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djyliett [7]
3 years ago
13

Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction

in each of the following situations.
a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $170 for speeding, including $125 for legal advice in connection with the ticket.
Deductible Amount =__________
b. Michelle paid $795 to reserve a parking place for her food truck for the fall football season outside the local football arena. Michelle also paid $140 for tickets to a game for her children.
Deductible Amount =_____________
c. Michelle provided a candidate with free advertising painted on her truck during the candidate’s campaign for city council. Michelle paid $680 to have the ad prepared and an additional $380 to have the ad removed from the truck after the candidate lost the election.
Deductible Amount=___________
Business
1 answer:
Alborosie3 years ago
6 0

Answer:

A. Deductible Amount = $125

This is because legal advice is fully deductible while there are no deductions available for fines.

B. Deductible Amount = $ 795

This is because the amount used in reserving parking is fully deductible, while the amount for ticket for her children is personal and hence doesnt fall under deductibles.

C. Deductible Amounts = $0

For all and any political purpose, deductibles doesnt apply. Whether it is in form of cash or kind. Hence, there is no deductions in this case.

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Triss [41]

1. (a) Record a liability

2. (a) Record a liability

3. (b) Disclose in notes

<h3>What happens if you fail to record a liability?</h3>

Frequently, failing to register a responsibility entails also neglecting to record an expense. Income is decreased by expenses; but, in this case, this wasn't documented so that net income wouldn't be impacted when it should have been. The net income will be overstated as a result.

<h3>On a balance sheet, how do you record liabilities?</h3>

Unearned income or a "payables" account is normally where liabilities are recorded. In most cases, unless they are regarded as contra liabilities, they have a credit balance. As a result of discounting or lowering the amount owed, this kind of liability has a negative balance.

To know more about record a liability visit:

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4 0
1 year ago
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Pur
Alinara [238K]

Answer and Explanation:

The journal entries are shown below:

On June 3

Merchandise Inventory $4,100

                   To Accounts payable $4,100

(Being the purchase of goods on credit is recorded)  

On Jun 5

Accounts payable $1,100  

         To Merchandise   Inventory  $1,100

(To record purchase returns)  

On June 6

Merchandise Inventory $1,000

     Accounts payable  $1,000

(Being the purchase of goods on credit is recorded)  

On June 11

Accounts payable ($4,100 - $1,100) $3,000

               To Cash  $2,960

               To  Inventory ($4,100 - $1,100) × 2%  $60

(Being the payment is recorded)  

On June 22

Accounts Payable $2,000     ($3,000 - $1,000)

    To Cash  $2,000

(Being the payment on account in full is paid)

4 0
3 years ago
If a consumer chooses not to perceive they are reaching ________.
Yuliya22 [10]
Quality value price reach consumer goods
8 0
3 years ago
If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below av
denpristay [2]

Answer:

The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.

Explanation:

A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.

In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.

3 0
3 years ago
3. Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions.
VikaD [51]

Answer:

The correct answer is:

a) A real asset is a Tangible Asset, Like a machine, a Land or a Building. Real Assets are used to generate resources and, therefore, produce changes in the financial situation of the company that owns them. While a financial asset on the other hand constitutes the right to collect an account in the future. In the case of companies, you can think of an account or document receivable; For natural persons, a financial asset can be a document that compares a plaque investment in a banking institution and that will produce a cash flow in the future.

b) Investment projects are independent, perfectly divisible, and the company can invest any amount of money in a project. Only investment opportunities existing at the present time and not future are considered.  While capital budgeting, it is a projection either in the short term or in the long term, and the reasons for making this budget are that:  Benefits from the point of view of administrative planning and control., an investment proposal must be judged in relation to whether it provides a return equal to or greater than that required by investors y the evaluation of projects through mathematical-financial methods.

c) When a corporation is established, its shares may be in the hands of a small group of investors, perhaps the company's administrators plus some sponsors. In this case, the shares are not sold to the public and the company is closed. Over time, if the company grows and new shares are issued to raise capital, these shares go public. The company becomes a public company.

d) Limited liability means that the liability of each partner's debt is limited to their investment in the business, that is, they cannot be held personally responsible for the debts of other parties, if the company is sued or forced to close, the Each partner's business assets may be liquidated, but his personal assets are safe. Furthermore, unlimited liability means that all parties are responsible for all debts of the company, regardless of how it was created. If a partner commits acts that cause the business to reconcile, all parties become part of the process, not just the partners whose actions caused the judgment.

8 0
3 years ago
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