Answer:
Newark's cost of sales is A $307,000
Explanation:
Cost of Sales can be determined by using the Missing figure Approach for this question.
Cost of Sales = Sales less Gross Profit
<u>Calculation of Sales figure :</u>
Cash sales, $450,000
Credit sales, $1,350,000
<em>Less</em> Sales returns and allowances, ($90,000)
<em>Less</em> Sales Discounts ($43,000)
Sales $1,667,000
<u>Calculation of Cost of Sales</u>
Thus Cost of Sales = $1,667,000 - $1,360,000 (given)
= $307,000
Answer: In preparing a company's statement of cash flows for the most recent year, Ransom Corp. reported the following information: Repayment of outstanding bonds $107,000 Purchase of treasury stock $62,000 Issuance of common stock $46,000 Payment of cash dividends $15,000 Net cash flows from financing activities for the year were <u>$138,000.</u>
Explanation:
Repayment of outstanding bonds ($107,000)
Purchase of treasury stock (62,000)
Issuance of common stock 46,000
Payment of cash dividend (15,000)
Net cash used by financing activities = $107,000 plus $62000 minus $46,000 plus $15,000 equals $138,000.
Answer:
The disallowed loss may be used to offset gain on the subsequent sale
Explanation:
A recognized gain or loss is simply refered to as the gains or losses that increase or decrease the gross income of taxpayers.
The Internal Revenue Code (IRC) §267 had laid out rules guiding or relations to the deductions of either losses or expenses between 2 or more related parties.
The related-party loss disallowance rules states that tax laws significantly treat parties involved as though they are the same taxpayer and does not allow recognition of losses on sales to related parties and it may be able to forthrightly deduct the disallowed loss by selling the property to an unrelated third party at a gain and also oonly if the related buyer sells the property at a gain(the related-party buyer sells it for more than she purchased it for).
On the condition that the related-party buyer sells the property for less than her purchase price from the related seller, then disallowed loss expires unused.
They are called (implicit costs)
Hope this helps!
