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Salsk061 [2.6K]
3 years ago
5

Lesa drives her car approximately 18,000 miles per year. During the most recent year, she drove 7,000 miles commuting to and fro

m work, 4,500 miles for business-related conferences and client visits, and 6,500 miles for personal trips. How many miles are considered business miles and can be used to determine the tax deduction for transportation expenses?
Business
1 answer:
White raven [17]3 years ago
3 0

Answer:

The answer is: 4,500 miles

Explanation:

Lesa can only deduct 4,500 miles as transportation expenses form her taxable income. She could include any other related expenses like parking fees, tolls, etc., that she spent during her business related trips.

The 7,000 miles she drove to and form work are not considered business expenses, since going to work is not an actual part of working. It's like an employee trying to get paid for the time he or she spends in a bus going to work.

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An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C
Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the  Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate =  $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0
3 years ago
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 bil
KiRa [710]

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.

<u>Explanation</u>:

Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:

- failing to integrate acquisitions

- unable to understand how the acquired organization’s assets would fit with their own lines of business

- paying high premium for the target's common stock

- not acting in best interest of shareholders

The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.

8 0
4 years ago
Omega, Inc. is considering international expansion and wants to know if it is likely to command a high price for its fitness pro
baherus [9]

<u>Answer:</u> Option C

<u>Explanation:</u>

International expansion is a strategy where the organizations enter into global markets for the benefit of making quick profits and business development in new segments. Omega Inc can fix higher prices when their products provide a greater value to the customers in that foreign market.

In the other given situations the company cannot fix a higher price for the fitness products in foreign market. Other situations given are easily available products, low expected sales volume and low price of the competitors.

7 0
3 years ago
MC Qu. 128 Leeks Company's product has... Leeks Company's product has a contribution margin per unit of $13.57 and a contributio
Ray Of Light [21]

Answer:

The price of the product is $59

Explanation:

Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below

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23% = $13.57 / Selling price per unit

Selling price per unit = $13.57 / 23% = $59

3 0
3 years ago
If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings in
Elina [12.6K]

There are  interests rates in goods sold. If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings investments is a false statement.

<h3>Does a higher rate of money supply lower interest rates?</h3>

Note that larger money supply often lowers market interest rates, thereby making it much lower expensive for consumers to borrow.

Investment one should choose today if you believe interest rates will go up is Short-term savings instruments. This is because by investing money in short-term savings instruments, one's money can be available to invest in any kind of  higher interest instrument in the future.

Learn more about  interests rates from

brainly.com/question/25793394

7 0
2 years ago
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