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Alekssandra [29.7K]
3 years ago
6

self-employed cash basis taxpayer, took out a loan to use in her business. The loan principal is to be repaid on November 30 of

Year 3. Jones prepaid the entire interest of $12,000 on December 1 of Year 1. What amount of interest was deductible on Jones' Year 2 income tax return?
Business
1 answer:
koban [17]3 years ago
3 0

Answer: $6,000

Explanation:

Interest is deductible from Income tax but when interest to be paid is more than 12 months, the interest would need to be evenly spread over the period that they apply to. The total interest is $12,000 but the repayment period is 2 years. This means that the interest would need to be spread out over the 24 months involved at a rate of;

= 12,000/24

= $500

In Year 2 therefore, the relevant amount that can be deducted will be for 12 months;

= 500 * 12

= $6,000

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The current price for a good is ​$25​, and 100 units are demanded at that price. The price elasticity of demand for the good is
mrs_skeptik [129]

Answer:

Consumer surplus increases by $2

Explanation:

The consumer surplus can be defined as the benefit that consumers gain when they pay less for a good that they are willing to pay more for.

a). Determine the final demand as follows;

Price elasticity of demand=% change in price/% change in demand

where;

price elasticity of demand=-1

% change in price={(Final price-initial price)/initial price}×100

Final price=$24

initial price=$25

% change in price=(24-25)/25=(1/25)×100=-4%

% change in demand=x

replacing in the original expression;

-1=-4/x

x=4%

% change in quantity={final quantity-initial quantity/initial quantity}×100

let final quantity=y

4%={(y-100)/100}×100

0.04=(y-100)/100

4=y-100

y=4+100=104

final quantity=104 units

Consumer surplus=(1/2)×change in price×change in quantity

where;

change in price=25-24=1

change in quantity=104-100=4

Consumer surplus=(1/2)×1×4=2

Consumer surplus increases by $2

8 0
2 years ago
Which is NOT an advantage of a mutual fund?
denpristay [2]

Answer:

I think D. If I'm wrong I'm sorry

7 0
3 years ago
Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods:
Sati [7]

Answer: Future Value FV = 169,500

Explanation:

The information given to us are;

Present value PV = 113000

Interest R = 10% = 0.01

number of years T = 5

Future value FV = ?

So using the formula

FV = PV * [1 + (R * T)],

We input our value

FV = 113000 * [ 1 + ( 0.1 * 5) ]

FV = 113000 * [ 1 + 0.5]

FV = 113000 * 1.5

FV = 169500

3 0
3 years ago
At an activity level of 9,300 machine-hours in a month, Falks Corporation’s total variable production engineering cost is $829,5
Neko [114]

Answer: $109.3 per machine hour

Explanation: We can compute total production engineering cost per hour by using following equation :-

=cost\:per\:machine\:hour=\frac{fixed\:cost\:+\:variable\:cost}{total\:machine\:hours}

but first we need to calculate variable cost at 9600 hours :-

=\$829,560\times\frac{9600hr}{9300hr}

       = $856,320

now,

=cost\:per\:machine\:hour=\frac{\$192,960+\$856,320}{9600hr}

      =$109.3 per machine hour

4 0
3 years ago
The Occupational Safety and Health Act does not require employers to abide by the regulations and the safety and health standard
aliya0001 [1]
The answer is False
3 0
2 years ago
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