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Leya [2.2K]
3 years ago
15

1. A county's general fund has $4,000,000 in purchase orders outstanding at the beginning of 2020. The orders are delivered in 2

020 and the county pays the suppliers $4,000,000. Expenditures ordered, delivered and paid for in 2020 total $35,000,000. Near the end of 2020, encumbrances for $5,000,000 in purchase orders are recorded. Encumbrances are reported in fund balance—assigned. Using the legal budgetary basis, what amount does the county report for expenditures in 2020? A. $35,000,000 B. $40,000,000 C. $39,000,000 D. $44,000,000
Business
2 answers:
nata0808 [166]3 years ago
4 0

Answer: C

$39,000,000

Explanation:

Using the legal budgetary basis, this should be reported. Decision makers have the scope in determining how the agency’s monies are actually spent. The limitations may result from legal restrictions on how funds may be used, matching funds issues (that will result in loss of revenues if the agency does not spend a certain amount), and state mandates.

ONLY the expenditure made in reference to 2020, will be accounted. Since the $5,000,000 is going to be for the next year so it's not added.

Basile [38]3 years ago
4 0

Answer:

C. $39,000,000

Explanation:

In utilizing the legal budgetary basis, this will have to be reported. the scope and manner that will shape how the agency’s monies are actually spent will now be open to the decision makers. The limitations may be as a result of legal restrictions on how funds may be used, matching funds issues (which will later result in loss of revenues if the agency does not spend a certain amount), and state mandates.

ONLY the expenses made or incurred in reference to 2020, will be accounted. Since the $5,000,000 is expected to be for the next year so it's not added.

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Based on his investment advisor's guidance, Christopher sold two stocks during 2020. The capital gain on the sale of Magnificent
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Answer:

The question is incomplete since we are not told if the capital gain is a short or long term gain. So I will answer the question in both possible scenarios.

Short term capital gains:

They are taxed as ordinary income, so the net gain = $35,000 - $7,000 = $28,000

Net gain after taxes = $28,000 x (1 - 53.31%) = $13,073.20

Long term capital gains:

They are taxed at a much lower rate that ranges from 0 to 20%. In this case, Christopher is probably taxed at 20%.

Net gain after taxes = $28,000 x (1 - 20%) = $22,400

Explanation:

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3 years ago
Read 2 more answers
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