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Harrizon [31]
3 years ago
8

Holten Farm sells new tractors and pays each salesperson a commission of $1,000 for each tractor sold. During the month of Augus

t, a salesperson, Fred, sold 3 new tractors. Jacob pays Jason on the 10th day of the month following the sale. Fred operates on the cash basis; the tractor dealer operates on the accrual basis. Which of the following statements is true?
A) Fred will recognize commission revenue earned in the amount of $3,000 in August.
B) Jacob will recognize commission expense in the amount of $3,000 in August.
C) Fred will recognize commission expense in the amount of $3,000 in September.
D) Fred will recognize revenue in the same month that the tractor dealer recognizes expense.
Business
1 answer:
OlgaM077 [116]3 years ago
5 0

Answer:

B.Jacob will recognize commission expense in the amount of $3,000 in August

Explanation:

Jacob will recognize commission expense in the amount of $3,000 in August for the 3 tractors that was sold and Jacob was the salesperson who pays Jason the amount of cash realized on the 10th day of the month following the sale of the tractors.

The Commission expenses can be calculated as:

(commission of $1,000× Number of tractor 3)

=$3,000

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George operates a business that generated revenues of $51 million and allocable taxable income of $1.26 million. Included in the
sammy [17]

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

8 0
2 years ago
Read 2 more answers
Major Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
Annette [7]

Answer:

a. $ 82, 063

b. - $ 19,206

c.  11.24%

Explanation:

Net Present Value is calculated by taking the Present Day (Discounted) value of all future Net Cash flows based on the company`s Cost of Capital and subtracting the Initial Cost of the Investment.

<em>Using a Financial Calculation</em>

a.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 8%

NPV = $ 82, 063

b.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 12%

NPV = - $ 19,206

c.

Internal Rate of Return = P  + ((N-P)×p/(p+n))

                                      = 8% + ((12%-8%)×$ 82, 063/($ 82, 063+ $ 19,206))

                                      = 11.24%

3 0
3 years ago
Initially, a competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new te
antoniya [11.8K]

Answer:

The correct answer is: declines; higher economic; will incur losses.

Explanation:

A perfectly competitive firm has 1,000 firms that are operating in the long-run equilibrium.  

Out of these firms, 100 firms have adopted a new technology that has caused their average cost of production to decline.  

These firms will be able to produce more output at the same cost. As a result, their supply will increase, this will cause the price to decline.  

The firms with new technology that are facing a lower average cost of production will earn positive economic profits as they have lower costs.  

The firms with old technology that have higher production costs will incur economic losses as they have higher costs.

7 0
3 years ago
Which of the following is defined as an unplanned event that results in damage to property? Hazard, injury, accident, violation
Zina [86]

Answer:

violation/accident.

Explanation:

Its violation because its a violation to the property, but you also can use accident because it mean a situation not done on purpose or  something unexpected which will cause damage or injury.

4 0
2 years ago
Which of the styles on Blake and Mouton’s Leadership Grid has high concern for interpersonal relationships and low concern for t
hoa [83]

Answer:

Country Club

Explanation:

The Blake and Mouton's Leadership Grid has this Country Club which emphasise on the people more, that is about their well being.

This environment concludes that if employees are happy and in good positive attitude they will automatically work hard and achieve the results.

In this case the management is not much conscious about the results as they believe that results will be better, but generally it is observed that due to lack of any managerial control and directions the task is not achieved.

6 0
2 years ago
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