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OLga [1]
3 years ago
10

Juanita knits blankets as a hobby and sells them. In the current year, she earns $5,000 from her blanket sales and incurs expens

es of $600. Juanita does not itemize deductions. On her tax return, she shouldA) report $5,000 of hobby income and deduct $500 of hobby expenses from AGI.B) report $5,000 of hobby income and deduct $400 of hobby expenses for AGI.C) report $5,000 of hobby income and deduct nothing from AGI since Juanita does not itemize deductions.D) report no hobby income and no hobby deductions.
Business
1 answer:
nirvana33 [79]3 years ago
6 0

Answer:

C) report $5,000 of hobby income and deduct nothing from AGI since Juanita does not itemize deductions.

Explanation:

After the passage of the Tax Cuts and Jobs Act (HR 1, “TCJA”) from the period 2018 to 2025 the hobbies deduction is no longer valid.

Thus Juanita cannot declare any deduction. As hobbies aren't businesses. They aim for fun and entertainment not profit is not entitled to the tax deduction businesses are.

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A person or organization that has a vested interest in a particular aspect of the planning or operation of an organization is a(
Ghella [55]

Answer:

Stakeholder

Explanation:

A stakeholder may be in form of an individual, group or organization who is affected by the result of a venture. They have an enthusiasm for the accomplishment of the venture, and can be inside or outside the association that is supporting the undertaking. Partners can impact the venture.

Example of stakeholder is employees, government etc

6 0
3 years ago
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
3 years ago
The owners of Spokes Bicycle Shop worry that cash flow this winter may be insufficient to meet the current operating expenses. W
Grace [21]

Answer:

Short-term.

Explanation:

Short-term can be explained to be financing of business for short period of time from different sources. This financing are seen to be in the periods of a year and is said to be for smaller scale businesses.

It is easily necessary to secure additional funds to cover expenses, especially for those smaller businesses or to take the next step in growing the business. These short term loans are seen to be a lending option that work for many businesses that experience seasonal revenue fluctuations, and are easily taken back from the enterprise on a daily basis or monthly to cover up for the year.

5 0
3 years ago
Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 24 percent. The company has $143,500 in outst
Dima020 [189]

Answer:

The value of the firm according to M&M Proposition I with taxes is $513,824.62

Explanation:

Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]

Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%

Value of firm = 62320 / 0.13 + 143500 x 0.24

Value of firm = 479,384.62 + 34,440‬

Value of firm = $513,824.62‬

7 0
3 years ago
Which one is NOT considered an universal virtue?
Juli2301 [7.4K]

Answer:

B - happiness

Explanation:

cause it's not a must for a person to be happy

5 0
3 years ago
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