Answer:
$1,200
Explanation:
during 2019, Harry can deduct:
- 50% of the costs of meals while on he is on business trips
- 100% of airfare and other travelling costs
- 100% of lodging costs while doing business
Harry's deductions = (50% x $200) + (100% x $600) + (100% x $500) = $100 + $600 + $500 = $1,200
Any expenses incurred during vacation are not deductible.
Answer:
Given:
12% bonds have a face value of $35,000,000
Bonds sold for $37,702,483 based on the market interest rate of 10%.
∴
The interest expense on July 1 can be computed as
Interest expense = Bonds sold × Effective market interest rate (
= 5%)
= $37,702,483 × .05 (1/2 of the effective interest rate)
= $1,885,124
⇒ The interest expense on July 1 is $1,885,124
Answer:
a. What is Local's gross margin? (Round to one decimal place.)
0.4412 / 44.12%
b. What is Local's operating margin? (Round to one decimal place.)
0.1618 / 16.18%
c. What is Local's net profit margin? (Round to two decimal places.)
0.1049 / 10.49%
Explanation:
Local Co.
Income Statement for the year ended MM DD, YY
$, million
Sales 10.20
-Cost of sales <u> 5.70</u>
=Gross Income 4.50
-Selling, general and administrative expenses 0.55
-Research and development 1.20
-Annual depreciation charges <u> 1.10 </u>
=Operating Income 1.65
-Tax rate of 35 %. <u> 0.58 </u>
=Net Income <u> </u><u>1.07 </u>
(a) Gross Margin = Gross Income / Sales = 4.50 / 10.20 = 0.4412 = 44.12%
(b) Operating Margin = Operating Profit / Sales = 1.65 / 10.20 =0.1618=16.18%
(c) Net Profit Margin = Net Income / Sales = 1.07 / 10.20 = 0.1049 = 10.49%
