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Levart [38]
3 years ago
7

Donald operates an accounting firm and has an annual summer party for the employees and their families. He believes the party be

nefits his employees. The cost of the food and beverages served at the party is $5,500. Donald also pays a band $500 to play at the party. How much of the total cost can Donald deduct?
Business
2 answers:
user100 [1]3 years ago
7 0

Answer:

$6,000

Explanation:

Total cost includes all that was expended on the party. This includes the cost of the food and the band.

Total cost = $5,500 + $500 = $6,000

I hope my answer helps you

Vsevolod [243]3 years ago
5 0

Answer:

$6000

Explanation:

Accordingly, the costs associated with throwing a party for employees and their families (spouses and significant others) are fully deductible (100%) as long as the party is hosted primarily for the employees. In this case, the party is for the employees as it is seen to benefits them, thus, total cost Donald can deduct equals cost of beverages and food plus cost of band,

That is,

= 5500 + 500

=$6000

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Why are business transctions important
Jet001 [13]

Answer:

Good records allow you to identify all of your assets, expenses, income, and liabilities. This lets you see the strengths and weaknesses of your business, which will enable you to make better financial decisions. Accurate accounts give real-time data for better reporting and forecasting.

HOPE THIS HELPED!!!!!!!!!!!!!XDDDDDDDDDDD

6 0
3 years ago
Sanders, a 62-year-old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses
grin007 [14]

Answer:

$50,000

Explanation:

Recognized gain can be calculated by deducting the exclusion available from the realized gain. To qualify for exclusion from the realized gain Sanders has met all the requirements of exclusion.

NOTE: Requirments for exclusion are given at the end of solution

DATA

Sale proceeds = $500,000

Cost basis = $200,000

exclusion available for single person = $250,000

Gain =?

Calculation

Realized gain on sale of home = Sale proceeds –  Cost basis

Realized gain on sale of home = $500,000 - $200,000

Realized gain on sale of home =  $300,000

Recognized gain = Realized gain - exclusion available

Recognized gain = $300,000 - $250,000

Recognized gain = $50,000

Requirements for exclusion

1. You've owned the home for two of the last five years.  

2. You used the home as your principal residence for two of the last five years.

3. You haven't used the exclusion on another property sale within the last two years.

5 0
3 years ago
Looking for a solution for a common source of irritation and frustration can be a
lana66690 [7]

A good chance to complain

3 0
3 years ago
Read 2 more answers
When a bank account pays compound interest, it pays interest not only on the principal amount that was deposited into the accoun
Ann [662]

Answer:

A = P (1 + r / m)^n m

A = Amount

P = Interest rate

R = interest rate  

N = number of years  

m = number of compounding

Explanation:

7 0
3 years ago
Phipps Company borrowed $16,000 cash on October 1, 2014, and signed a six-month, 6% interest-bearing note payable with interest
Paraphin [41]

Answer:

The accrued interest payable to be reported on December 31, 2014 will be $240 and option a is the correct answer.

Explanation:

The interest rate given on the notes payable is the annual rate. Following the accrual basis of accounting, the revenues and expenses for a period should be matched and recorded in their respective periods. Thus, the interest relating to the period from October to December will be recorded as an expense on 31 December 2014 and debited to interest expense and credited to interest payable as the interest will be paid at maturity.

The interest expense for the 3 month period from October to December is,

Interest expense = 16000 * 0.06 * 3/12  =  $240

The entry will be,

31 Dec 2014 Interest expense    $240 Dr

                          Interest Payable      $240 Cr

8 0
3 years ago
Read 2 more answers
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