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svet-max [94.6K]
4 years ago
8

Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2016, vernon entered into a lease to rent a building for

use in his business at $3,000 a month. on that day vernon paid 18 months rent on the building, a total of $54,000 ($3,000 × 18 months). how much may vernon deduct for rent expense on his 2016 tax return?
Business
1 answer:
tester [92]4 years ago
8 0

Answer:

$9,000

Explanation:

Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.

= 3 months x $3,000 per month = $9,000

This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.

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Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month. Under the APR formula, what
alexandr402 [8]

Answer: $8

Explanation:

Total loan is $3,000

Monthly instalments of $258

Tenor of 12 months

Total interest paid on loan = $258 x 12= $3,096

Interest = $3,096 - $3,000 = $96

Apr = $96/$3000= 0.032

= 0.032 x 100

= 3.2% annual rate

= 3000 x 3.2%

= 96/12 = $8

4 0
3 years ago
Read 2 more answers
Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and adminis
IgorLugansk [536]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $30 per unit is computed as follows. Direct materials $ 4 per unit Direct labor $ 16 per unit Variable overhead $ 4 per unit Fixed overhead ($600,000 / 100,000 units) $ 6 per unit.

We don't have the information of selling price and units sold.

Income statement:

Sales

Variable costs:

Direct material

Direct labor

Variable manufacturing overhead

Total variable cost (-)

Contribution margin

Fixed costs (-)

Net operating income

3 0
3 years ago
If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t
inessss [21]
Mean is where you add all of the values together and then divide the total by the number of values.

 After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

 After you get this number, you divide by the number of values, in this case, 5.

 210,000/5 = 42,000

6 0
3 years ago
Total variable costs ________ with decreasing output. A) always increase B) always decrease C) initially increase and then decre
lbvjy [14]

Answer:

The answer is B.

Explanation:

Total variable cost always increases as output(unit of production) increases. And it also decreases with decreasing output(unit of production).

Variable cost is different from fixed cost in that it changes with output.

6 0
3 years ago
A currency is said to have appreciated when it commands a ____________ amount of a foreign currency. it results in foreign goods
Tasya [4]

A currency is said to have appreciated when it commands a <u>larger</u>, amount of foreign currency. it results in foreign goods becoming <u>cheaper</u> for a country.

Foreign currency is something this is usually generic to have a price as a medium of alternate in order that it may be traded for goods and offerings. The trading gadget within an economy is based on its foreign money, which is normally specific to a rustic and issued with the aid of that country's government.

Currency is a medium of exchange for goods and offerings. In brief, it is cash, in the shape of paper and coins, typically issued by using a government and normally regularly occurring at its face price as a method of payment.

Learn more about Currency here: brainly.com/question/2202418

#SPJ4

4 0
2 years ago
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