Answer:
correct option is (a) The lesser of 50% of business wages or 25% of wages plus 2.5% of the unadjusted basis of qualifying property
Explanation:
As we know that when a single taxable income of the single filer is exceed by $157,000 by the $50000 or more, then their QBI must not exceed
so
- 50% of the taxpayer's share of W-2 wages paid in respect of a qualified trade or occupation
- 25% of such salary and 2.5% on a volatile basis immediately after acquiring the tangible depreciation asset
Qualified Business Income (QBI) exemption refers to taxable income recognized by a partnership, S corporations, LLC or sole proprietorship. This is below the line deduction that does not deduct your AGI, but it does reduce the amount of taxes.
Answer: Option C
Explanation: Manufacturing overhead refers to the that portion of the cost which cannot be allocated to the units produced in a reasonable manner. These costs are indirectly related to the product manufactured. For example = depreciation, rent etc.
Thus, the cost of glue cannot be allocated to each individual unit produced. As the worker might put a more in one unit and a little less in the other.
Thus, from the above we can conclude that the correct option is C.
Answer:
18%
Explanation:
The computation of the average rate of return is shown below:
The average of annual income is
= $936,000 ÷ 8 years
= $117,000
And, the average investment is
= ($1,200,000 + $100,000) ÷ 2
= $650,000
Now the average rate of return is
= $117,000 ÷ $650,000
= 18%
Answer:
The answer is $38,500
Explanation:
Operating activities: Cash generated or used to run the day-to-day business operations.
Investing activities: Cash used for investing in assets like securities, bonds, equipment, or proceeds from these assets.
Financing activities: Cash generated from loan and/or payments made to reduce loan balances
Ending cash balance = Net Cash from operating activities + net cash from investing activities - net caash from financing activities + Beginning cash balance
Ending cash balance = $35,500 + $13,000 - $16,500 + $6,500
$38,500
Answer:
The best estimate of the company’s cost of equity is 11.99%.
Explanation:
CAPM based required return = 5% + 1.1*7%
= 12.7%
Dividend model required return
35 = (1.40*1.07)/(r - 0.07)
r - 0.07 = 0.0428
r = 11.28%
The best estimate of the company’s cost of equity is the mean of two = (12.7% + 11.28%)/2
= 11.99%
Therefore, The best estimate of the company’s cost of equity is 11.99%.
