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anzhelika [568]
3 years ago
9

In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clien

ts signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2019, and received payment in full of $12,000. Round any division to four decimal places and If required, round your final answer to the nearest dollar. How much income does Chaya report from these transactions in 2019?
Business
1 answer:
romanna [79]3 years ago
6 0

Answer:

Accrual shows face amount as revenue

revenue = $25,000

(12,000) (7/36)= $2,333 (regognized in 2017)

Total income reported in 2017 = $27,333

The next year she would show the remainder of 12,000 from 26 month contract

For tax purposes, max of 2 year deferral for payment recieved in advance.

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Tyler Weinrich, a single investor in the 15% federal tax bracket, owns 150 shares of Newmont Exploration. The stock has risen fr
aleksandrvk [35]

Answer:

450 shares

$25

Explanation:

a 3 for 1 stock split is when 1 unit of shares is increased by 3

150 shares becomes (150 x 3) = 450

price becomes = $75/3 = $25

stock splits have no economic effect on the company and total shareholders wealth does not change

price / earnings does not change and market equity does not change

8 0
3 years ago
Ashley was nervous about making the ___________. she knew it was likely to be the largest expense in the advertising budget.
aleksandrvk [35]
Ashley was nervous about making the media buy. she knew it was likely to be the largest expense in the advertising budget. When Ashley makes the media buy, she is purchasing the airtime or printed pages that will be used for advertising. These are expensive and consume a large amount of the advertising budget. Successful planning and time goes into making sure the money is spent in the most beneficial way. 
6 0
3 years ago
Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of
Ne4ueva [31]

Answer:

Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product.

Explanation:

Since the production capacity has been exceeded and the company is still running out of stock of the product, there will be no need to increase the promotional budget for the product in order to increase awareness, especially in the short-run.  The implication of the scenario is that the demand for the product is far outstripping the supply and there is an apparent scarcity or shortage of the entity's product in the marketplace.  Until production the capacity has been expanded, the promotional budget for product awareness can be stopped and saved.

4 0
3 years ago
The management of Lanzilotta Corporation is considering a project that would require an investment of $280,000 and would last fo
Neko [114]

Answer:

3.37 years

Explanation:

Calculation to determine what The payback period of the project is closest to

First step is to calculate the Net Cash inflow for the year

Net Cash inflow for the year =$114,000-$31,000

Net Cash inflow for the year =83,000

Now let calculate the Payback period

Using this formula

Payback period=investment/Net Cash inflow for the year

Let plug in the formula

Payback period=$280,000/83,000

Payback period=3.37 years

Therefore The payback period of the project is closest to 3.37 years

5 0
3 years ago
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement
matrenka [14]

Answer:

Net operating income= 46,500

Explanation:

<u>First, we need to calculate the unitary contribution margin:</u>

Unitary contribution margin= 152,000 / 7,600

Unitary contribution margin= $20

Now, the net income for 7,500 units:

Total contribution margin= 20*7,500= 150,000

Fixed expenses= (103,500)

Net operating income= 46,500

8 0
3 years ago
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