Answer:
D) $150,000
Explanation:
Insurance proceeds that are not reinvested in replacing damaged property are taxed. Apparently Prime corporation didn't reinvest into replacing the property, so this transaction should be taxed as a property sale. Prime received $400,000 for the building with a $350,000 basis which results in a net gain = $50,000.
The other $100,000 were given as replacement income and therefore should be taxed as such.
So the total taxable amount = $50,000 + $100,000 = $150,000
Answer:
wax
Explanation:
Raw materials are the components or ingredients used to manufacture finished goods. They are the unprocessed materials that go through the production process or refining to give a consumable product.
Wax is the main raw material in the production of candles. A company involved in making candles need a source of wax to stay in business.
Answer:
$273.96
Explanation:
The balance will be the future value of $209, at 7% for four years.
The formula for calculating the future value is as below.
FV = PV × (1+r)^n
Where PV is the present value, $209
r= is the interest rate 7% or 0.07
n= 4 years
FV = $209 x ( 1+ 0.07) ^4
Fv =$209 x 1. 310
Fv = 273.9563
Fv= 273.96
Answer:
Budgeted overhead= $283,400
Explanation:
Giving the following information:
Production:
October= 192,000
variable overhead is applied at a rate of $0.70 per unit of production.
Fixed overhead equals $149,000 per month.
To calculate the budgeted overhead, we need to determine the total variable overhead for the month:
Budgeted overhead= fixed overhead + total variable overhead
Budgeted overhead= 149,000 + 0.7*192,000
Budgeted overhead= $283,400
