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Zolol [24]
3 years ago
6

Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500

in legal fees for drafting the LLC’s operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. How much can Candlewood deduct as organizational expenses? As startup expenses?
Business
1 answer:
Harlamova29_29 [7]3 years ago
6 0

Answer:

Organization expenses    $5,100

Startup expenses     $1,700

Explanation:

Calculation of organisation expenses and startup expenses

Particulars    Calculations     Amount

Actual expense                      $54,500

Reduced for startup upto         $50,000     $5,000

1. LLC may deduct    ($9,500 - $5,000)*4/180  $100

Organization expenses   ($5000 + $100)  $5,100

2. Deduction for startup   ($5,000 - $4,500)   $500

Write off during the year  $54,000*4/180   $1,200

Startup expenses          $1,700

NB: Startup expenses are all expenses incurred for the start-up of the business are known as the startup expense which is related to the existing expense of business and will be approved after the firm.

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The cost of sensors used in making digital cameras falls, while a successful ad campaign makes digital cameras more fashionable.
Wewaii [24]

Answer: Indeterminate; Increases

Explanation:

We know that sensors are used as an input in the production of digital cameras. So, if the price of sensors falls, as a result cost of production of digital cameras also falls. This will increase the supply of cameras and shift the supply curve rightwards.

At the same time successful ad campaign will make the digital cameras more fashionable and increases the demand for digital cameras. This will also shift the demand curve rightwards.

Hence, there is an increase in the equilibrium quantity but effect on equilibrium price is indeterminate because it will be depend upon the magnitude of the shift of demand and supply curve.

7 0
3 years ago
The following types of contracts should be in writing: Contracts involving interests in land. Contracts that cannot, by their te
puteri [66]

Answer:

Contracts required in writing

Explanation:

Contracts that required to be in writing to be enforceable. These contracts are never orally agreed and there is no value of such oral contracts. The contact and promise made by executor to pay debt, promises in consideration of marriage, Sale of goods priced $500 or more should be in writing.

8 0
3 years ago
Six months ago, Benders Gym repurchased $140,000 of its common stock. The company pays regular dividends totaling $18,500 per qu
Studentka2010 [4]

Answer:

$168,400

Explanation:

Benders Gym repurchased their common stock at the rate of $140,000

Benders Gym pays a regular dividend of $18,500 four times in a year

For a period of one year 1,200 shares was issued at the rate of $38 per share

Therefore, the amount of cash flow to the stockholders for the past one year can be calculated as follows

=[18,500×4]-[1,200×38-(140,000)]

= 74,000-[45,600-140,000]

= 74,000-[-94,000]

= 74,000+94,000

= $168,400

Hence the amount of cash flow to the stock holders for a period of one year is $168,400

7 0
3 years ago
tems is a​ start-up company that makes connectors for​ high-speed Internet connections. BotNet Systems has budgeted three hours
gtnhenbr [62]

Answer:

-$153.6 Unfavorable

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As per the given question the solution of direct labor cost variance for​ August is provided below:-

Direct labor cost variance for​ August = (Standard rate - Actual rate) × Actual hour

= ($13 per hour - $13.80 per hour) × 192 hours

= -$0.8 × 192 hours

= -$153.6 Unfavorable

Here, the actual rate is higher than standard rate so the amount will come into unfavorable and to reach out the direct labor cost variance for august we put the value into formula.

5 0
3 years ago
An order taker at a producer of bed linens receives an order from a retailer for
Anna007 [38]

Answer: The retailer

Explanation:Ape

5 0
3 years ago
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