Answer:
The correct answer is minimize.
Explanation:
Tax liability is what the taxpayer or corporation owes to a government entity in charge of levy and collect taxes because of the profits it has generated.
This person can deduct their taxes by planning them correctly.
Doing good planning can minimize taxes in some of the following ways:
- Contributing to charity
- Making contributions to retirement accounts
- Having medical health insurance
- Saving for college
Answer:
3.72 years
Explanation:
The cash payback period of this investment is the initial investment of $142,104 divided by net increase in cash in cash flow per period.
Cash Payback Period = Initial Investment
/Net increase Cash Flow per Period
Net increase in cash flow per period=$80,000-$41,800=$38,200
Cash payback period=$142,104/$38,200=3.72 years
It would take 3 years 9 months(0.72*12 months) for the project to pay back its initial investment of $142,104
Answer:
The advantage is more locally laws like streat lights and roads but the disadvantage is budget
Answer:
$500 short-term capital gain
Explanation:
Henrietta's gain = selling price - stock's basis = $13,500 - $13,000 = $500
Since Henrietta received the stocks on June 1, 2015, and sold them on January 1, 2016, only 7 months had passed, therefore, this transaction would be considered a short term capital gain.
When a gift is sold (in this case the stocks), a taxpayer can use the basis for computing gains. If the stocks were sold at a loss, Henrietta should use the lower value (at the moment of the gift) to determine her loss.
The correct answer is choice b.
Revenue is normally recognized when the services are rendered. At this point in the accounting cycle you would make an entry to record the sale. It would be a credit to Sales/Revenue and a debit to either cash or accounts receivable.