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Vesna [10]
3 years ago
8

Tim, a single taxpayer, operates a business as a single-member LLC. In 2019, his LLC reports business income of $225,000 and bus

iness deductions of $580,000, resulting in a loss of $355,000.
a. What are the implications of this business loss?
b. Can this business loss be used to offset other income that Tim reports? If so, how much? If not, what happens to the loss?
Business
1 answer:
Alisiya [41]3 years ago
5 0

Answer:

Excess loss business is a situation where deduction exceeds the total income, like given in the above situation.

As per IRS for 2019,

New limitation is $150,000 of the disallowed business loss would be carried forward to 2019 as an additional NOL .

Therefore,

1) Tim has excess business loss of $ 205000

($580000 - $ 225000- $150000)

2) Tim may use $150000 of the $355000.

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It costs Crane Company $28 of variable costs and $15 of allocated fixed costs to produce an industrial trash can that sells for
Taya2010 [7]

Answer:

Effect on income= $6,000 increase

Explanation:

Giving the following information:

Unitary variable cost= $28

Selling price= $30

Number of units= 3,000

<u>Because it is a special offer and there is unused capacity, we will not take into account the allocated fixed costs.</u>

Effect on income= 3,000*(30 - 28)

Effect on income= $6,000 increase

8 0
3 years ago
During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncoll
Lunna [17]

Answer:

$593,000

Explanation:

Net income before debt in second year:

= Reported net income + wrote off accounts as uncollectible

= 600,000 + 34,000  

= $634,000

Net income = Net income before debt in second year - Bad debts expense

                   = $634,000  - (1% of 4,100,000)

                   = $634,000  - 41,000

                   = $593,000

 

4 0
3 years ago
Assume that the accounts receivable (in millions) were $1,308 at the beginning of
IRISSAK [1]

Answer:

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6 0
3 years ago
Microeconomics includes the study of Group of answer choices changes in the price of commercial real estate. expansions and cont
Ksivusya [100]

Answer: Microeconomics is the study of changes in price in the price of commercial real estate.

Explanation:

Microeconomics is the study of the behavior of individuals, households and firms in making decisions and the allocation of resources. Microeconomics deals with individual issues and applies to the markets of products. In microeconomics, the economy is studied at an individual level. Examples of microeconomics are demand, price level, supply and competition.

Apart from Microeconomics is the study of changes in price in the price of commercial real estate(option A), every other options deals with the economy as a whole. The other options are macroeconomic issues and not microeconomic issues.

5 0
3 years ago
The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambu
babunello [35]

Answer:

Explanation:

A) using 2-year moving average :

Year 6 : (3800 + 3700) = 7500 / 2 = 3750

2) Mean absolute deviation based on the forecast above :

(3000 + 4000) = 7000/2 = 3500

(4000 + 3400) = 7400/2 = 3700

(3400 + 3800) = 7200/2 = 3600

3000

4000

3400 __3500__100

3800__3700__100

3700__3600__100

Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100

C) weight of 0.4 and 0.6

(0.4*3000 + 0.6*4000) = 3600

(0.4*4000 + 0.6*3400) = 3640

(0.4*3400 + 0.6*3800) = 3640

3000

4000

3400 __3600__200

3800__3640__160

3700__3640__60

(200 + 160 + 60) = 420 / 3 = 140

5 0
4 years ago
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