1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
neonofarm [45]
3 years ago
15

A sole proprietorship: Multiple Choice provides limited financial liability for its owner. involves significant legal costs duri

ng the formation process. has an unlimited life. has its profits taxed as personal income.
Business
1 answer:
zalisa [80]3 years ago
5 0

Answer:

Has its profits taxed as personal income

Explanation:

Sole proprietorship: The sole proprietorship is the person who is the single owner of a company. He is personally liable for all the acts which are held in the company. In this, there is no separate entity between the company and its members.

Moreover, during filling the return, the owner has to file a tax based on the profits on its personal income

Its owner choice to continue the business for longer period or for a shorter period. So, it does not has unlimited life, neither it have limited financial liability nor it involves significant legal costs during the formation process.

So, a sole proprietorship has its profits taxed as personal income.

You might be interested in
A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: Th
xenn [34]

Answer:

The value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

Explanation:

Since the student's desired return of 6% will also start to be paid starting on his 65th birthday, the value of this deferred annuity today on his 50th birthday can be calculated by first calculating the value of the investment on the 65th birthday.

We therefore proceed with the following two steps:

Step 1: Calculation of the value of the investment on the 65th birthday

The value of the investment on the 65th birthday can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV at 65 = Present value of the annuity at 65th birthday =?

P = Annuity payment = Invested amount * Student's desired return = $8,900 * 6% = $534

r = Student's desired return rate = 6%, or 0.06

n = number of more years anticipate to live after 65th birthday = 21

Substitute the values into equation (1) to have:

PV at 65 = $534 * ((1 - (1 / (1 + 0.06))^21) / 0.06)

PV at 65 = $534 * 11.764076621288

PV at 65 = $6,282.02

Therefore, the value of the investment on the 65th birthday is $6,282.02.

Step 2: Calculation of the value of this deferred annuity today on his 50th birthday

The value of this deferred annuity today on his 50th birthday can therefore be calculated using the simple present value for as follows:

PV at 50 = PV at 65 / (1 + r)^N …………………………….. (2)

Where;

PV at 50 = the value of this deferred annuity today on his 50th birthday = ?

PV at 65 = Present value of the annuity at 65th birthday = $6,282.02

r = Student's desired return rate = 6%, or 0.06

N = number of years from 50th birthday to 65th birthday = 65 - 50 = 15

Substitute the values into equation (2) to have:

PV at 50 = $6,282.02 / (1 + 0.06)^15

PV at 50 = $6,282.02 / 2.39655819309969

PV at 50 = $2,621.27

Therefore, the value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

5 0
2 years ago
The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it. W
Arlecino [84]

Answer:

                               General Journal

Accounts Titles and Explanation          Debit     Credit

Office supplies                                        $295

Advertising expense                               $120

Transportation expense                          $75

<em>Cash short and over                                $11 </em>

Cash ($800 - $299)                                                 $501

(Being replenishment of fund recorded)

5 0
3 years ago
The Blumer Company entered into the following transactions during 2012: 1. The company was started with $22,000 of common stock
ahrayia [7]
Where is the question?
8 0
3 years ago
Transactions involving the purchase and sale of fixed assets would be considered _______ activities.
ohaa [14]
Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.
4 0
3 years ago
A service animal can. A) cat. B) Snake C) Miniature horse D) Kangaroo true or false
Taya2010 [7]
False, because you can't really use those animals for a service.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported
    11·1 answer
  • Which of the following is a business plan most similar to? A pinball machine
    11·1 answer
  • Whos the real dirty dan
    7·1 answer
  • Which of the following pieces of information is needed to compute flow time at a dentist's office?
    11·1 answer
  • In a small, closed economy, national income (GDP) is $350.00 million for the current quarter. Individuals have spent $100.00 mil
    5·1 answer
  • _____ are observable, statistical aspects of populations including such factors as age, gender, or income. Group of answer choic
    5·1 answer
  • Bronigan’s, a maker of handheld video games, recently analyzed its manufacturing process to identify value-added and non-value-a
    5·1 answer
  • What happens to your employer-sponsored retirement plan if you decide to change employers?
    9·2 answers
  • The field of economics is most concerned with studying:
    8·1 answer
  • The annual return on the s&amp;p 500 index was 12.4 percent. the annual t-bill yield during the same period was 5.7 percent. wha
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!