1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
melamori03 [73]
3 years ago
9

Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in

the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability?
Business
1 answer:
Fiesta28 [93]3 years ago
4 0

Answer:

$260

Explanation:

First, we need to calculate the Taxable income as follow

Taxable income = income unearned + Income earned - Standard deduction Taxable income = $3400 + $300 - $1100

Taxable income = $2600

Now Multiply the tax rate to the taxable income to calculate the tax liability.

Tax Liability = Taxable income x Tax Rate

Tax Liability = Taxable $2,600 x 10% = $260

You might be interested in
Negative items on a credit report that are not correct:
Sav [38]
Answer:
C

Explanation:

Something with a mistake is never best ignored it’s best if they change it and get it corrected.
5 0
3 years ago
Sweet Company borrowed $34,800 on November 1, 2020, by signing a $34,800, 9%, 3-month note. Prepare Sweet’s November 1, 2020, en
nikitadnepr [17]

Answer:

Explanation:

The journal entries are shown below:

On November 1

Cash A/c Dr $34,800

      To Notes payable A/c $34,800

(Being issuance of the note payable is recorded)

On December 31

Interest expense A/c Dr  $522

     To Interest payable A/c  $522

(Being accrued interest adjusted)

The computation is shown below:

Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $34,800 × 9% × (2 months ÷ 12 months)

= $522

The two month is calculated from the November 1 to December 31

On February 1

Interest Expense A/c Dr $261

Interest payable A/c Dr $522

Note Payable A/c Dr $34,800

        To Cash A/c $35583

(Being payment is recorded)

The computation is shown below:

Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $34,800 × 9% × (1 months ÷ 12 months)

= $261

The one month is calculated from the January 1 to February 1

5 0
3 years ago
Which of the following is a way to increase possession utility for a refrigerator?
Ivenika [448]
The correct answer is letter B. Providing a delivery service. Making an increase in possession is ensuring that you have the refrigerator or whatever product that you are getting. The ability to feel the tangible touch of a product gives you the possession.
6 0
2 years ago
Read 2 more answers
uppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A thr
Ivenika [448]

Answer:

WACC for A: 9.05%

WACC for B: 9.50%

WACC for C: 12.20%

WACC for D: 12.65%

Explanation:

WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)

Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%

Thus WACC for a division will be equal:  3% + 50% x ( 4% + beta of each Division x 9%).

Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.

7 0
3 years ago
West Company borrowed $36,000 on September 1, 2016 from the Valley Bank. West agreed to pay interest annually at the rate of 6%
Illusion [34]

Answer:

$720

Explanation:

Given that,

Principal = $36,000

Rate = 6% per year

Note issued by West carried an 18-month term.

Time period: 1st September to December = 4 Months

Interest expense = Principal × Rate × Time period

= 36,000 × 6% × (4 ÷ 12)

= $720

Therefore, the amount of interest expense appearing on West's 2016 income statement would be $720.

5 0
3 years ago
Other questions:
  • You are an automotive engineer working on an application that will automatically parallel park a car. the intelligent technique
    11·1 answer
  • Twenty-five percent of a sample of 200 professional tennis players indicated that their parents did not play tennis. Based on th
    14·1 answer
  • Montana Furniture Mart sold $120,000 of furniture on June 30 and accepted the customer's $120,000 10% 1-year note payable in exc
    14·1 answer
  • Florida Berry Basket harvests early-season strawberries for shipment throughout the eastern United States in March. The strawber
    14·1 answer
  • Discuss the requisite skills a person needs to lead change for a chosen organization. How can the organization’s structure accom
    15·1 answer
  • (3-5 sentences): Suggestions for potential solutions (how to ensure an Economic crisis like this does not happen again):
    8·1 answer
  • Why do you think<br> Relationship skills are<br> important when you own a<br> business?
    9·1 answer
  • The senior vice presidents at Terra Firma Construction are each responsible for a specific function within the organization. One
    13·1 answer
  • During a job interview, Pam Thompson is offered a salary of $32,000. The company gives annual raises of 4 percent. What would be
    10·1 answer
  • situation: flavio's organic construction company built a commercial building of entirely plant-based materials. unfortunately, t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!