Answer:Accounting profit equals total revenue minus accounting costs
Explanation: Accounting profits are actual profits a company makes during a particular accounting year and it can be calculated using the company's total revenue (sales) minus the company's costs ( costs of sales (purchases) plus operating costs) for that particular period under review.
Answer:
not taxed
Explanation:
original issue discount which are new issue municipal bonds do not have their interest income taxed at the federal level by the IRS. An investor that purchases the municipal bond from the secondary market however would be accreted and have his income from the bond treated as ordinary income and would be taxed. But interest from original issue discount bonds are not taxed and are also not taxed when held to maturity
Answer:
B. $214,000
Explanation:
The insurance premium paid for a 3 year period should not have been expensed out rightly but recognized as expense through periodic amortization spread over the entire period.
As such, the amount that should have been expensed in 2011 for insurance premium is
= 1/3 × $30,000
= $10,000
Recognizing an expense of $10,000 rather than $30,000 would have resulted in an increase in the tax expense by
= 70% × ($30,000 - $10,000)
= $14,000
As such, the retained earnings would have been
= $200,000 + $14,000
= $214,000
The overstatement of an expense would have resulted in an understatement of net income and thus and understatement of the retained earnings.
Answer:
A) Bruce's basis in the land at the time of the sale = $100,000 (same as his father's)
B) When computing his realized gain, what amount does Bruce use as the selling price and as the contract price?
Selling price= $360,000.
Contract price = $360,000 (selling price) - $120,000 (assumed mortgage) = $240,000.
C) Bruce's total realized gain on the sale = $360,000 - $10,000(selling costs) - $230,000(land + improvements) = $120,000
But his recognized gain in the year of the sale is = ($120,000 / $240,000) x $90,000 = $45,000
Answer:
Net Income for the year 234.500
Explanation:
Income Cash collected 375.000
Income Customer Owed 67.000
Total Income 442.000
Expenses Employees 127.000
Utilities 57.000
Rent 23.500 The effect on results of for 1 year was paid for 2 years in advance.
Total Expenses 207.500
Net Income 234.500
