1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andru [333]
3 years ago
7

How much interest, if any, can jaxon deduct in year 0 if his business uses the cash method of accounting for tax purposes?

Business
1 answer:
kaheart [24]3 years ago
6 0
<span>Jaxon can deduct in year 0 if his business uses the cash method of accounting for tax purposes $750 under either cash or accrual method of accounting. Jaxon can only deduct two months of interest ([$4,500/12] Ă— 2) because prepaid interest is not deductible under either method of accounting.</span>
You might be interested in
Estimate the effective annual rate (ear) for a continuously compounded annual nominal rate of 8.00%.
kirill115 [55]
The effective annual rate is 8.33%.
we can calculate the effective nominal annual rate by using this formula;
r = e∧i - 1
e is the constant = 2.718
i = compounded annual nominal rate = 8% = 0.08
r = 2.718∧ (0.08) - 1 
= 1.0833 - 1
= 0.0833 = 0.0833 x 100 = 8.33%
8 0
3 years ago
Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks were manufactured at a total
Elza [17]

Answer:

Using the high-low method of cost estimation, total fixed costs are $47,020  

Explanation:

Cost at highest level of activity = $82,000.00

Cost at Lowest level of activity = $59,000.00

Highest level of activity = 3,300

Lowest Level of activity = 1,130

Variable cost per unit = $(82,000 - 59,000) ÷ (3,300 -1,130)  

Variable cost per unit = $23,000 ÷ 2,170  

Variable cost per unit = $10.60  

Fixed Costs = $82,000 - (3,300 × 10.60)  

Fixed Costs = $47,020  

6 0
3 years ago
Suppose that Portugal and Switzerland both produce fish and olives. Portugal's opportunity cost of producing a crate of olives i
Rashid [163]

Answer:

Portugal has comparative advantage in producing olives.

Switzerland has comparative advantage in producing fish.

Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.

Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.

d. 18 pounds of fish per crate of olives.

Explanation:

Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.

4 0
3 years ago
Family​ Corporation, a corporation controlled by​ Buddy's family, redeems all of​ Buddy's stock. For the redemption to be treate
WINSTONCH [101]

Answer:

C. Buddy cannot be a creditor of the corporation after the redemption.

Explanation:

"A stock redemption that terminates a shareholder’s entire stock ownership in a corporation will qualify for sale or exchange treatment under § 302(b)(3). The attribution rules generally apply in determining whether the shareholder’s stock ownership has been completely terminated. However, the family attribution rules do not apply to a complete termination redemption if the following conditions are met:

   The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).

   The former shareholder files an agreement to notify the IRS of any prohibited interest acquired within the 10-year period and to retain all necessary records pertaining to the redemption during this time period."

Reference: South-Western, Thomson. “Chapter 5.” To Qualify for Sale or Exchange Treatment, a Stock Redemption Generally Must Result in a Substantial Reduction in a Shareholde, 2005,

7 0
3 years ago
How does columbus describe the role and rights of women in native american cultures?
OleMash [197]
<span>Women in native American communities are held at a high regard, are well respected, and have the rights and liberties of men in certain situations. When married, the husband joined the woman's family as the family line was always traced through the women of the family. If a woman decided that she wanted a divorce from her husband, her decision was easily made when she put her husband out of the house to leave.</span>
7 0
3 years ago
Other questions:
  • if consumers to demand in a quantity of 100 at $4 per item and the suppliers Supply 200 of the item at $4 than a surplus is crea
    10·1 answer
  • When disassembling a computer, it is okay to stack circuit boards on top of each other as long as you follow esd protection rule
    5·1 answer
  • Dividing a stock's current price per share by the issuing company's earnings per share results in
    15·2 answers
  • When the marketing student said, "It's really hard for me to get to class on time without a car," she was entering which stage o
    15·1 answer
  • The federal budget starts on October 1 of a calendar year and ends on September 30 of the following calendar year. TRUE FALSE
    12·1 answer
  • The opportunity cost of a decision is measured in terms of
    14·1 answer
  • A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represe
    9·1 answer
  • Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2020. Copper Co
    7·1 answer
  • Which descriptions offer examples of Management workers? Check all that apply.
    14·2 answers
  • Pls help me and thank you
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!