Answer:Christie's 2020 gross income= $172,000
Explanation:
According to IRS, under the tax benefit rule Amount of punitive damages and amount of recovered medical expenses is to be added to gross income, $240,000 for the loss of future income of will not be included.
Therefore we have that
Christie's 2020 gross income=Punitive damages + Recovered medical expenses = $160,000 + $12,000 = $172,000
Answer:
The amount of profit to be added to the cost of each unit = $112.83
Explanation:
<em>Profit is the difference between the selling price per unit and full cost per unit. To determine the the amount of profit to be added , we will divide the total return on invested capital by the number of units to be produced and sold. This is given below as follows:</em>
Target return = ROI (%) × Invested capital
= 19% × 569,512 = 108,207.28
Profit per unit = Total return/Number of units
= $108,207.28
/959 units
= $112.83 per unit
Selling price per unit = Full cost per unit + profit per unit
= 1,124 + 112.83 = 1,237.66 (this is not required anyway)
The amount of profit to be added to the cost of each unit = $112.83
I could be wrong but I feel like A would be a good answer for this
Answer:
Interest Expense $6,446,360
Interest Payable $7,000,000
Explanation:
Interest Expense for the year =
Issued amount * Effective interest rate * 
$644,636,000 * 0.06 * 2/12 = $6,446,360
Interest Payable =
Face Value of the bond * Interest rate *
$600,000,000 * 0.07 * 2/12 = 7,000,000
