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Shtirlitz [24]
3 years ago
8

Jed is an electrician. Jed and his wife are accrual basis taxpayers and file a joint return. Jed wired a new house for Alison an

d billed her $15,000. Alison paid Jed $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. Jed took Alison to Small Claims Court for the unpaid amount and was awarded a $2,000 judgement. Jed was able to collect the judgement but not the remainder of the bill from Alison. What amount of loss may Jed deduct in the current year?
a. $0
b. $3,000
c. $2,000
d. $5,000
e. None of these choices are correct.
Business
1 answer:
poizon [28]3 years ago
3 0

Answer:

b. $3,000

Explanation:

Jed was refused payment of $5000, the court awarded only $2000, rest $3000 is a loss for Jed. He can only deduct $3000 and not full $5000 as $2000 has been realized.

Therefore, The amount of loss may Jed deduct in the current year is $3,000.

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Strongheart Enterprises anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual
frozen [14]

Answer:

$6,400 U

Explanation:

With regards to the above information, we would calculate first the earned value.

Earned value

= Actual activity × Budgeted value

= $27,500 × 6

= $165,000

Now, we would compute the cost variance.

Cost variance

= Earned value - Actual blue

= $165,000 - $171,400

= $6,400 U

Here, we have an unfavourable variance because the company incurred more of the cost than it should be .

7 0
3 years ago
XOLO Ltd. sold its stocks at a face value of $10. The stocks presently have a market value of $45. The earning per share (EPS) i
miss Akunina [59]

Answer: C

Explanation:

dividing a company's current stock price by its earnings per share (EPS)

45/2.25=20

4 0
3 years ago
What is the range of useful life estimates that Tesla provides for office furniture, machinery and equipment in the 2013 10-K?a.
MAXImum [283]

Answer:

The correct answer is letter "B": 3 to 12 years.

Explanation:

American car maker Tesla, Inc. specializes in manufacturing electric-fueled autonomous driving vehicles. Founder and Chief Executive Officer (<em>CEO</em>) Elon Musk is also the chief engineer and designer for most revolutionary Tesla car models. When it comes to its 2013 10-K United States Securities and Exchange Commission form, Tesla submitted a <em>3 to 12 years estimated depreciation for office furniture, machinery and equipment, 3 years for computer equipment and software, </em>and <em>30 years for building and building improvements.</em>

3 0
3 years ago
Heavy Metal Corporation is expected to generate the following free cash flows over the next five​ years: LOADING.... ​Thereafter
Tatiana [17]

Answer:

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon in order to copy its contents into a spreadsheet.) 2 3 Year FCF (5 million) 53. 6 66.2 78. 6 4 75. 3 . 5 82.5 After that, the free cash flows are expected to grow at the industry average of 4.4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.6% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $288 million, and 42 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal The enterprise value will be $ million. (Round to two decimal places.) b. If Heavy Metal has no excess cash, debt of $288 million, and 42 million shares outstanding, estimate its share price. price. The stock price per share will be $ (Round to two decimal places.)

Explanation:

5 0
2 years ago
National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6
Temka [501]

Answer:

$8.78

Explanation:

National advertising made dividend payment of $0.75 per share

The dividend is expected to grow at a constant rate of 6.50%

= 6.50/100

= 0.065

The company beta is 1.85

The required return on the market is 10.50%

The risk free rate is 4.50%

The first step is to calculate the rate of return using the CAMP model

R = Risk free rate+beta(market return-risk free rate)

= 4.50%+1.85(10.50%-4.50%)

= 4.50%+1.85×6%

= 4.50%+11.1

= 15.6

Required rate of return= 15.6

Therefore the current stock price can be calculated as follows

Po= Do(1+g)/(r-g)

Where Do= 0.75, g= 0.065, r= 15.6

Po= 0.75(1+0.065)/(0.156-0.065)

Po= 0.75(1.065)/0.091

Po= 0.7987/0.091

Po= $8.78

Hence the company current stock price is $8.78

3 0
3 years ago
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