Answer:
Effect on income= $9,000 increase
Explanation:
Giving the following information:
Fashion:
Contribution margin= 20,000
Fixed expenses= 40,000
Operating income (loss)= (20,000)
$29,000 of fixed costs will be eliminated by discontinuing the Fashion line.
<u>We need to determine the effect on income if the Fashion line is discontinued.</u>
Effect on income= avoidable fixed costs + operating income
Effect on income= 29,000 - 20,000= $9,000 increase
Answer:
a.
DR Cash .....................................................................$9,003.31
DR Cash Over and Short.........................................$66.99
CR Sales revenue........................................................................$9,070.30
Working
Cash = 9,070.30 - 66.99 = $9,003.31
b.
DR Cash .....................................................................$9,107.67
CR Sales revenue........................................................................$9,070.30
CR Cash Over and Short.............................................................$37.37
Working
Cash = 9,070.30 + 37.37 = $9,107.67
Answer:
$24,000
Explanation:
The computation of the adjusted basis in the land after the exchange is shown below:
= Adjusted basis at the time of exchange + additional amount given
= $20,000 + $4,000
= $24,000
We simply added the Adjusted basis at the time of exchange and the additional amount so that the accurate value can come.
And the other information which is given in the question is not relevant. Hence, ignored it
B. is spread among many people who may or may not even know each other<span>
</span><span>Hope this helps!</span>