Answer:
$13,400
Explanation:
Data provided in the question:
Tax basis of marketable securities = $79,600
Amount for which securities sold to daughter = $60,000
Amount for which daughter sold the securities = $93,000
Now,
Mrs. Beld disallowed loss on the related party sale to her daughter
= Tax basis of marketable securities - Amount for which securities sold to daughter
= $79,600 - $60,000
= $19,600
Realized gain by her daughter = $93,000 - $60,000
= $33,000
Therefore,
The daughter's gain recognized on sale
= Realized gain by her daughter - Mrs. Beld disallowed loss
= $33,000 - $19,600
= $13,400
Answer:
a
Life
Explanation:
Life insurance is a contract where the insurance company undertakes to pay the amount stated in the policy document upon the insured's death. The insured, in turn, pays periodic insurance premiums to keep the contract in force.
Life insurance renders financial protection to the family and the insured upon their death. For an entrepreneur, the insurance company will compensate their family for the loss of income occasioned by their death.
Answer:
It will incur an Opportunity cost of $8,000.
Explanation:
It will incur the opportunity cost of $8000 because the additional unit produces by the company then the additional revenue that is generated will be equal to the amount (25 - 20) x 12,000 = 60,000. Since the additional cost, that incurs for the production of 12000 units is 52000. Therefore the profit earned is $8000.
So if the company does not produce it then it will lose the profit of $8000.
Explanation:
The correct journal entry is as follows
Accounts payable A/c Dr $2,300
To Cash A/c $2,254
To Merchandise Inventory A/c $46
(Being due amount is paid and the remaining balance is credited to the cash account)
It is computed below:
For account payable
= $3,200 - $900
= $2,300
For Merchandise inventory
= ($3,200 - $900) × 2%
= $46
Answer:
The cost of the units transferred out and remaining in ending inventory is $ 107,250 and $ 4,000 respectively.
Explanation:
<u>Calculation of total cost of units transferred out</u>
Units transferred out = 750+ 9500- 500 = 9,750 units
Total cost per unit = material cost per unit + conversion cost
= 7 + 4
= $11
Units transferred out = 11 * 9750 = $ 107,250
<u>Calculation of total cost of closing units</u>
Total Material cost = 7 * (500) = 2,500
Total Coversion Cost = 4 * (500*75%) = 1,500
Total cost = $ 4,000
