Answer:
b) Fred must maintain records for 6 years from the year the return was filed
Explanation:
A person that prepares tax is required by the Internal Revenue Service to keep tax returns and supporting documents for at least 3 years.
However when the tax preparer fails to report correct income amount they are required to keep records for at least the last 6 years.
The underreported income must be greater than 25% of the income.
In the given scenario the Fred reported $10,000 instead of $13,500.
The unreported amount is $3,500
Percentage not reported = (3,500 ÷ 13,500) * 100 = 25.925%
So Fred will need to keep records for the next 6 years
Answer:
cost of goods available for sale= $29,100
Explanation:
Giving the following information:
Sales Revenue$26,000
Beginning Finished Goods Inventory8,000
Ending Finished Goods Inventory13,500
Cost of Goods Manufactured15,600
cost of goods available for sale= beginning finished goods inventory + purchases
We have to find the amount of purchases.
We know that:
cost of goods manufactured= Beginning Finished Goods Inventory + purchases - Ending Finished Goods Inventory
15600= 8000 + purchases - 13500
purchases= 15600 - 8000 + 13500
purcases= 21,100
cost of goods available for sale= 8000 + 21100= $29,100
Answer:
d. opportunity cost of going to graduate school is too high.
Explanation:
The cost of choosing an alternative instead of another is known as the opportunity cost. In order to obtain a PhD, athletes would have to delay their professional careers, which would cause then to potentially miss out on years of millionaire contracts. Therefore, the opportunity cost of going to graduate school is too high.
Answer and Explanation:
First Link Services granted
1. Total compensation
$4.4 million × $5
=$ 22 million
2.
Dr Compensation Expenses 11 million
Cr Paid in capital restricted stock 11 million
Dr Paid in capital restricted stock 22 million
Cr Common stock 4.4 millon
Cr Paid in capital excess of 17.6 million
Answer:
17.83%
Explanation:
The computation of required rate of return is shown below:-
Required rate of return = ((Expected dividend ÷ (Current Stock price × (1 - Flotation cost as a percentage of issue price)) + Growth rate)) × 100
= ((Dividend × (1 + Growth rate)) ÷ Current Price of stock × (1 - Flotation cost as a percentage of issue price)) + Growth rate))) × 100
= ($3 × (1.04) ÷ $24 × (1 - 0.06) + 0.04) × 100
= ($3.12 ÷ $22.56 + 0.04) × 100
= (0.138297872 + 0.04) × 100
= 17.82978723
or
= 17.83%
Therefore we have applied the above formula.
