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Eva8 [605]
2 years ago
8

Peyton was selected the most valuable player in the Super Bowl. In recognition of this, he was awarded an automobile with a valu

e of $60,000. Peyton did not need the automobile, so he asked that the title be put in his parents' names. Peyton is required to include $ in gross income. b. Jacob was awarded the Nobel Peace Prize. When he was presented the check for $1,400,000, Jacob said, "I do not need the money. Give it to the United Nations to use toward the goal of world peace." Jacob is required to include $ of the prizes received in his gross income. c. Linda won the Craig County Fair beauty pageant. She received a $10,000 scholarship that paid her $6,000 for tuition and $4,000 for meals and housing for the academic year. Linda is required to include $ of the scholarship in her gross income.
Business
1 answer:
abruzzese [7]2 years ago
5 0

Answer:

1. Python is required to include $60,000 in his gross income.

2. Jacob is not required to include the $1,400,00 in his gross income.

3. Linda is required to include $4,000 in her gross income.

Explanation:

Each of the questions is explained as follows:

1. Python

Being selected as the most valuable player in the Super Bowl is not a kind of achievement that is qualified to be excluded from gross income. Python's achievement would have qualified to be excluded from the gross income if he had donated it to a not for profit organization or qualified governmental agency, but he did not satisfy this condition.

Therefore, the total value of the automobile which $60,000 is required to be included in the gross income by Python.

2. Jacob

If the United Nations is a not-for-profit organization or qualified governmental agency, Jacob will not include the $1,400,000 Nobel Peace Prize he got and donated to the United Nations in his gross income.

If we therefore assumed that the United Nations is a not-for-profit organization or qualified governmental agency, Jacob is not required to include $1,400,000 Nobel Peace Prize amount donated to the United Nations in his gross income.

3. Linda

Winning Craig County Fair beauty pageant is not in itself a qualified achievement like scientific and artistic achievements. But the award of $6,000 tuition to Linda is a qualified scholarship that she can exclude from his gross income, while the award of $4,000 he got for meals and housing is not qualified to be excluded.

Therefore, Linda is required to include $4,000 in her gross income.

All the best.

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On January 15, the end of the first pay period of the year, North Company’s employees earned $26,000 of sales salaries. Withhold
Contact [7]

Answer: Please see the  explanation column

Explanation:

Journal entry to record North Company’s salaries expense and related liabilities.

Date            Particulars                        Debit                 Credit

Jan, 15 Sales salaries expense      $26,000

     To  FICA Social Security taxes

payable at 6.2%                                                                $1,612

     To FICA Medicare taxes

payable at 1.45%                                                                 $377

  To federal income taxes payable                                 $2,000

To employee medical insurance payable                           $429

To  employee union dues payable                                      $180

 Sales Salaries Payable                                                      $21.402

Working :

FICA Social Security taxes = 6.2% x $26,000 = $1,612

FICA Medicare taxes = 1.45% x 26,000 = $377

Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable  +employee union dues payable  ) = 26,000 - (1612+377+2000+429+180)=$21,402.

6 0
2 years ago
Identify which of the following statements is correct as to why accounting is important. Multiple choice question. We live in an
ziro4ka [17]

Answer:

Accounting information identifies, records and communicates information about a business.

Explanation:

The accounting information identified the business records and communicate the business information to the insiders and outsiders also it does not have any effect on everyone except the stakeholders. In addition to this, it is not depend upon the valuation made for the stock market

So as per the given situation, the above statement should be correct

3 0
2 years ago
Sage Hill Inc. Issues $254,000, 10-year, 10% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1
Mamont248 [21]

To record final annual interest and bond repayment:

2017

Mar 1

Bonds interest expense       $25,400

Bonds payable                      $254,000

          Cash                                                  $279,000

On March 1, 1997, the date of issuance, the entry is:

1997

Mar 1

Cash                                        $254,000

          Bonds payable                                  $254,000

On each March 1 for 10 years, beginning March 1, 1997 (ending March 1, 2017), the entry would be (Remember, calculate interest as Principal x Interest Rate x Time)

Mar 1

Bond Interest Expense ($100,000 x 12% x 1)          $25,400

          Cash                                                                                  $25,400


8 0
3 years ago
Cyclical unemployment is BEST described as unemployment arising from
Ira Lisetskai [31]

Answer:

Contraction cycle or Recession

Explanation:

The cyclical unemployment is due to the cycles of economy ( expantion:Grow and contraction: recession) Under these circumstances unemployment is considered normal as the economy cannot sustain itself always in an expansion cycle.

3 0
3 years ago
A company is deciding if it should design an advertising system for use on Twitter©. The first option is to skip out on designin
Vladimir79 [104]

Answer:

SYSTEM A

Explanation:

Given the following :

First option :

Skip design = No net gain or loss

System A:

Additional sales of $50,000 under good condition

Additional sales of $10,000 under bad condition

System B:

Increase sale by $20,000 under both good and bad condition

Cost of system development = $25,000

Good condition are twice as likely to occur as bad condition

Hence, we have : good, good, bad

Probability of good = 2/3 = 0.667

Probability of bad = 1/3 = 0.333

We can calculate the Expected monetary Value of the three options :

First option:

Skip design : Expected monetary Value = $0

Second option (SYSTEM A) :

Profit from good condition :

Additional sales - system cost = ($50,000 - $25,000) =$25, 000

Loss from bad condition :

($25,000 - $10,000) = - $15,000

Expected monetary value:

(0.667 * 25000) + (0.33 * - 15000)

$16675 - $4950

= $11,680

Third option (SYSTEM B) :

Additional sales - system cost

$20,000 - $25,000 = - $5,000

From the expected monetary value obtained for the three options, System A is the best option with $11,680

4 0
2 years ago
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