1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
allochka39001 [22]
3 years ago
15

In March of the current year, Marcus began investigating the possibility of opening a specialty clothing store. From March throu

gh June, he spent $2,300 on a market survey, $2,700 in consulting fees to find the best location and $3,600 in professional fees setting up an accounting and inventory system. Although he had never run his own business before, on August 1 he opened his doors for business. What is the maximum amount of deduction for the current year attributable to these expenditures?
Business
1 answer:
erik [133]3 years ago
7 0

Answer:

Total deduction attributable to the current year = $5,000 + $100= $5,100

Explanation:

First, the multiple choices for the question

a. $8,600

b. $5,000

c. $5,100

d. $5,240

e. 0

Solution

First, we determine the total expenditure for the start-up as follows

Market survey + Consulting fees + Professional Fees

= $2,300 + $2,700 + $3,600 = $8,600

However, we are also aware that only $5,000 can be out rightly deducted in the first year of business, while the remaining ($8,600-$5,000) = $3,600 is to be deducted over a period of 180 months

Deduction over 180 months = $3,600 / 180 months = $20 per month

Finally, since the business started August 1st, it means the business ran form August to December (5 months) for the current year.

Hence, the additional deduction for the year = $20 x 5 = $100

Total deduction attributable to the current year = $5,000 + $100= $5,100

You might be interested in
Economist Brown believes that changes in aggregate demand affect only the price level, and economist Black believes that changes
n200080 [17]

Answer:

Economist Brown : Perfectly Inelastic (Vertical) Aggregate Supply

Economist Black : Perfectly Elastic (Horizontal) Aggregate Supply

Explanation:

Economy is at equilibrium where : Aggregate Demand = Aggregate Supply.

Aggregate Demand is downward sloping curve, as aggregate demand is inversely related with price. Increase in AD shifts the AD curve rightwards.

Aggregate Supply is usually upward sloping curve, as it is directly related to price. However, as per given special cases by Economists Black & Brown, it is as undermentioned :

  • Black : AD increase (rightwards shift) increases only price if - Aggregate Supply is perfectly inelastic i.e non respondent to price & AS curve is vertical.

Real GDP is the total value of goods & services produced by an economy, valued at constant base prices. Increase in real GDP implies increase in production quantity.

  • Brown : AD increase (rightwards shift) increases only Real GDP (quantity) if - Aggregate Supply is perfectly elastic (infinitely respondent to price, so prices constant) & AS curve is horizontal.
4 0
2 years ago
. What statement is relevant to why business marketers consider the buying center model challenging? A large number of participa
Ierofanga [76]

<u>Answer:</u>

<em>It requires marketers to learn about all of the participants and their relative influence on the decision. </em>

<u>Explanation:</u>

Decision making can be performed by individuals or groups and includes employees as well as operational, middle, and senior managers. There are four stages in decision making: intelligence, design, choice, and implementation.

However, information systems are less successful at supporting unstructured decisions..  It requires marketers to learn about all of the participants and their relative influence on the decision.

7 0
3 years ago
Which of the following investments has a higher present​ value, assuming the same​ (strictly positive) interest rate applies to
Sladkaya [172]

Answer:

Investment Y has a greater present value

Explanation:

present value is the sum of disoucnted cashflows

i would choose an interest rate of 10% to calcuate the present values

for investment X

cash flow in year 1 = $5,000

cash flow in year 2 = $7,000

cash flow in year 3 = $9,000

cash flow in year 4 = $11,000

I = 10%

PV = $24,605.56

or investment Y

cash flow in year 1 = $11,000

cash flow in year 2 =$9,000

cash flow in year 3 = $7,000

cash flow in year 4 = $5,000

I = 10%

PV = $26,112.29

Investment Y has a greater present value

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

7 0
3 years ago
The crowding-out effect implies that restrictive fiscal policy will increase aggregate demand and employment. lead to a signific
vladimir1956 [14]

The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.

<u>Option: D</u>

<u>Explanation:</u>

The crowding out effect is the circumstances where greater interest rates consequences gives output of a decline in private investment expenditure so as to dampen the initial rise in overall investment expenditure. Authorities often embraces a restrictive fiscal-policy approach and raises spending to stimulate economic activity. This contributes to interest-rate rises. Higher interest rates have a impact on private investment choices. A high magnitude of the crowding-out impact can also result in lower economic revenue.

4 0
3 years ago
Action learning uses challenging, structured outdoor activities, which include difficult sports.A. TrueB. false
mixas84 [53]

Answer: The answer is True.

Explanation: Action learning uses challenging, structured outdoor activities, which may include difficult sports such as dog-sledding or mountain climbing. ... Employees are most likely to learn when the training is linked to their current job experiences and tasks.

6 0
3 years ago
Other questions:
  • The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would
    10·1 answer
  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,0
    5·1 answer
  • When projecting the balance sheet, what happens when the initial balance sheet yields estimated total assets greater than the su
    10·1 answer
  • A(n) bond is a long-term contract under which a borrower agrees to make payments of interest and principal, on specific dates, t
    9·2 answers
  • Which of the following is an example of upward communication in an organization? a. Three administrative assistants meet to disc
    15·1 answer
  • Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, ar
    11·1 answer
  • What most likely resulted after the U.S. Poured resources into stopping the spread of communism after World War II? * 1 point U.
    14·1 answer
  • Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college
    9·1 answer
  • A person is a professional truck driver and a car salesperson. Which action
    8·2 answers
  • The difference between accounting exposure and translation exposure is that:______
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!