Answer is : legal title
The factor which determines whether or not goods should be included in a physical count of inventory is:
a. legal title.
b. whether or not the purchase price has been paid.
c. management's judgment.
d. physical possession.
a. legal title
They being to fear things that could happen in real life.
Answer:
Qualified Business Income Deduction is $9,800
Tax liability = $4,564
Explanation:
Qualified business income is calculated by subtracting an individual's ordinary deduction from a qualified business or trade from the individual's ordinary income.
Net income = $61,000
Standard deduction = $12,000
Modified taxable income;
$61,000 - $12,000 = $49,000
QBI Deduction (Sec 199A) is the lesser of:
[0.2 × 49,000 < 0.2 × 61,000]
$9,800 < $12,200
Therefore Qualified Business Income Deduction is $9,800
Taxable income = $(49,000 - 9800) =$39,200
Answer:
d.$38,448
Explanation:
The computation of the expected change in net income is shown below:
The net purchase for one day = $11,760
For 20 days excluding discount period i.e 10 days , it would be
= $11,760 × 20 days
= $235,200
The interest would be
= $235,200 × 10%
= $23,520
Now the gross purchase is
= (Net purchase × total number of days in a year) ÷ (1 - discount rate)
= ($11,760 × 365 days) ÷ (1 - 0.02)
= $4,292,400 ÷ 0.98
= $4,380,000
The discount is
= $4,380,000 × 0.02
= $87,600
After tax rate, the change in net income would be
= ($87,600 - $23,520) × (1 - tax rate)
= $64,080 × 0.60
= $38,448
