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Evgesh-ka [11]
3 years ago
7

During the month of March 2017, Weimar World, a tax-preparation service, had the following transactions. * Billed $496,000 in re

venues on credit * Received $164,000 from customers' accounts receivable * Incurred expenses of $194,000 but only paid $87,700 cash for these expenses * Prepaid $22,220 for computer services to be used next month What was the company's accrual basis net income for the month?
Select one:
A. $302,000
B. $264,080
C. $ 41,860
D. $408,300
E. None of the above
Business
1 answer:
Vadim26 [7]3 years ago
8 0

Answer:

A. $302,000

Explanation:

The computation of the net income under accrual basis accounting is shown below:

= Billed in revenues on credit - incurred expenses

= $496,000 - $194,000

= $302,000

The prepaid expenses and the received amount would not be considered in the computation part. Hence, ignored it

Only revenues on credit and incurred expenses are considered in the computation part. No other item values would be  taken.

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Marcie and her husband, Franklin, each own 50 shares of Chestnut, Inc. Sally, Marcie's old high school friend, owns the remainin
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Answer:

$38,000 Dividend

Explanation:

Based on the information given the tax treatment of the redemption to Marcie will be $38,000 dividend reason been that her husband shares was been attributed to her, and Since she owns 60 shares her remaining 10 shares including that of her husband 50 shares of Chestnut's will be 110 shares calculated as 150 shares - 40 shares outstanding.

Therefore when we look at this 60 shares/110 shares is greater than 50% which means that Marcie fails the 50% test which makes the redemption to be treated as a dividend.

Hence, the tax treatment of the basis of the shares redeemed will be $38,000 Dividend.

8 0
3 years ago
One autumn, the weather is perfect for growing pumpkins, and the pumpkin crop is much larger than usual. Meanwhile, when hallowe
valentina_108 [34]

Answer: Price of pumpkins will fall compared to last year.

Explanation: Favorable weather leading to a larger crop than usual means that there is more supply of pumpkins this year than before.  Shifting the supply curve down to the right. At the same time, when people switch away from jack-o'-lanterns towards buying more costumes, it leads to a decline in the demand for pumpkins shifting the demand curve to the left.

The net result will be a decline in the demand for fall in the price of pumpkin. However, the effect on the quantity cannot be determined as it depends on the magnitude of shift in the two curves.

5 0
3 years ago
A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a cus
il63 [147K]

Answer:

The correct answer is A. Differentiation.

Explanation:

They are marketing strategies used by companies to highlight a product about similar offers in the market.

This strategy seeks to provide the company with a competitive advantage, it is important that this strategy is directed directly to a specific segment of the market and delivers a concrete and positive message about the different product to other products in a market.

This strategy offers a small business survival opportunity when they compete in a market dominated by large companies.

It is important that the company is clear about the principle of this type of strategy, since achieving being different is not the objective, the particularity is being relevant and achieving consumer preference, that is, it is not enough to be different from the others, that difference must be followed by a benefit that the client supposes important and effective.

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Anne, a beautician by profession, owns a salon in the small town of franklin, new jersey. every weekend, she makes it a point to
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Anne is conducting market research by doing a competitive analysis.

Hope this helps! :)
6 0
3 years ago
The maturity of most bank loans is short term. Bank loans to businesses are frequently made as 90-day notes which are often roll
maks197457 [2]

Answer:

A. True

Explanation:

Bank loans are generally short term for meeting the working capital needs, that depends upon the operating cycle of a company.

Usually that keeps on rotating and extending, as the banks keep on earning interest and the funds are usually not needed, this results in the constant support for business.

Further this facility is only provided to the clients who are performing good and that the clients are viable.

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