Answer:
A, $12,000
Explanation:
Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.
To calculate the profit from the sale of the bicycles, we use the formula
Profit = (marginal cost x quantity of bicycles) - Expenses.
we have,
Profit = ($200 x 100) - $8,000
Profit = $20,000 - $8,000
Profit = $12,000.
Cheers.
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
A workout is also referred to as the conditioning phase of a training session
