Answer:
B. $24,000
Explanation:
The pass-through deduction or the section 199A deduction as it is officially called is a reduction by 20 percent of your income tax provided by the new tax law set in place for the 2018 tax year. It is eligible for small business owners who run a pass-through business and whose tax income doesn't exceed $157,500 for singles and $315,000 for married couples.
To calculate the figure, you simply need to find 20% of your business profit. Jennifer has a taxable income of $150,000, which is less than the $157,500 limit to qualify for the pass-through deduction. So her pass through deduction becomes
20% of $100000 + $20,000
= 20/100 x $120,000
= $24,000
Note: Real Estate Investment Trust (REIT) dividend income and qualified Publicly Traded Partnership (PTP) income also are eligible for the pass-through deduction by law, hence the addition of the $20,000.
Answer:
$60,000
Explanation:
The computation of the estimated manufacturing overhead is shown below:
Estimated manufacturing overhead = Direct labor hours × predetermined overhead rate
where,
Direct labor hours = Total Direct labor cost ÷ Cost per hour
= ($100,000 × 75%) ÷ ($5)
= 15,000 direct labor hours
Now the estimated manufacturing overhead equal to
= 15,000 direct labor hours × $4
= $60,000
Answer:
Decrease
Explanation:
Calculation to determine overall break-even point for the entire company
Contribution margin for C90B = ($19,950-
$5,985)/$19,950
Contribution margin for C90B = 70%
Contribution margin for Y45E =( $26,190- $10,476)/$26,190
Contribution margin for Y45E= 60%
Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company
Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%
Answer:
Arithmetic average is 3.15% and Geometric average is 2.33%.
Explanation:
Answer:
Annual depreciation= $2,700
Explanation:
Giving the following information:
Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,000 salvage value.
The straight-line depreciation method provides an annual depreciation expense by dividing the book value by the number of useful years.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (32,000 - 5,000)/10= $2,700
