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Travka [436]
3 years ago
8

Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $290 for

the meal and $250 for the theatre tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense?Which of the following expenditures is least likely to be deductible for a construction business?
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer:

The answers are:

  • Holly can deduct $145 from business expenses
  • The $250 paid in theater tickets are not deductible

Explanation:

You can deduct ordinary and necessary expenses from your business income.

Ordinary expenses are expenses commonly paid by other taxpayers in your same industry.

Necessary expenses considers things that you need to pay in order to do business.

Some expenses can only be deducted partially even if they are ordinary and necessary, like having meals with your clients. You can deduct up to 50% of what you paid for the meal ($290 x 50% = $145)

With the introduction of the 2017 Tax Reform Law theater tickets are no longer deductible expenses, the same with most entertainment expenses that used to be deductible.

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Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements
melisa1 [442]

Answer:

Current liability refers to the short term obligations of the firm which need to be settled down within a period of one year or within a normal operating cycle.

(a) $0 would be reported as current liability, as it is not a current liability. It is a contingent liability.

(b) The amount of current liability is $192,900 because it is a liability of a firm to pay bonuses to the employees.

(c) The amount of current liability is as follows:

= $900,000 × 0.08 × (1/12)

= $6,000

Payment of interest on loan is a liability of the firm.

(d) $0 would be indicated in current liability, because provision for doubtful accounts is subtracted from the total accounts receivable to determine the net account receivables.

(e) Proposed dividend is a part of current liability and the amount of dividend to be shown as current liability is as follows:

= Dividend per share × No. of shares outstanding

= $3.50 per share × 41,810

= $146,335

(f) Customer advances is a current liability and the amount of customer advances to be reported in current liability is calculated as follows:

= Customer advances - Amount earned this year

= $193,100 - $57,900

= $135,200

6 0
3 years ago
A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce
melisa1 [442]

Answer:

Net present value = $2063.1922

Explanation:

given data

initially costs = $40,500

cash flows = $34,500

final cash inflow = $12,000

required rate of return = 18.5 percent

solution

The cash flows is  

Year 0 =  $40500

Year 1 = $0

Year 2 = $0

Year 3 = $34500

Year 4 = $34500

Year 5 = $0

Year 6 = $12000

so  Net present value will be express as

Net present value = -Initial cash outflow + Present value of future cash flows ...............1

Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t   ..........................2

put here value we get

Present value = \frac{0}{(1+0.185)^1} + \frac{0}{(1+0.185)^2} + \frac{34500}{(1+0.185)^3} + \frac{34500}{(1+0.185)^4} + \frac{0}{(1+0.185)^5} + \frac{12000}{(1+0.185)^6}    

Present value = $42563.1922    

Net present value= -$40500 + $42563.1922

Net present value = $2063.1922

8 0
3 years ago
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4 0
3 years ago
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An unregistered hedge fund creates a website and uses it to promote itself to investors. Potential investors are invited to ente
ANEK [815]

Answer:

Here the correct statement is B) .

Explanation:

SEC ( securities exchange commission ) allows these types of private placement to be made as per the Regulation D , through the website but it is important to note that these placements can be only made to accredited investors ( these are wealthy or high net worth individuals ) and these investors would have to fill and sign the questionnaire given to them before they can enter in to password protected area.

8 0
3 years ago
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.
muminat

Answer:

The correct answer is A that is late start date.

Explanation:

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The date is grounded on the date when the task is started and also on the late start of the task, late finish dates of the tasks predecessor and the successor as well and also on other constraints.

So, the late start date for the activity is the latest possible time.

7 0
3 years ago
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