The first Year of your business’s operations
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.
Answer: The correct answer is " a. $92,000.".
Explanation: The explicit costs are observable, that is, those that we can easily take into account and decrease our operating result (salaries paid to employees, material costs, taxes, etc.)
So her total explicit cost were: $12 000 + $65 000 + $15 000 = $92 000.
Answer:
Quantity of beef demanded will decrease by 12%
Explanation:
Data provided in the question:
Price elasticity of demand for beef, Ed = 0.60
Increase in the price of beef = 20%
Now,
Price elasticity of demand for beef,
Ed = [ Percentage change in Quantity ] ÷ [ Percentage change in price ]
or
0.60 = [ Percentage change in Quantity ] ÷ 20%
or
Percentage change in Quantity = 0.60 × 20%
or
Percentage change in Quantity = 12%
Also,
Price and Quantity are inversely proportional
Hence,
With the increase in price, the quantity will decrease
Therefore,
Quantity of beef demanded will decrease by 12%
Answer:
Basic EPS=$1.08
Explanation:
Basic EPS= Net income after tax-preferred shares' dividend/Weighted average of outstanding shares
Net income after tax=$360,000*.7=$252,000
Dividend to preference shareholders=20,000*1.8=$36,000
Weighted average shares outstanding=200,000
Basic EPS=($252,000-$36,000)/200,000
Basic EPS=$1.08
