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Jlenok [28]
3 years ago
15

Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp

enses, and began business in March, Year 1. What is the maximum amount Crimson may deduct for organizational expenditures on its Year 1 corporate tax return?
Business
1 answer:
Lelechka [254]3 years ago
3 0

Answer:

Total deductible organization expenses  is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

= $ 6,611

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Myles Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2014 Dec. 31, 2013 Raw materials in
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Answer:

Myles Manufacturing Company

Cost of Goods Sold = $2,700,000

Explanation:

Cost of Goods Sold:

Beginning Inventory of Raw Materials = $820,000

Purchase of Materials = $900,000

Less closing inventory of Raw Materials = $620,000

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Opening WIP = $220,000

Cost of Raw Materials used in production = $1,100,000

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Less Closing WIP = $300,000

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Opening Finished Goods = $100,000

Cost of Goods Manufactured = $2,980,000

Less closing Finished Goods = $380,000

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3 0
3 years ago
An analyst is considering an investment in Treetops Inc. and has gathered the following information. What is the expected return
lesantik [10]

Answer:

Expected Return =

Recession  = ( 20/100)* 20%   =  4%

Steady      =   (40/100)*10%      =  4%

Boom       =   ( 40/100)  *  35%   =<u>  14%</u>

         Expected Return =         <u>   22%</u>

there is no answer in the option. The correct answer is 22%.

Explanation:

Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.

8 0
3 years ago
A large group of fans are upset about the high price of tickets to many events. As a result of their lobbying efforts, a new law
Ierofanga [76]

Answer:

The correct answer is: shortage; elastic; same number of.

Explanation:

Suppose the price ceiling is fixed at $50. The market equilibrium price is more than $50. This means that the price ceiling is binding.

Fixing the price ceiling below the equilibrium price level will create a shortage of tickets. There is an inverse relationship between price and quantity demanded. So the quantity demanded will be higher at a lower price. The quantity supplied on the other hand will be lower. This is because the quantity supplied is positively related to the price.

So at the ceiling price the quantity demanded will be higher than the quantity supplied. This shortage will be more if the demand is elastic. An elastic demand implies that a decrease in price will cause the quantity demanded to increase to a greater extent.

5 0
3 years ago
If unnecessary government borrowing (deficit spending) and high tariffs are both harmful to the economy, why do governments in d
Nastasia [14]
The correct answer for the question that is being presented above is this one: "D. Most politicians do not care about helping the people become more prosperous."

Here are the following choices:
<span>A. Politicians will follow bad economic policies in order to attract votes.
B. Most politicians have a very poor understanding of the principles of economics.
C. Politicians do not care about what is good for their citizens.
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5 0
3 years ago
On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month
Mice21 [21]

Answer:

The question is not complete:

On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))

The sum of $650,001.38  would be received in six months

Explanation:

In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:

$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91

yen received =$650,000*104.91/1

                       = ¥ 68,191,500.00  

The six month forward contract outcome is as follows:

($0.0095320/¥1)

each Yen was exchanged $0.0095320

dollars received= ¥ 68,191,500.00 *0.0095320/1

                          =$650,001.38  

3 0
3 years ago
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