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Elena L [17]
3 years ago
15

George operates a business that generated revenues of $51 million and allocable taxable income of $1.26 million. Included in the

computation of allocable taxable income were deductible expenses of $240,500 of business interest and $250,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year
Business
2 answers:
sammy [17]3 years ago
8 0

Answer:

Maximum business interest deduction that George will be eligible to claim this year will be $525,300

Explanation:

Maximum business interest deduction is 30% of Adjusted Taxable income (ATI)

Adjusted Taxable income (ATI) = 1260000+240500+250500= $1,751,000

Maximum business interest deduction = 1751000*30%= $525300

ehidna [41]3 years ago
3 0

Answer:

The Maximum business interest deduction to be claim by George this year is  $525,300

Explanation:

The maximum business interest deduction will be 30 percent of Adjustable Tax income.

Adjustable Tax income = Taxable Income +  Business Interest + Depreciation

Adjustable Tax income = $1,260,000 + $240,500 + $250,500

Adjustable Tax income =  $1,751,000

Maximum business interest deduction = 30% ×  Adjustable Tax income

Maximum business interest deduction = 30% × $1,751,000

Maximum business interest deduction = $525,300

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Explanation:

ROE = Net Income / Equity so Equity need to be ascertained.

1.75 = Total Assets/ Total Equity

Total Equity = Total Assets/ 1.75

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= 320,000/1.33

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Total Equity = 240,601.50/1.75

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4 0
3 years ago
A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin an
kakasveta [241]

Answer:

The optimal stocking level is 45 muffins.

Explanation:

First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2

Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60

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optimal stocking level = 30 + 0.75*(50-30) = 45

The optimal stocking level is 45 muffins.

Optimal stocking level = 68.75 Muffins

5 0
3 years ago
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7 0
3 years ago
Which is a form of Malware?
makvit [3.9K]

Answer:

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6 0
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18. Open Market Operations and the Money Multiplier Suppose that the reserve requirement for checking deposits is 10 percent and
Arlecino [84]

Answer

The answer and procedures of the exercise are attached in the following image.  

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