $8,000. Susan sold the stock
klasskru [66]

Answer:

c. $1,300 gain

Explanation:

In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.

$7,300 - $6,000 = $1,300

6 0
3 years ago
Suppose that annual income from a rental property is expected to start at ​$ per year and decrease at a uniform amount of ​$ eac
Aloiza [94]

Answer and Explanation:

Year    Cash Inflow      Discounting factor 9%, 12 Years   Present Value

0        -$8,200                         1                                 -$8,200.00

1          $1,350                               0.8929                               $1,205.42

2          $1,295                              0.7972                               $1,032.37

3          $1,240                               0.7118                                $882.63

4          $1,185                                0.6355                              $753.07

5           $1,130                               0.5674                               $641.16

6           $1,075                               0.5066                              $544.60

7            $1,020                              0.4523                              $461.35

8            $965                                0.4039                              $389.76

9             $910                                 0.3606                             $328.15

10            $855                                0.322                               $275.31

11            $800                                0.2875                              $230.00

12            $745                                 0.2567                            $191.24

Net Present Value                                                                  -$1,264.95

Since the net presnet value comes in negative so it is not beneficial for a company as it is not able to cover the initial investment

6 0
3 years ago
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