The Tax Cuts and Jobs Act changed the way tax is calculated.
For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things: The amount you earn. The information you give your employer on Form W–4.
Answer:
$208,000
Explanation:
The computation of the absorption-costing income is shown below:
As we know that
Net income = Gross profit - variable expense - fixed expense
where,
Gross profit is
= Sales - cost of goods sold
= (22000 units at $30) - (22,000 units at $14)
= $660,000 - $308,000
= $352,000
The $14 come from
= 8 + 150,000 ÷ 25,000
= 8 + 6
= 14
Now the variable expense is
= 22000 at $2
= $44,000
And, the fixed expense is $100,000
So, the net income is
= $352,000 - $44,000 - $100,000
= $208,000
Answer:
c. a period cost
Explanation:
Option C, period cos is the correct answer because the period cost is not related to the production and manufacturing of the commodity. Rather it is the cost incurred outside the factory such as marketing expenses, travelling expenses, etc. Therefore, the option "period cost" is the correct answer.
Answer:
The $1,200,000 should be accounted for in Grove’s special revenue funds
Explanation:
Special revenue fund: The special revenue fund is a fund that is introduced by the government to collect the money from the public. It is made to fulfill the need for specific purposes/ projects.
The computation of special revenue funds is shown below:
= Income received for providing the meals to the needy people + financing of sales tax with respect to tourist facilities maintenance in the shopping district
= $300,000 + $900,000
= $1,200,000
Answer:
The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.
Explanation:
Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.
<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>
