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Nitella [24]
3 years ago
14

Perle, a dentist, billed Wood $600 for dental services. Wood paid Perle $200 cash and built a bookcase for Perle’s office in ful

l settlement of the bill. Wood sells comparable bookcases for $350. What amount should Perle include in taxable income as a result of this transaction?
Business
1 answer:
Naddika [18.5K]3 years ago
7 0

Answer:$600

Explanation:

The full amount of$600 will be credited to Perle as his service income on completion of the dental services and debited to wood account as a debtor.

The $200 will reduce the debt to $400 , the $400 which will be recorded through a journal by debiting bookcase and crediting Wood.

Narration. Recognition of bookcase built as debt payment.

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6 0
3 years ago
Why is this zero based budget the best method of budgeting?
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Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic
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14.58%

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Return on Bond is the actual rate that is received by an investor on investment in bond.  

As per given data

After Tax return = 10.50%

Tax Rate = 28%

Deduction of 28% withholding tax will be made on the return of the bond in that country where investment is made and investor will have return net of tax.

We can calculate the after tax return on the bond as follow

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Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard variable overhead cos
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Answer:

The variable factory overhead controllable variance is $2,250 favorable.

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