Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
r
Answer:
The appropriate journal entry to record the March purchases of shares under the employee share purchase plan are as follows:
Debit: Cash ($12 × 85%) × $50,000 = $510,000
Debit: Compensation Expense ($12 × 8%) × $50,000 = $90,000
Credit: Common Stock = $50,000
Paid in Capital – Excess of Par ($50,000 × $11) = $550,000
The answer is A. Providing legal advice
Answer:
Revenue that has been earned by the end of December is $ 140,000
Explanation:
When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.
The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.
<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>
Revenue to be recognised = $240,000 × 7/12
= $ 140,000
Answer:
$669,950
Explanation:
Computation of taxable income
Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600
Book gain on equipment sale$(23,000)
(53,000-27,400)
Tax gain on equipment sale38,000 15,000
(23,000-38,000=15,000)
Nondeductible loss on sale to related party 23,550
(75,000-51,450)
Taxable income$669,950
(605,800+25,600+15,000+23,550)
Therefore the taxable income will be $669,950
