Answer:
$150,000
Explanation:
Amount paid after project completion was =$50,000
The sales revenue for the new company = $550,000
Total deductions =$(250,000+70,000+30,000)=$350,000
Economic profit is the difference between the earned revenue from sell of outputs and cost of all inputs used and any opportunity costs.
In this case, opportunity cost will be the amount received by the web designer after the quit of the project.
Economic profit = $550,000 - $350,000-$50,000 = $150,000
Answer:
Section 121 exclusion
Explanation:
In simple words, IRC section 121 requires a person to deduct up to $250,000 ($500,000 for dual filers) of profit from the selling (or exchange) of land that was purchased and utilized as a primary home for at minimum two of that five years preceding the sale. Thus, from the above explanation we can conclude that the correct answer is section 121 exclusion.
Answer:
b. excludable and rival in consumption
Explanation:
For categorizing the goods as private or public, the two terms we need to understand i.e. rivalry and excludability
The rivalry refers only one person could consume it no other has the right to consume the same thing
While on the other hand, the excludable arise when you stop someone from using a particular thing
So here in the given case, the option b is most appropriate as it is fit to the scenario
Answer:
Debit : Cash $2,400
Debit : Account Receivables $3,300
Credit : Revenue $5,700
Explanation:
Revenue is recognized when a firm transfers the control of goods or services not when paid.
So this journal must both recognize the Assets in Cash and Assets in Trade Receivables since control for the services has already been transferred.
The journal entry at the end of the month to record this transaction would be :
Debit : Cash $2,400
Debit : Account Receivables $3,300
Credit : Revenue $5,700
