Ask question

Ask question

All categories

3 years ago

13

Seth invested $20,000 in Series EE savings bonds on April 1. By December 31, the published redemption value of the bonds had inc

reased to $20,700. How much interest income will Seth report from the savings bonds in the current year absent any special election?

1 answer:

11Alexandr11 [23.1K]3 years ago

6 0

Answer:

700 for interest

Explanation:

You might be interested in

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are

worty [1.4K]

Answer:

Retained Earnings Balance at end of Year 1 = $360

Explanation:

First we need to determine the profit/loss for the year as part of the retained earnings calculation.

Lexington Company

Income Statement for the year ended - Year 1

Revenue Earned $3,200

Less Expenses ($2,420)

Net Income / (Loss) $780

Then we calculate the Retained Earnings Balance

Retained Earnings Statement

Beginning Retained Earnings Balance $ 0

Add Profit earned during the year $780

Less Dividends ($420)

Ending Retained Earnings Balance $360

5 0

3 years ago

The legal definition of "small business" varies by country and by industry. In the United States, the Small Business Administrat

tamaranim1 [39]

Answer:

Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.

Explanation:

1. Better technology for the business.

Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.

2. Better capital management.

Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.

3. Tax benefits

Leasing is tax deductible. Reducing the fiscal pressure over the small business.

6 0

3 years ago

Yakov orders 40 cases of mescal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 200 spark plugs t

vlabodo [156]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0

3 years ago

Grand River Corporation reported pretax book income of $620,000. Included in the computation were favorable temporary difference

Alex

Answer:

The corporation's current income tax expense or benefit would be $86,940.

Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.

Explanation:

Details Amount ($)

Pretax book income 620,000

Favorable temporary differences (160,000)

Unfavorable temporary differences 106,000

Favorable permanent differences <u> (152,000) </u>

Adjusted income 414,000

Tax expenses (at 21%) <u> (86,940) </u>

Profit after tax <u> 327,060 </u>

Therefore, the corporation's current income tax expense or benefit would be $86,940.

Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.

7 0

3 years ago

Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. T

stellarik [79]

Answer:

Monthly factory overhead flexible budget

9000 HRS 10000 HRS 11000 HRS

Variable Overhead 40,500 45,000 49,500

Fixed Overheads 60,000 60,000 60,000

Total Overhead Costs 100,000 105,000 109,500

Explanation:

Fixed Costs do not change with the level of activity and thus remain the same for activity of 9,000 : 10,000 and 11,000 hours whilst variable overheads vary with the level of activity.

5 0

4 years ago