Answer:
1 Depreciation expeense (Debit) $4,200
Accumulated depreciation (Credit) $4,200
2.Bad Debt expense (Dr.) $6,900
Accounts Receivables (Cr.) $6,900
3. Accrued Interest Expense (Dr.) $1,200
Notes Payable (Cr.) $1,200
4. Accrued Income Tax (Dr.) $14,200
Cash (Cr.) $14,200
5. Cash (Dr.) $4,200
Redemption of Gift Cards (Cr.) $4,200
Explanation:
Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.
Answer:
Would a person earning $15,000 per year and a person earning $300,000 per year be in the same federal tax bracket? ... No, because federal income tax is progressive. If single in 2014, the $15,000 would be in the 15% marginal bracket, the $300,000 would be in the 33% marginal bracket. When would you have to pay a gift tax?
Explanation:
If none of the children are willing to pay than the bank will take the house back if the father had a loan on it.
Answer:
80%
Explanation:
For computing the return on investment first we have to need the following calculations
New contribution margin = Old contribution margin + increase in contribution margin
= $260,000 + $30,000
= $290,000
And,
Net Income = Contribution margin - Total direct fixed costs
= $290,000 - $90,000
= $200,000
ROI = Net income ÷ average operating assets
= $200,000 ÷ $250,000
= 80%