Answer:
b. $21,000
Explanation:
The accounting treatment for uncollectable accounts under allowance method is: Bad debts expense Debit and Allowance for doubtful accounts credit.
In the Question carried forward balance of Allowance for Doubtful accounts is $7,000 and the current year's allowance for doubtful accounts in total is $28,000.
So the amount for of bad debts expense for the period would be:
<h3>$28,000 - $7,000 = $21,000</h3>
The exclusion of gain on the sale of a personal residence may be elected only by a taxpayer who has owned three or more residences if the tax payer uses the installment method to sale of property.
Explanation:
The present law provides the recognition of roll over and gain on the sale of tax payer. This rule is applied to the purchase price of the replacement residence that equals or exceeds the sale price of residence sold.
The bill has the benefits of exclusion for the individuals who receive compensation from U.S or other agency.
The taxpayers exclude all the portion of gain from the involuntary conversion of principal residence if they had ownership and requirements.
Answer:
$1,468,750
Explanation:
The computation of the today value is shown below:
Let us assume that the today share price of Harley is $35.25
So, the today value would be
= (Invested amount × today share price) ÷ per share
= ($10,000 × $35.25) ÷ 0.24 per share
= $1,468,750
We find out by considering the today share price, invested amount and the per share
Answer: Cross-rate can be found by using the given formula ,
So,
Substituting this into the exchange rate for Yen and dollars, we get
Cross-rate in terms of Yen per Pound is 112.41
b. If cross-rate is 
, this means that Yen is quoted high relative to pound. So, the arbitrage profit per dollar will be,
Suppose we take a a loan for $1 and buy £0.6536. Then we use the pounds to purchase
yen at the cross-rate, so we have
£0.6536 (¥115/£1) = ¥75.164
Now, we replay the loan in dollars by exchanging Yen back to dollars. The cost to repay will be:
¥75.164($1/¥73.47) = $1.02305
Your arbitrage profit is $0.02305 per $1 used.
Answer: <u>
Net income = $201,000</u>
Explanation:
Net income = (Sales - COGS - depreciation - interest expense)(1 - tax)
where;
Sales = $1,400,000
COGS(Cost of goods sold) = $ 800,000
Depreciation = $175,000
Interest expense = $90,000
Tax = 40%
∴ Net income = (1,400,000 - 800,000 - 175,000 - 90,000) 
(1 - 0.4)
Net income = 335,000 0.6
<u>
Net income = $201,000</u>
