Answer:
B) $1,600
Explanation:
The ending cash surrender = total premiums paid - total amount charged to insurance expense = ($2,000 x 4 years) - ($2,000 + $1,800 + $1,500 + $1,100) = $8,000 - $6,400 = $1,600
In this case, a larger portion of the premiums paid are allocated to investments related to the life insurance.
Answer:
C) Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds
Explanation:
the investment-related expenses are deductible as the miscellaneous itemized deductions. in the case the tax-exemp securities are help, the proportionate investment-related expenses are allocated to these securities and the are not allowed since the income is tax-exempt.
Answer:
The correct answer is a. the range of variation.
Explanation:
The Range is the interval between the maximum value and the minimum value; Therefore, share units with the data. It allows to obtain an idea of the dispersion of the data, the greater the range, the more dispersed the data (without considering the affectation of the extreme values). The range is also called amplitude or travel.
Answer:
cash 1,500 debit
accumulated depreciation- VAN 18,000 debit
loss at disposal 500 debit
VAN 20,000 credit
Explanation:
The journal entry must remove the van and their associate account from the company's books.
Therefore, will write-off van account and the accumulated depreciation.
Patel is receiving cash by the amount of 1,500 dollars. It will post the receipts as a debit to this account.
The difference will be considered gain/loss at disposal.
In this case, as the amount received 1,500
is lower than book value: 20,000 - 18,000 = 2,000
it will be a loss at disposal
A cost that remains unchanged in total despite variations in the volume of activity within a relevant range is a fixed cost. The fixed cost is a type of cost behavior which remains unchanged regardless of the unit or activity changes in a production process<span>. There are four types of cost behavior, which are the fixed cost, the variable cost, the mixed cost, and the step cost.</span>
