Answer: $2500
Explanation:
The amount of investment interest expense deduction for the year will be calculated thus:
The value of interest expense will be:
= Interest income + Non qualifying dividend
= $1000 + $1500
= $2500
It should be noted that the investment interest expenses will be $2500 due to the fact that thus is lesser than Fortes' expenses for the year which is $3,000 in investment interest expense.
Answer:
c. Revenue is increased.
Explanation:
Cash Received in advance from customer for future services will be a liability it will increase the assets as increase in cash, increase the liability as unearned revenue and increase in cash flow from operating activities as cash received from as customer. So c. Revenue is increased. does not correctly reflect the transaction.
Answer:
April, 1
DR Prepaid Insurance .............................................................$23,000
CR Cash ........................................................................................................$23,000
Dec, 31
DR Insurance Expense.............................................................$8,625
CR Prepaid Insurance................................................................................$8,625
Working
Insurance expense;
April to December = 9 months
= 23,000 * 9/24 months
= $8,625
Nov, 1
DR Cash ......................................................................................$16,800
CR Deferred rent revenue .....................................................................$16,800
Dec, 31
DR Deferred rent revenue ...................................................$5,600
CR Rent Revenue......................................................................................$5,600
Working
= 16,800 * 2/6 months
= $5,600
Yeah the answer is D) $80 bc it will take about 23 months, while the rest takes more.