Answer:
A. $287,000
B. $192,050
Explanation:
a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.
b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050
Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:
=[$287,000 - ($181,050-$86,100)]
=$287,000-$94,950
=$192,050
9514 1404 393
Answer:
C. To avoid having to pay for hospital bills resulting from an accident they cause
Explanation:
The purpose of any sort of insurance is to limit or eliminate the policy-holder's liability. Medical insurance in an auto policy pays for medical bills the policy-holder might otherwise be liable for as a consequence of an auto accident.
Answer:
c. When held in isolation, Stock A has more risk than Stock B
Explanation:
Beta is the measurement of Company`s business risk. Therefore, a higher beta shows a higher risk and a lower beta shows lower risk.
Answer:
$215,000
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.
The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.
Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000
The adjustment should be added in the retained earning balance as it was expensed earlier.
Adjusted retained earning balance = $200,000 + $15,000 = $215,000
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For the purpose of accounting, there are three types of expenditure.
1) Capital Expenditure
It is the amount incurred
in acquiring long term assets like land, buildings, equipments (which
are used for the purpose of earning revenues). These costs are reflected
in the account of Property, Plant and Equipment.
2) Revenue
Expenditure
It is the cost incurred in one accounting year wherein the benefits
are also enjoyed in the same period only. It does not increase the
earning capacity of the business, instead, it maintains the existing
earning capacity of said business. This expenditure is recurring in
nature like salaries and wages, selling and distribution expenses.
3) Deferred
Revenue Expenditure
It is a revenue Expenditure which has been incurred
within the current accounting year but its benefit will be extended to a
number of years. This cost is charged to the Profit and Loss account.
Example of this is advertising cost.
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