Answer:
Number of times bond interest charges were earned = 5.44
Explanation:
Given data,
Bond Interest Rate = 6%
Bond Amount = $1200000
Net Income before Income Tax = $320000
Bond Interest charges Earned
:
= Bond Value × Interest Rate
= $1,200,000 × 6%
= $72,000
Net Income before Interest
:
= Net Income Income Before Interest + Interest
= $320,000 + $72,000
= $392,000
Number of times bond interest charges were earned
:
= Net Income before Interest and taxes ÷ Interest charges
= (392,000 ÷ 72,000
)
= 5.4444
Number of times bond interest charges were earned = 5.44
Answer:
Debit Accounts receivable $2170
Credit sales revenue $2000
Credit State tax $120
Credit Local tax $50
Explanation:
When sales are made on credit, the entries required are debit Accounts receivable and credit Sales revenue.
Considering the taxes, the entries would then be grossed by the tax percentage and the grossed amount is debited to accounts receivable while the taxes are credited to the tax payable account.
State tax
= 6% * $2,000
= $120
Local tax
= 2.5% * $2,000
= $50
Total receivable
= $2000 + $120 + $50
= $2170
Answer:
may be liable for both the negligent and intentional acts.
Explanation:
In the case when an agent is within the scope of agent relationship that committed both type of acts i.e. negligent and intentional that results the injury to the third party so here the principal may be liable for both the act i.e. negligent and intentional as it is followed by the doctrine of respodeat superior
Therefore the second option is correct
Answer:
correct option is (a) The lesser of 50% of business wages or 25% of wages plus 2.5% of the unadjusted basis of qualifying property
Explanation:
As we know that when a single taxable income of the single filer is exceed by $157,000 by the $50000 or more, then their QBI must not exceed
so
- 50% of the taxpayer's share of W-2 wages paid in respect of a qualified trade or occupation
- 25% of such salary and 2.5% on a volatile basis immediately after acquiring the tangible depreciation asset
Qualified Business Income (QBI) exemption refers to taxable income recognized by a partnership, S corporations, LLC or sole proprietorship. This is below the line deduction that does not deduct your AGI, but it does reduce the amount of taxes.
Answer:
(A) Kleiner Merchandising Company:
Goods available for sale = $24,500
Cost of goods sold = $17,900
Gross profit = $3,600
Net income = $1,550
(B) Krug Service Company:
Net income = $16,300
Explanation:
(A) Kleiner Merchandising Company:
Goods available for sale:
= Beginning inventory + Net purchases
= $11,000 + $13,500
= $24,500
Cost of goods sold:
= Goods available for sale - Ending inventory
= $24,500 - $6,600
= $17,900
Gross profit = Net sales - Cost of goods sold
= $21,500 - $17,900
= $3,600
(b) Kleiner Merchandising Company:
Gross profit = $3,600
Net income = Gross profit - Expenses
= $3,600 - 2,050
= $1,550
Krug Service Company:
Net income = Revenues - Expenses
= $26,000 - $9,700
= $16,300
