Answer: it requires less objects to make the decision much easier and clearer of what the purchaser wants to get.
Explanation:
Answer:
A) Katie's maximum deduction is $200,000 x 20% = $40,000
But we must check that her deduction meets 3 requirements:
- cannot exceed 50% of her earned wages = $300,000 x 50% = $150,000 ✓ requirement met
- cannot exceed 25% of her earned wages + 2.5% of qualified property = ($300,000 x 25%) + ($150,000 x 2.5%) = $78,750 ✓ requirement met
- cannot exceed 20% of taxable income = $400,000 x 20% = $80,000 ✓ requirement met
B) Katie's maximum deduction is $400,000 x 20% = $80,000, but since her net business income is higher than her taxable income, she must calculate 20% x $350,000 (taxable income) = $70,000 (same as requirement 3 in previous answer)
Answer: Monopolistically competitive structure.
Explanation:
The restaurant industry as described in the question is a Monopolistically competitive structure. In the Monopolistically competitive structure different businesses offer a similar product for sale and they try to make their products unique and can set their prices without considering the price set by their competitors. The Monopolistically competitive structure is difficult market for new businesses to break into.
<u>Answer:</u>
<u>Closing entries
</u>
Date account and explanation Debit Credit
Dec 31 Service revenue 108000
Income summary 1080000
(To close revenue)
Dec 31 Income summary 72000
Supplies expense 6000
Salaries and wages expense 40000
Utilities expense 8000
rent expense 18000
(To close expense)
Dec 31 Income summary 36000
Owner's capital 36000
(To close income summary)
Dec 31 Owner's capital 22000
Owner's Drawing 22000
(To close withdrawal)
Answer:
5.16%
Explanation:
Missing word <em>"(Assume a face value of $1,000 and annual coupon payments."</em>
Current price of the bond = $980
FV = $1000
Coupon rate = 8%
Term = 10 maturity
After 1 year bond price = $1,200
Remaining life = 9 years (10-1)
New yield rate = [Coupon rate+(Maturity value-Current price) / Useful life] / [0.6*Current price + 0.4*Maturity value]
New yield rate = [1,000*8% + (1,000-1,200) / 9] / [0.6*1,200 + 0.4*1,000]
New yield rate = $57.78 / $1,120
New yield rate = 0.0515893
New yield rate = 5.16%
