Answer:
$60,000
Explanation:
Data provided for calculating the differential revenue is here below:-
Projected revenue A revenue = $180,000
Projected revenue B revenue = $240,000
The computation of differential revenue is shown below:-
Differential revenue = Projected revenue B revenue - Projected revenue A revenue
= $240,000 - $180,000
= $60,000
So, for computing the differential revenue we simply applied the above formula.
Answer:
$9,240 loss recognized
$43,000 basis
Explanation:
Tax basis of share purchase is the cost of share together with any tax related to this purchase.
Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share = $49,240 - $40,000 = $9,240
His tax basis in purchase of 1,600 shares on Mar 2 is $43,000, the total cost he paid to acquire 1,600 shares
Answer: d. $450,000
Explanation:
In absorption costing, the fixed costs are absorbed by the products so that the cost of goods sold is inclusive of fixed costs.
First find the fixed overhead for the ending inventory:
= Fixed overhead per unit * Number of units in ending inventory
= 240,000 / 30,000 * 10,000
= $80,000
This is the fixed overhead that is deferred to the next year.
Income under absorption costing = Income under variable costing + Fixed overhead deferred:
= 370,000 + 80,000
= $450,000
Answer:
Profit is the amount of money gained by someone or a business after the total costs are taken away from the revenue
profit = total revenue - total costs
it is the surplus left from revenue after taking away all costs
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