Rebecca began taking

Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During 2019 s

daser333 [38]

Answer:

Income = $10,000
Adjusted Gross Income (AGI) Deduction = $0
Claim $10,000 as itemized deduction due to expenses

Explanation:

The activity being a hubby does not exempt it from tax so the $10,000 will be included as income for tax purposes and there will be no deduction for this from the AGI.

She can however, claim her expenses as itemized deductions. There is no tax on interest payment so expenses deducted are:

= 4,000 + 6,500 - 500

= $10,000

7 0

3 years ago

BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department

vagabundo [1.1K]

Answer:

Direct material cost of units transferred out = $42,596

Cost of ending work in process inventory = $8,174

Explanation:

This can be done using the following 3 steps:

Step 1: Calculation of equivalent unit of production (EUP) of materials

Note: See the attached excel file for the calculation of equivalent unit of production (EUP) of materials.

From the attached excel file, we have:

Physical unit = 24,680

EUP-material = 21,564

Step 2: Calculation of cost per EUP of materials

Cost per EUP of materials = Direct materials added during the month / EUP-Materials = $49,900 / 21,564 = $2.13

Step 3: Assignment of direct materials cost to the units transferred out amd the ending WIP

Cost of materials added to complete the beginning WIP = 924 * $2.13 = $1,967

Cost of units started and transferred out = 16,800 * $2.13 = $35,760

Direct material cost of units transferred out = Direct material cost of beginning WIP + Cost of materials added to complete the beginning WIP + Cost of units started and transferred out = $4,870 + $1,967 + $35,760 = $42,596

Cost of ending work in process inventory = 3,840 * $2.13 = $8,174

Download xlsx

6 0

3 years ago

Computing Present Values of Single Amounts and Annuities Refer to Tables 1 and 2 in Appendix A near the end of the book to compu

Klio2033 [76]

I don’t know the answer

7 0

3 years ago

emiannual coupon bonds with the same risk (Aaa) and maturity (20 years) as your company's bonds have a nominal (not EAR) yield t

garri49 [273]

Answer:

quarterly coupon payment = $22.25

Explanation:

effective annual interest rate of current bonds = (1 + 9%/2)² - 1 = 9.2025%

if the new bonds will have quarterly payments, then the nominal interest rate should be:

1.092025 = (1 + r/4)⁴

⁴√1.092025 = ⁴√(1 + r/4)⁴

1.02225 = 1 + r/4

0.02225 = r/4

r = 8.9% annual

quarterly rate = 2.225%

quarterly coupon payment = $22.25

4 0

3 years ago

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. Th

iris [78.8K]

Answer:

Product Net monetary advantage

X (800)

Y 1,000

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all costs incurred up to the split-off point are irrelevant to the decision to process further .

Product X

$

Additional sales revenue from further processing

( 47,000-25,400) 21600

Further processing cost (22,400)

Net monetary advantage (800)

Product Y

$

Additional sales revenue from further processing

( 54,700-37,000) 17,700

Further processing cost (16,700)

Net monetary advantage 1,000

Product Net monetary advantage

X (800)

Y 1,000

7 0

3 years ago