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
An adequate supply of complements to a product results in: a. more customers opting for the product. b. higher switching costs.
Rama09 [41]

Answer: a. more customers opting for the product

Explanation: It is important for a companies and businesses to ensure that in addition to the product they deal in itself, there is an adequate supply of complements. Complements to a product are products whose use is related to the use of an associated product, as such, its appeal increases with increasing use or popularity of its complement. An adequate supply of complements to a product results in more customers opting for the product.

8 0
3 years ago
Ollie leased a building in old town. ollie installed a washer and dryer unit and a new furnace in the basement of the building w
HACTEHA [7]

I believe the answer is: The furnace is a fixture, but the washer and dryer are not.

Fixtures refers to a set of objects whose position is completely fixed and could not be removed unless by destroying a part of the building.  Washer and Dryer are not fixed to any wall of the building and can be moved simply by the cooperation of two people or with the helps of stroll.

8 0
4 years ago
In a newsvendor model where the demand has normal distribution, if Co < Cu, i.e., the overage cost is lower than the underage
mars1129 [50]

Answer:

maximum

Explanation:

The newsvendor model may be defined as the mathematical model which is characterize by the fixed prices as well as the uncertain demand for the perishable products. This model is mainly used to determine the optimal inventory level.

According to the newsvendor model, there is only one opportunity to order. The cost of buying large quantities of the products may result in disposing them or selling the products at a lower price.

The optimal ordering quantity is maximum when the underage cost is higher than the overage cost.

8 0
2 years ago
the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac
Sergeu [11.5K]

Answer:

Note: The full question is attached as picture below

                               (a)                   (b)                   (c)  

                                In                                      Larger  

                            Balance      Difference       column

1.                               No               $725             Debit  

2.                             Yes                 NA                NA  

3.                              Yes                 NA                NA  

4.                               No               $225            Credit  

5.                              Yes               $684               NA  

6.                               No                $45             Credit

7 0
3 years ago
A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital wa
Angelina_Jolie [31]

Answer:

E. $63,401

Explanation:

gain on disposal = salvage value of plant - book value on date of sale

                            = $5,790 - $4,820

                            = $970

tax on disposal = $970*35%

                          = $339.50

after tax salvage value = $5,790 - $339.50

                                       = $5,450.50

total cash flow in 4 years

= annual operating cash flow + net working capital + after tax salvage value

= $53,500 + $4,450 + $5,450.50

= $63,401

Therefore, The Year 4 cash flow is $63,401.

3 0
3 years ago
Other questions:
  • Steinberg Corporation and Dietrich Corporation are identical companies except that Dietrich is more levered. Both companies will
    5·1 answer
  • Durable goods and non-durable goods comprise approximately ________ of the supply side of the gdp.
    5·1 answer
  • If this economy devotes one-half of its available resources to the production of blankets and the other half to the production o
    6·1 answer
  • Which of the following promises does NOT have to be evidenced by a writing in order to be enforceable? a. Jones's agreement with
    12·1 answer
  • In a market system, how are the terms of exchange established?
    11·1 answer
  • Suppose an inventor is interested in the proportion of local consumers who would be interested in purchasing her new product. If
    15·1 answer
  • Which of the following is a downside of a newspaper ad?
    10·2 answers
  • Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several cre
    6·2 answers
  • 1988
    13·1 answer
  • A hurricane hits the coast of the United States, destroying oyster farms. Afterward,
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!