1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
15

Manny hired his brother’s firm to provide accounting services to his business. During the current year, Manny paid his brother’s

firm $94,000 for services even though other firms were willing to provide the same services for $64,000. How much of this expenditure, if any, is deductible as an ordinary and necessary business expenditure?
Business
1 answer:
Naily [24]3 years ago
3 0

Answer:

$64,000

Explanation:

In order to be deductible, a business expense must be both ordinary and necessary. Being ordinary means that it is a plausible expense for this business, since the expense in question is related to accounting services, it is ordinary. Being necessary means that the expense is the minimum required and is appropriate and helpful to the business. In this case, all of the expense was not required, therefore, only $64,000 (the reasonable market value for the services provided) are deductible.

You might be interested in
Stadford Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm
lesya692 [45]

Answer: Capital structure                            

Explanation: In simple words, capital structure refers to the proportion of different securities that an organisation uses as a combination to fund its operations. In other words, the amount of debt and equity in total capital in hand of the business is termed as capital structure.

Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.

The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.

8 0
3 years ago
Fiona, a regional sales manager, works from her office in State U. Her region includes several states, as indicated in the sales
son4ous [18]

Answer:

Payroll factor State U:

  • commissions $50,000
  • fringe benefit package $15,000

Explanation:

State           Sales Generated Fiona’s         Time Spent There

U                        $3,000,000                             20%

V                        $4,000,000                             50%

X                        $8,000,000                             30%

Sales percentage generated in state U = $3,000,000 / $15,000,000 = 20%

so 20% of the $250,000 commissions should be assigned to state U = $50,000

Time spent in state U = 20% x $75,000 fringe benefits = $15,000 assigned to state U

8 0
3 years ago
Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks
sweet-ann [11.9K]

Answer:

they provide convenient receipts for purchases

Explanation:

Checks payment is a form of paying bills. They were created to allow people to make payments without carrying large amounts of cash hence convenient for purchases.They are also  are safer than other forms of payment as they are traceable; when a transaction occurs and payment is made by checks, banks usually make copies of each check and the owner remains with an underlying copy from the check book.  

6 0
3 years ago
Employee involvement and participation​ (eip) management is a method of management where​ ________.
Fittoniya [83]
It's a method where <span>subordinates share a significant degree of decision-making power with their immediate superiors
One positive benefit of the employee involvement and participation is that companies will prepare more employees to understand the company's operational method and make more potential leaders for the company if it choose to expand in the future</span>
7 0
3 years ago
Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly tr
hoa [83]

Answer: organic

Explanation: Paul Abdul Oil Corporation (PAOC) would be said to have an organic structure. An organic organization structure is one that is decentralized, as such it provides employees the opportunity to engage in business-related decision making; is highly adaptive; and allows for  communications and interactions among employees at all levels. It is therefore more suited to creative businesses, businesses that are facing unstable environments and therefor must adaptive and creative.

8 0
4 years ago
Other questions:
  • Robert invested in stock and received a positive return over a 9-month period. Which of the following types of returns will be g
    11·1 answer
  • In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.
    14·1 answer
  • "925,000" jackson county senior services is a nonprofit organization devoted to providing essential services to seniors who live
    12·1 answer
  • Albright Company produces a variety of products, some in labor-intensive departments and some in heavily automated departments.
    5·1 answer
  • Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, an
    5·1 answer
  • Paris won a lawsuit against railroad, and was given a settlement check. the check somehow came to be in eddy's possession. eddy
    9·1 answer
  • When you buy a U.S. government savings bond, you're doing so under the power given to Congress to
    10·1 answer
  • Welk type preferente aandelen krijgt niet per se een dividend, ook al heef t de onderneming een netto winst ?
    6·1 answer
  • Gregory visited a prospect for the first time this morning, chatted a while with
    10·2 answers
  • 1.1.11 Advise SM on the negative impact of the socio economic issues identified in QUESTION 1.1.10 (6 )​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!