Answer:
The amount of interest which can be deducted in one year is limited to the net investment income of a taxpayer for that year.
Explanation:
This amount can not be exceeded. Investment income according to the IRS includes:... It does not include eligible dividends or net capital gains other than those that you want to include.
Limitations on investment interest Not all interest that you pay on investment loans are allowed to be deducted. For particular, the IRS forbids registration of certain forms of investment value, including:
1. Home mortgage interest eligible.
2. Value to raise tax-exempt revenue, as if the municipal tax-free bond is to be bought on a margin.
3. Option straddles, which are not available to most investors as an advanced investment strategy.
4.Interest in any passive operation when measuring profit or loss
Answer:
PV= $1,311.17
Explanation:
Giving the following information:
Future Value (FV)= $5,000
Number of periods (n)= 25 years
Interest rate (i)= 5.5% compounded annually
T<u>o calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV= FV / (1+i)^n
PV= 5,000 / 1.055^25
PV= $1,311.17
Answer:
Etcetera Clothing collected $10,780
Explanation:
Etcetera Clothing sells merchandise inventory on terms of 2/10, n/30, which means that it will give a cash discount to a customer of 2% when the payment is made within 10 days and the whole settlement of account must be made in 30 days.
If the customer paid for the merchandise 5 days after receiving the invoice, the customer was granted the cash discount since the payment is still within the discount period.
The amount of cash discount is $11,000 × 2% = $220
Payment made to Etcetera Clothing will be $11,000 - $220 = $10,780
Answer:
It eliminated the need for fixed costs.
Explanation:
Answer:
1) 24.4%
2) 67.4%
Explanation:
The basis on which overheads are to be applied is considered under 'denominator' value.
1)
Numerator = Estimated factory $122,000
Denominator = Direct Labor $500,000
Overhead Rate = 122,000 / 500,000 = 0.244 ==> 24.4%
2)
Numerator = Estimated factory overhead $122,000
Denominator = Direct Material $181,000
Overhead Rate = 122,000 / 181,000 = 0.674 ==> 67.4%
