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Novay_Z [31]
3 years ago
5

Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the f

ollowing bonuses for certain employees for financial accounting purposes:
$40,000 for Ken.
30,000 for Jayne.
20,000 for Jill.
10,000 for Justin.
How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenario:
Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.
Business
1 answer:
Wittaler [7]3 years ago
4 0

Answer:

$100,000

Explanation:

Based on the information given Jorgensen may lessen the amount of $100,000 in the second year which is year 2 reason been that the amount are NOT FIXED amount at the end of the year 1 because the employees are qualified to receive the bonus amount only in a situation where the employees are been employed on the date the bonuses amount were been paid.

Employees Deductible Year 1 Deductible Year 2

Ken $0 $40,000

Jayne $0 $30,000

Jill $0 $20,000

Justin $0 $10,000

Total $100,000

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Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the
Ann [662]

Answer:

a. Capitalized : Equipment

b. Expensed

c. Capitalized : Building

d. Expensed

e. Capitalized : Equipment

f.  Capitalized : Building

g. Capitalized : Building

h. Capitalized : Equipment

Explanation:

The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.

The costs exclude amounts collected in tax on behalf of third parties

Also not Capital expenditures increase the earning ability of the asset whilst  revenue expenditure is the maintenance of such asset.

6 0
3 years ago
Tristan is a salesperson who has been in charge of the Dragos Textile Company account for years. He handles all of Dragos' order
RSB [31]

Answer:

The correct answer is A that is relationship selling

Explanation:

Relationship selling is the term which is described as the technique of sales which focuses or involved on the interaction among the salesperson and the buyer instead of the details or the price of the product.

In this case, Tristan who is a salesperson, who is a charge of the textile company and takes the employees of the company out for dinner. He is involved in the relationship selling.

6 0
3 years ago
To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the foll
Zarrin [17]

Answer:

Option (D) is correct.

Explanation:

Cost of common stock:

= (Expected dividend at the end of Year 1 ÷ Price of stock) + Growth rate.

= (1.45 ÷ 22.50) + 0.065

= 0.0644 + 0.065

= 0.1294 i.e., 12.94%

Conclusion:-

Cost of common stock = 12.94%

Note:-

D1 = Expected dividend at the end of Year 1,

P0 = Current price of common stock, and

gL = Growth level i.e., growth rate in dividend.

3 0
4 years ago
An example of a capital budgeting decision is deciding:
pantera1 [17]

An example of a capital budgeting decision is deciding whether or not to purchase a new machine for the production line.

Capital budgeting decisions are frequently related to choosing to adopt a brand new mission or now not that expands a firm's current operations. commencing a new save area, for instance, might be one such choice.

Capital budgeting's major purpose is to perceive tasks that produce cash flows that exceed the value of the assignment for a company.

Capital budgeting is the method a commercial enterprise undertakes to evaluate capacity for essential projects or investments. creation of a brand new plant or a massive investment in an outdoor assignment are examples of tasks that would require capital budgeting before they may be authorized or rejected.

Learn more about capital budgeting here: brainly.com/question/24301148

#SPJ4

5 0
2 years ago
Exercise 10-30 Cost Variance Investigation (LO 10-4)The director of cost management for Odessa Company uses a statistical contro
OLEGan [10]

Answer:

a. The cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost is $2,280.

b.The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.

Explanation:

According to the given data, the standard direct-labor cost during each of these months was $38,000, therefore, in order to calculate  the cutoff value for investigation, we would have make the following calculation:

Cutoff value for investigation =6% of Standard cost =$38,000 *6% =$2,280

The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.

4 0
3 years ago
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