Answer: $30 000 loss is deductible, $20 000 is suspended
Explanation:
Passive losses are only deducted from passive income. deduction is limited to $500 000 for jointly married couples and $250 000 single tax payers.
Passive income is $30 000, therefore $ 30 000 out of the $50 000 loss is deductible, the suspended loss is $20 000
Answer:
The answer is D.
Explanation:
Economy shock is when an expected shock happens to an economy. This shock can be positive or negative.
In the vein, supply shock is an unexpected event that happens to the supply of a product. It can also be positive or negative too.
Positive supply shock increases output while negative supply shock decreases output.
For a temporary negative supply shock and monetary policy makers try to stabilize economic activity in the short run, the following will occur:
1. Aggregate demand curve shifts rightward, meaning demand will rise because supply will automatically reduce. This makes demand to be higher than supply.
2. Inflation rate will be high. Because supply is reduced, price of goods will increase and this is an inflation.
3. Output will be at its potential. When an economy is close to potential output, the price will increase more than the output and aggregate demand will rises.
Answer:
A) Research and Development
Explanation:
The following are the three primary functions that all the organizations perform:
operations
finance
marketing
Answer:
There are issues with Revenue recognition, Accrual basis of accounting and Cash basis of accounting.
Explanation:
The ethical issues are important to handle with care in business. The accountant has used accrual basis accounting technique in order to apply for a loan. The revised financial statements are prepared with accrual concept so that the company is successful in procuring loan. The revenue should be recognized when performance obligation is completed and the required services are rendered. The accrual concept states that the transaction should be recorded when it occurs regardless when the cash is actually received. Daryl has been involved in unethical practice as he has instructed his accountant to prepare revised financial statements to portray that the company's performance is good. It is an intention to deceive bank in order to procure loan.