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Serggg [28]
3 years ago
6

Ruby Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelat

ed to each other. Cole owns 55% of the stock, and Martin owns the remaining 45%. During 2016, Ruby paid a salary of $200,000 to each shareholder. On December 31, 2016, Ruby accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 1, 2017, compute Ruby Corporation's 2016 deduction for the above amounts.$450,000$400,000$250,000$500,000
Business
1 answer:
telo118 [61]3 years ago
5 0

Answer:

Explanation:

Answer:

$200000 + $200000 +$50000(to COLE's bonus)

= $450000

Ruby corporation uses accrual method.

A corporation that is using accrual method, cannot claim a deduction for an accrual with respect to a related party until the recipient reports that amount as income.

Here, Cole owns more than 50% (55%) so its a related party and it will report bonus on february 1,2017

Therefore, Ruby can not deduct bonus payable to oliver in 2016

Hence total deductible in 2017 would be $450000.

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When early settlers needed to buy farming equipment and supplies, they often would use the milk, eggs, and crops their farms pro
Tasya [4]

Answer:

The correct answer is A)

Explanation:

There is no good or service that is unlimited.

The concept of the Barter system was simply a method of exchanging value for value.

  • It was phased away due to several reasons:
  • It was not a good store of value as many of the goods were perishable
  • it didn't make for good administration: It was too cumbersome and problematic. Imagine having to store three trailers of eggs awaiting a barter exchange

Cheers!

3 0
3 years ago
David saves money from his teaching job to buy a new boat when he retires in 20 years. The boat will cost $30,000. He has $12,00
Aliun [14]

Answer:

Invest at a minimum of 7.5% annual simple interest

Explanation:

Given the goal of purchasing a boat that will cost $30,000 in 20 years, David needs to earn an interest computed below on his investment in the savings account.

Interest required = 30,000 - 12,000

= 18,000

Therefore the minimum rate of interest that will achieve this goal,

= Principal * rate * time = target amount

= 12,000 * R * 20 years = 18,000

= R = 18,000/(12,000*20) = 0.075 = 7.5%.

In addition, David could also continue his saving from his teaching job. This will reduce the minimum investment return required to achieve the goal.

6 0
2 years ago
What is the 2016 repayment limitation for a single taxpayer who has income at a 350% poverty level?
Mademuasel [1]
For taxpayers with household income below 400% of the FPL there is a table of repayment limitation.
For at least 300% but not less than 400% ( for example: 350% ) it is $1,250.
Answer: $1,250.
7 0
3 years ago
On October 1, 2009, the Nintendo Wii's Japanese price dropped from ¥25,000 to ¥20,000. In the three months after the price drop,
kykrilka [37]

Answer:

B) 0.7; inelastic

Explanation:

The computation of the absolute value of the price elasticity of demand is shown below:

Elasticity is

= [(Sales - prior sales) ÷ ( Sales + prior sales) ÷ 2] ÷ [(price - dropped price) ÷ (price - dropped price) ÷ 2

= [(1,040,000 - 890,000) ÷ (1,040,000 + 890,000) ÷ 2] ÷ [(25,000 - 20,000) ÷ (25,000 + 20,000) ÷ 2]

= (150,000 ÷ 965,000) ÷ (5,000 ÷ 22,500)

= 0.15 ÷ 0.22

= 0.7

It is less than one so the demand is inelastic

4 0
3 years ago
Select all that apply
ANTONII [103]

Answer:

Go to your financial institution

Endorse the check and return it to whoever gave it to you

4 0
2 years ago
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