Answer: $6,000
Explanation:
When expenses such as this interest expense are for 12 months or more, the deduction will need to be evenly spread over the period that they apply to. As the loan was to be repaid in 24 months, the interest payment deductions should be evenly spread over 24 months.
= 12,000/24
= $500
That means that for Year 2, the relevant deduction will be for the 12 months in it;
= 500 * 12
= $6,000
Answer:
reported as income for all three years is $7,000
Explanation:
given data
cost of the ending inventory = $181,000
market value inventory = $160,000
to find out
Shondee Corporation must add income
solution
we get here Income per year that is
Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year ..............................1
put here value we get
Income per year = 
Income per year = 
Income per year = $7000
so reported as income for all three years is $7,000
They are considered a buyer in the ordinary course of business.
Answer:
The cost basis for the land is equal under both options.
Explanation:
If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.
The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).
Answer:
True
Explanation:
In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers. Market price is set by the forces of demand and supply.
If the seller attempts to set his own price and sets it above the market price, the seller would lose all its customers and make zero sales.
If the seller attempts to set his own price and sets it below the market price, the seller would make losses .
I hope my answer helps you.
