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ZanzabumX [31]
3 years ago
6

Don Juan, a single taxpayer, is the sole owner of DJ’s Inc., an S Corporation. This year, DJ’s Inc. incurred a massive $600,000

business loss, all of which is allocable to Don Juan as the sole shareholder. Assume that the $600,000 loss is not limited by the basis, at-risk, or passive loss rules, and that Don Juan has no other business income or business losses. How much of the $600,000 loss will Don Juan be able to deduct this year? What happens to any loss not deducted this year?
Business
1 answer:
Darina [25.2K]3 years ago
4 0

Answer:

Don Juan is sole business owner and his loss in excess to the minimum threshold amount is $250,000. So Don Juan may deduct the amount $350,000 in terms of loss.  

If Don Juan does not deduct the loss this year, it would be carried forward to next fiscal statement

Explanation:

Part 1. The calculation is made as below

Excess of business loss ($600,000) – (other business income + Threshold amount ($250,000))

The minimum threshold amount is deductible from the Tax comes out to be $350,000

Part 2. The loss is reflected in next year’s tax statement as net operating loss and can be carried forward. So if Don Juan miss the loss deduction claim, he can do it next year.  

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If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments an
Artemon [7]

Answer:

If the government sets out to make home buying easier for more people by forcing lenders to accept LOWER down payments and LOWER interest rates, the result will likely be an INCREASE in housing prices

Explanation:

If either interest rates or down payment amounts lower, the quantity demanded for houses will increase a little, possible leading to a small increase in the prices of houses.

If both interest rates and down payment amounts lower, then the quantity demanded for houses should increase a lot, which will result in an increase in the prices of houses.

This happened during the first decade of our century and everything was fine until the interest rates started to increase and people could no longer pay their mortgages and BOOM, the economy busted.

7 0
3 years ago
The market price of pomegranates is $2, and JoAnne sells 25 pomegranates at the local farmer's market. The total revenue is and
leva [86]

Answer:

$50 and $2

Explanation:

The computation of the total revenue and the marginal revenue is shown below:

Total revenue is

= Price ×  quantity

= $2 × 25

= $50

And, the marginal revenue is received collected from one unit i.e price of the one units that equivalent to $2

Hence, we simply applied the above formula to determine the total revenue and the marginal revenue

4 0
3 years ago
The main units of local government.​
miskamm [114]

Answer:

There are four main types of local government- counties, municipalities (cities and town), special districts, and school districts. Counties are the largest units of local government, numbering about 8,000 nationwide. They provide many of the same services provided by cities.

Explanation:

4 0
2 years ago
Read 2 more answers
At the beginning of the year, the Dallas Company had the following accounts on its books: Accounts Receivable $264,000 Debit All
lukranit [14]

Answer:

<u>Explanation:</u>

Requirement :

Date Account title and Explanation      Debit                      Credit

Dec.31   Accounts receivable                $2,346,000  

           Sales revenue                                                $2,346,000

[To record credit sales for the year]      

Dec.31 Cash                                    $2,350,000  

          Accounts receivable                                    $2,350,000

[To record collections on account for the year]      

Feb.17 Allowance for doubtful account    $7,500  

           Accounts receivable-R.St. John               $7,500

[To write off R. St. John's account]      

May 28 Allowance for doubtful account   $4,800  

          Accounts receivable-G. Herberger               $4,800

[To write off G. Herberger's account]      

Oct 13 Accounts receivable-G. Herberger $1,200  

            Allowance for doubtful account                 $1,200

[To reinstate G. Herberger's account for partil recovery]      

Oct 13 Cash                                                  $1,200  

              Accounts receivable-G. Herberger           $1,200

[To record collection from G. Herberger]      

Dec 15 Allowance for doubtful account $5,000  

                Accounts receivable-R. Clancy                 $5,000

[To write-off R. Clancy's account]      

Dec 31 Bad debt expense [$2,346,000 x 0.8%] $18,768  

                Allowance for doubtful account                  $18,768

[To record allowance for doubtful accounts]  

<u>Requirement b: </u>

Accounts Receivable $242,700

Less: Allowance for Doubtful accounts $19,168

Accounts receivable net $223,532

<u>Calculations: </u>

T-Accounts

Accounts receivable              Allowance for doubtful account

$264,000 Beg.                                    $16,500 Beg.

$2,346,000          $2,350,000  $7,500             $1,200

$1,200                       $7,500      $4,800                 $18,768

                               $4,800  $5,000  

                                $1,200    

                                 $5,000    

                                   $242,700 End.                 $19,168 End.

4 0
3 years ago
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured
Lemur [1.5K]

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

Sell for scrap= 65,000 - 50,000= 15,000

Continue processing= 150,000 - 80,000 - 50,000= 20,000

7 0
3 years ago
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