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Pani-rosa [81]
3 years ago
5

Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivable with a face value of

$80,000 for $60,000. During the current year, Sally settled the account, receiving $65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.
Business
1 answer:
Simora [160]3 years ago
8 0

Answer:

Shally will not having any amount of bad debt deduction for the present year.

Explanation:

In the present year, Shally will not having any amount of bad debt deduction because she has a gain or income of $5,000. As, last year she has account receivable of $60,000 but this year she settled the account by receiving the $65,000 amount. So, she has received more amount than the basis in the receivable. Therefore, she will not have any bad debt deduction this year.

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What does an income statement show about a bank over a period of time?
Natali5045456 [20]
Reliability because it shows that you are responsible to pay
6 0
3 years ago
Read 2 more answers
Comparing ABC and Plantwide overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The contro
asambeis [7]

Answer:

$432,000 Setting up equipment ⇒ based on setup hours

$1,440,000 Other overhead ⇒ based on oven hours

product                units produced            setup hours          oven hours

Fudge                         8,000                         6,400                    1,600

Cookies                  445,000                         1,600                    8,000

1) Activity rate:

  • a) setup hours = total setup costs / total setup hours = $432,000 / 8,000 hours = $54 per setup hour
  • b) oven hours = total other overhead costs / total oven hours = $1,440,000 / 9,600 hours = $150 per oven hour

2) total overhead assigned to fudge = (6,400 setup hours x $54 per setup hour) + (1,600 oven hours x $150 per oven hour) = $345,600 + $240,000 = $585,600

5 0
3 years ago
​(Yield to​ maturity) The market price is ​$725 for a 16​-year bond ​($1 comma 000 par​ value) that pays 9 percent annual​ inter
wlad13 [49]

Answer:

13.16%

Explanation:

In this question we use the RATE formula i.e shown in the attached spreadsheet

Given that,  

Present value = $725

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 9% ÷ 2 = $45

NPER = 16 years × 2 = 32 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 6.58% × 2 = 13.16%

6 0
3 years ago
A fall in real GDP that results in a decrease in personal income tax receipts is an example of​ ______.
lyudmila [28]

Answer:

c. automatic fiscal policy 

Explanation:

Automatic fiscal policy are policies triggered automatically due to the state of the economy which causes either government spending or taxes to increase or decrease.

For example, if the economy is undergoing a downturn and real GDP falls, the amount paid as taxes would fall.

If the economy is booming and the real GDP rises, the amount paid as taxes would rise.

These are examples of automatic fiscal policies.

Discretionary fiscal policy is when the government purposely increases or reduces either its spending or taxes in response to the economic conditions.

I hope my answer helps you.

5 0
3 years ago
Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.
Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

8 0
2 years ago
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