Answer:
The deductible expense = $570
Explanation:
First, the question is not complete, the complete question is as follows
Gwen, an independent consultant, traveled to New York City on a business trip. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area. Gwen's plane fare for the trip was $250. Meals cost $160 per day. Hotels and other incidental expenses amounted to $250 per day.Gwen was not reimbursed by her employer for any expenses. Her AGI for the year is $50,000 and she itemizes but has no other miscellaneous itemized deductions. Gwen may deduct (after limitations).
Solution
How much is the plane fare $250
How much was spent on means $640 (160 a day x 4 days)
Subtract: 50% of meal costs ($320) 0.5 x 640
Hotel Expense was $1,000 ($250 x 4 days)
The total is $1,570
Subtract 2% of the AGI <u> $1,000</u> (0.02 x 50,000)
The final deductible expense $570
This means the amount that Gwen can deduct from the expenses for the trip after the limitations as calculated above is $570
Answer:
WACC 13.85600%
Explanation:
First we calculate Eastern Pizza CAPM:
risk free = 0.08
market rate = 0.12
premium market = (market rate - risk free) 0.04
beta(non diversifiable risk) = 2
Ke 0.16000
Then we solve for WACC
Ke 0.16000
Equity weight 0.8
Kd 0.08
Debt Weight 0.2
t 0.34
WACC 13.85600%
The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.
Answer:
Fixed costs are those costs that do not vary with the level of production. While, variable cost are those costs that change with the level of production or per unit consumption.
(a) Repairs to a leaking roof- Fixed cost as it has nothing to do with the level of production.
(b) Cotton- Variable cost as it depends on the number of units produced.
(c) Food for the miller's cafeteria- Variable as it depends on production. The more you produce the more workers you need and thus more is the food requirement.
(d) Night security guard- Fixed cost as it does not change with the number of units produced by the textile mill.
(e) Electricity- Variable cost as it depends on the units of electricity consumed. The more you produce the more electricity will be consumed.
Answer:
c. $1.58.
Explanation:
The computation of the direct materials cost per equivalent unit is given below:
Equivalent units for material is
= 100% of 193,000 + 100% of 28,000
= 193,000 + 28,000
= 221,000
Equivalent cost for material is
= $94,100 + $254,800
= $348,900
So, the direct materials cost per equivalent unit is
= $348,900 ÷ 221,000
= $1.58
