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USPshnik [31]
3 years ago
7

Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting Brussels. Rent inco

me was $5,000. Related expenses for the year were as follows: Real property taxes $3800 Mortgage interest $7500 Utilities $3700 Insurance $2500 Repairs $2100 Depreciation $15000 a. Determine the effect the rental activity has on Adelene's AGI? $__________b. Determine how much of the rental income is reportable. $___________
Business
1 answer:
frez [133]3 years ago
7 0

Answer:

a) The effect the rental activity has on Adelene's AGI is $0.                          

b) The total rental income is less than the total expenses for the year, so the reportable rental income is $0.

Explanation:

a)

particulars                                      amount                  amount

rental income                                                                $5,000

property taxes                               $3,800

mortgage interest                          $7,500

utilities                                             $3,700

insurance                                         $2,500

repairs                                              $2,100

depreciation                                     $15,000

total deduction                                                    $34,600

AGI                                                                           $0

Therefore, The effect the rental activity has on Adelene's AGI is $0.                          

b)

particulars                                      amount

Real property taxes                       $3,800

mortgage interest                          $7,500

utilities                                             $3,700

insurance                                         $2,500

repairs                                              $2,100

depreciation                                     $15,000

total expenses                                  $34,600

Therefore, The total rental income is less than the total expenses for the year, so the reportable rental income is $0.

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11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of produ
Delvig [45]

This question is incomplete, the complete question is;

Martinez company's relevant range production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:-

                                                                 Average cost per unit

Direct materials                                                 $7.00

Direct labor                                                        $4.50

Variable manufacturing overhead                   $1.40

Fixed manufacturing overhead                        $4.00

Fixed selling expense                                       $4.00

Fixed administrative expense                          $2.10

Sales commissions                                            $1.10

Variable administrative expense                      $0.55

If 8,000 units are produced,

a) what is the total amount of manufacturing overhead cost incurred to support this level of production

b) What is this total amount expressed on a per unit basis

Answer:

a) the total amount of manufacturing overhead cost incurred to support this level of production is $51,200

b) What is this total amount expressed on a per unit basis is $6.40

Explanation:

a)

Given that;

number of units produced is 8,000 units

Variable manufacturing overhead is $1.40

Variable manufacturing overhead cost will be units produced / Variable manufacturing overhead

so Variable manufacturing overhead cost = 8000 units × $1.40 =  $11,200

Now  Fixed manufacturing overhead cost = 10000 units × $4 = $ 40,000

Total manufacturing overhead cost is the addition of Variable manufacturing overhead cost and Fixed manufacturing overhead cost

$11,200 + $40,000 = $51,200

b)

Number of units produced = 8,000

therefore Manufacturing overhead per unit = Total manufacturing overhead cost / Number of units produced

51,200 / 8,000 = $6.40

6 0
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Answer:

Their earnings per share may decrease.

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Shareholders of a company may be reluctant to finance expansion through issuing more equity because Their earnings per share may decrease and at the same time debt is always better option to finance.

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3 years ago
A new business owner would want to know the competition’s strengths for all the following reasons EXCEPT
Rudiy27

Answer:

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A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group
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Answer:

the Hawthorne effect

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7 0
3 years ago
A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed by Lux Company on January 1
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Answer:

$112,500

Explanation:

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Depreciation factor = 2 x (1/useful life)  

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Depreciation expense in year 2 = 2/4 x $225,000 = $112,500

4 0
2 years ago
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