Answer:
B) 2015
Explanation:
B) 2015
Octo and Samantha are related parties under the constructive ownership rules of Section 267. Octo may not take a deduction until Samantha recognizes the $5,000 in income.
Answer:
a -1. 48,572 units
a -2 2.56
Explanation:
Break even point is the level of activity where a firm neither makes a profit or loss.
Break Even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Sales per unit - Variable Cost per unit
= $38 - $24
= $14
Therefore,
Break Even point (units) = $680,000 ÷ $14
= 48,572 units
Degree of operating leverage = Contribution ÷ Earnings Before Interest and Tax
= 80,000 units × $14 ÷ (80,000 units × $14 - $680,000)
= $1,120,000 ÷ $440,000
= 2.56
Answer:
Jay Pembroke Company
Balance Sheet as of April 30
Assets:
Cash $12,950
Accounts Receivable 2,000
Office Supplies 4,600
Prepaid Insurance 1,200
Total assets $20,750
Liabilities:
Accounts Payable $300
Jay Pembroke, Capital 20,450
Total liabilities + equity $20,750
Explanation:
a) Data and Calculations:
Assets:
Cash $12,950
Accounts Receivable 2,000
Office Supplies 4,600
Prepaid Insurance 1,200
Liabilities:
Accounts Payable $300
Statement of Owner's Equity:
Jay Pembroke, Capital 18,000
Net income 2,550
Jay Pembroke, Drawing (100)
Ending Capital 20,450
Income Statement for the month ended April 30
Service Fees 3,300
Rent Expense 750
Net income 2,550
Answer:
B. $35,612
Explanation:
The net income which shall be earned by the Holly Farms shall be determined through following mentioned formula:
Sales $581,600
Costs ($479,700)
Depreciation expense ($32,100)
Interest expense ($8,400)
Income before tax $61,400
[email protected]% ($25,788)
Net income for year $35,612
So based on the above discussion, the answer is B. $35,612