Answer:
John should include $1,600 as rental income on his Year 4 tax return as a result of the $2,000 payment.
Explanation:
As a cash-basis taxpayer, John's taxable income is based on the actual cash receipts and payments made in the accounting period. The refundable part of the rent should not be included as rental income since it is a security deposit that would be returned at the end of the lease period. If John were an accrual-basis taxpayer, the rental income to be included would have been only $800 representing income for Year 4.
Answer:
Price floor binding
b. price ceiling binding
price floor and binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The minimum price of milk is above equilibrium price. So, it is a binding price floor
The maximum price of milk is below equilibrium price. It is binding price ceiling
If teenagers can't find jobs due to minimum wages law. It means that the minimum wage must be above equilibrium price. This is because it is when price is above equilibrium price that supply of labour outstrips demand. So, it is a binding price floor
Answer:
$0.71
Explanation:
Calculation to determine What was the average selling price for the common stock issued
Using this formula
Common stock issued avarage selling price=
Paid-in Capital in Excess of Par-Common÷Common Stock par value per share
Let plug in the formula
Common stock issued avarage selling price=($600,000+$98,000)/($98,000÷$0.10)
Common stock issued avarage selling price=$698,000/$980,000
Common stock issued avarage selling price=$0.71
Therefore the average selling price for the common stock issued is $0.71
