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4 years ago

Using the information below, calculate gross profit for the period:

Business

1 answer:

patriot [66]4 years ago

8 0

Answer:

a. $749,000.

Explanation:

The computation of the gross profit is shown below:

Gross profit = Sales Revenues for the period - Cost of Goods Sold for the period

= $1,324,000 - $575,000

= $749,000

It is shown in the income statement

We simply deduct the cost of goods sold from the sales revenue so that the gross profit can come

All other information which is given is not relevant. Hence, ignored it

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Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $113,000. She doesn't itemize deductions, so

noname [10]

Solution :

Item Amount

Income $113,000

Personal exemption for one $ 4,050

Standard deduction $ 6,350

Taxable income $102,600

Therefore the taxable income is $102,600.

Now the tax payable on the taxable income is given by :

Marginal tax rate Amount brackets

10% $0 - $ 9,325

15% $ 9,326 - $ 37,950

25% $ 37,951 -$ 91,900

28% $ 91,901 - $ 191,650

Now according to the above taxable slab, the amount of tax on the wages earned by Jenna is :

Tax payable = $= (0.1 \times 9325)+(0.15 \times (37950 - 9325))+(0.25 \times (91900 - 37950))+(0.28 \times (102600-91900))$ $= (0.1 \times 9325)+(0.15 \times 28625)+(0.25 \times 53950)+(0.28 \times 10700)$

= 932.5 + 4293.75 + 13487.50 + 2996

= $ 21,709.75

There is also a long term capital gain of $ 5,200 that is earned by selling the common stock.

Now as per IRS, the capital gain of a long term tax percentage for an individual single filer is in 28% tax slab category is 15%.

Therefore the tax on the capital gain of $ 5,200 is = 0.15 x 5200

= $780

Thus the total tax payable by Jenna is = $ 21,709.75 + $ 780

= $ 22,489.75

5 0

3 years ago

fitness center is planning to invest in specialized exercise equipment. This equipment is highly effective, but the club members

cricket20 [7]

Answer:

b. job and technical training

Explanation:

The job and the technical training is the training which is to be provided by the company or the centers to the workers or the people who want to trained in a particular service or specialized in a service in order to get a better and satisfying job through which they can build their career in a better way

In the given situation, the fitness center send the instructors to the certified training program to learn how to use these machines correctly that reflects the job and technical training

8 0

3 years ago

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Kipish [7]

Answer:

The break-even in monthly dollar sales is closest to $215,000

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $144,050/($230.00 - $75.90) = 935 units

The break-even in monthly dollar sales = 935 x $230.00 = $215,000

5 0

4 years ago

Kaman Company purchased a building and land with a fair market value of $450,000 (building, $350,000 and land, $100,000) on J

balu736 [363]

Answer:

Journals :

Land $350,000 (debit)

Building $100,000 (debit)

Mortgage Payable $450,000 (credit)

Explanation:

The Land and Building is Initially measured at cost of acquisition not the fair market value. The cost of Acquisition in this case is the Present Value of the Mortgage Payable used to obtain the Property.

Step 1

Use the Time Value of Money Techniques to find the Present Value of the Mortgage.

Calculation of Present Value of the Mortgage

N = 20 × 12 = 240

P/YR = 12

PMT = - $3,488.85

I = 7 %

FV = $ 0

PV = ?

Using a Financial Calculator to Input the Values as above, the Present Value of the Mortgage will be $450,000.

Step 2

When Recording, apportion the Land and Building costs using their fair market value.

Land $350,000 (debit)

Building $100,000 (debit)

Mortgage Payable $450,000 (credit)

7 0

3 years ago

Nutrient cycling and purification of water are both examples of

ira [324]

Answer:

Nutrient cycling and purification of water are both examples of Essential Services

5 0

2 years ago