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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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True or False: If Kevin's Fire Engines were a competitive firm instead and $160,000 were the market price for an engine, decreas
Feliz [49]

Answer:

False

Explanation:

Kevin should not rise the level of production from 5 to 6 as the impact of the price dominates this situation

Also the market is not depend on the Kevin fire engines because of the competitive market

Plus the supply and demand relation is inverse and not depend on the change in price level in a competitive market

If the price is decreased from $160,000 to $120,000 so the quantity of the production would not be impacted

In addition to this, the total revenue could be impacted when there is a reduction in the price that produced more sale due to this there is a slightly change in upward and downward

Also the change would never be in the similar production as compare to the change in price

Therefore the given statement is false

8 0
3 years ago
A manager who makes a situation more efficient could be described as a(an) leader formulator strategist implementer
Nataliya [291]
The answer is an implementer. A manger who is an implementer not only makes situations more efficient for his workers but also more reliable. A formulator on the other hand is some who innovates. A formulator thinks outside of the box and would often want dramatic results. 
8 0
3 years ago
g Consider the income-expenditure model. Suppose that the marginal propensity to consume is equal to 0.8. A reduction in taxes o
RideAnS [48]

Answer:

increase by 400 billion dollars

Explanation:

marginal propensity to consume = mpc

tax multiplier = -mpc/1-mpc

from our question we were given mpc to be 0.8

-0.8/1-0.8

= -0.8/0.2

= -4

change in output = -4(-100)

= 400 billion dollars

for a $100 tax decrease, output will increase by $100 billion x 4

= $400 billion

3 0
3 years ago
A firm may pay efficiency wages in an attempt to a. entice workers to work the night shift rather than the day shift. b. improve
BartSMP [9]

Answer:

the answer is: B) improve productivity by reducing turnover.

Explanation:

The efficiency weigh theory states that when employers increase their employees' wages above average market wages, they will earn higher profits due to:

  • An increase in labor productivity since the employees are very motivated to work in the company and employee turnover decreases.
  • The increase in labor productivity and the decrease in employee turnover will offset the increase in costs due to higher wages.
8 0
3 years ago
Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Va
pochemuha

Answer:

See below

Explanation:

With regards to the above, Jaheem's business profit increase is calculated as

= Fixed cost + Desired profit/Contribution margin

Given that;

Fixed cost = $400,000

Desire profit = $22,000

Contribution margin = $9.4

= $400,000 + $22,000/($24 - $14.6)

= $422,000/$9.4

= $44,894

Therefore, increase on profit

= $44,894 - $22,000

= $22,894

6 0
3 years ago
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