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
Lerok [7]
3 years ago
9

Adams Corporation owns and operates two manufacturing facilities, one in State X and the other in State Y. Due to a temporary de

cline in the corporation’s sales, Adams has rented 20% of its Y facility to an unaffiliated corporation. Adams generated $1,000,000 net rental income and $5,000,000 income from manufacturing. ​ Adams is incorporated in Y. For X and Y purposes, rental income is classified as allocable nonbusiness income. By applying the statutes of each state, Adams determined that its apportionment factors are .65 for X and .35 for Y. ​ Adams’s income attributed to X is:
Business
1 answer:
pogonyaev3 years ago
3 0

Answer:

$3,250,000

Explanation:

First of all, we need to remember that Adams' rent corresponds to 20% of the Y installation, the net rent is $ 1,000,000 and the manufacturing revenue is $ 500,000.

The first step in this calculation is to find the total taxable income. This can be found by calculating: 1000000 + 5000000 = $ 6000000.

The second step is to find the shared revenue, for that it will be necessary to subtract the total taxable income from the allocated revenue. Through the calculation: 6000000-1000000 = $ 5000000.

Now, we have reached the end of the calculation and we must find the value of the revenue distributed to state X. This revenue is equal to 65% of 5000000, which is equal to 3250000.

In summary, $ 3250000 is taxable in State X

You might be interested in
The production budgets are used to prepare which of the following budgets?
romanna [79]

Answer:

b. direct materials purchases, direct labor cost, and factory overhead cost

Explanation:

The production budgets is the budget used for determining the number of units of a product to be manufactured. The production budget captures the estimates of the total production cost and includes elements such as direct materials purchases, direct labor cost, and factory overhead cost.

Operating expenses are expenses incurred during the ordinary course of business outside the manufacturing process.

Sales in unit and dollars are determined by the company's projection and ambition.

The sales estimates determined the production budget considering also the safety stock or closing inventory.

Hence, the right option is b. direct materials purchases, direct labor cost, and factory overhead cost.

5 0
3 years ago
What are the disadvantages of using big macs to measure purchasing power​ parity? ​(check all that apply.​)?
AnnZ [28]
<span>While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.</span>
4 0
3 years ago
Read 2 more answers
You own a portfolio that is 32 percent invested in Stock X, 20 percent invested in Stock Y, and 48 percent invested in Stock Z.
Gnesinka [82]

Answer:

The current portfolio has three stocks X, Y and Z and expected returns are are 6 percent, 19 percent, and 15 percent respectively.

Explanation:

The formula to calculate expected returns of the portfolio is:

Weighted return = Probability * Expected Return

The sum of weighted return is the expected return of the portfolio

Weighted return = (32% x 6% = 1.9%) + (20% x 19% = 3.8%) + (48% x 15% = 7.2%)

Expected return on portfolio = (1.9% + 3.8% + 7.2% = 12.9%)

The expected return of the portfolio is 12.9%

6 0
4 years ago
John worked 43 hours last week. His hourly rate is $9.00. He has the following deductions taken from his pay: Social Security ta
DochEvi [55]

Net pay is calculated by subtracting deductions from Net Pay.

In this case:

Gross Pay is 40 hours X $9/hr (regular pay) PLUS 3 hours X (13.50 -- 1.5 times the normal pay) for overtime

Once you have Gross Pay, you multiply that by the percentages given for the deductions and subtract that total from Gross Pay.

One note, in this case, federal taxes are not withheld from the amount given to 401(k). So to figure the taxes you would:

(Gross Pay - 401(K) contribution) X 10%

Gross Pay - deductions = net pay

4 0
4 years ago
An awareness of the impact of today's actions on tomorrow's costs is a concept that underlies which of the following notions? Se
tester [92]

Answer:

The correct answer is A. Life-cycle costs

Explanation:

In the life cycle of costs, all the costs associated with the production of a good or the provision of a service over a given period of time interfere. For this reason, professionals in charge of this area should consider not only the information directly related to production, but also the costs associated with the maintenance of the product during its useful life.

5 0
3 years ago
Other questions:
  • Technological disruption: a. mostly affects the new entrants. b. is a problem primarily in embryonic industries. c. is typically
    13·1 answer
  • Modern Internet services help businesses provide timely customer service and resolve customer issues immediately. Which Internet
    14·2 answers
  • What might explain the decline in trust during this time? explain the decline in trust both in terms of the "moral trust" and "r
    9·1 answer
  • Westfall Watches has two product​ lines: Luxury watches and Sporty watches. Income statement data for the most recent year​ foll
    13·1 answer
  • A company can expect to receive which of the following benefits when it uses a budgeting​ process? A. The budget helps motivate
    14·1 answer
  • Condensed financial data of Saffordville Company are shown below.
    13·2 answers
  • 225,000 cartons of machine screws per year to support its manufacturing needs over the next seven years, and you've decided to b
    5·1 answer
  • The large percentage of population involved in agriculture in China indicates that most people consume an inadequate number of c
    5·1 answer
  • __________ is when the company keeps its customer happy enough to keep buying products from the company.
    13·1 answer
  • The chubb group, an insurance company, regularly supplies funds for programming on the public television network. its donations
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!