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slega [8]
3 years ago
14

Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2018. Blue had the

following expenses in connection with the project: 2018 2019 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising –0– 20,000 Equipment depreciation 15,000 14,000 Cost of market survey 8,000 –0– The new product will be introduced for sale beginning in July 2020. Determine the amount of the deduction for research and experimental expenditures for 2018, 2019, and 2020 if: Blue Corporation elects to expense the research and experimental expenditures. Blue Corporation elects to amortize the research and experimental expenditures over 60 months.
Business
1 answer:
umka21 [38]3 years ago
7 0

Answer:

There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.

Explanation:

total available amount of deduction for research and experimental expenditures is:

2018 - $500,000 + 90,000 + 8,000 + 6,000 + 15,000  

   = $619,000

2019- $600,000 + 70,000  + 11,000  + 8,000  + 14,000

          = $703,000

2020 - $0

Amortized value for research and experimental expenditures

= ($619,000+703,000)/60

= $22,033 per month

Amortized value for research and experimental expenditures for 2018

= $0

Amortized value for research and experimental expenditures for 2019

= $0

Amortized value for research and experimental expenditures for 2020 (from july to dec => 6 months)

= $22.033*6

= $132,198

Therefore, There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.

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The_______of the strategic sourcing process, which is sometimes kicked off in response to an entirely new need within an organiz
VladimirAG [237]

The supply chain Management of the strategic sourcing process is sometimes kicked off in response to an entirely new need within an organization.

Explanation:

The main purpose of strategic sourcing is to save money, acquisition process, supplier performance, and minimizing risk.

Based on the seven steps the strategic source processing is performed. They are profile the category means that it defines the categories and commodities in it.

The second step is supply market analysis describes about the cost components of the products or service. Develop the strategy is the next step in which decides where to buy while minimizing risk and cost and how to develop sourcing strategy. The next step is selecting source process which is used as a request for proposal process.

Then negotiate and selection suppliers is used to conduct multiple rounds of negotiation to get a shortlist.

The sixth step is implement and integrate are used for implementation process. The final step is benchmark and track results is the key element for sourcing process.

5 0
2 years ago
You have three separate accounts with your bank that you can manipulate with online banking. Account "A" is a checking account w
miss Akunina [59]

Answer:

A) $10,195

Explanation:

This can be calculated as follows:

Amount in Account "B" = $12,850.25

Remaining balance after moving $2,500 from Account "B" to account "A" = Amount in Account "B" - $2,500 = $12,850.25 - $2,500 = $10,350.25

Amount moved from account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" * 1.5% = $10,350.25 * 1.5% = $155.25

Balance after moving 1.5% of the remaining balance in account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" - Amount moved from account "B" to account "C" = $10,350.25 - $155.25 = $10,195

Therefore, the correct option is A) $10,195.

6 0
3 years ago
Look at the picture, which one is the correct answer?
patriot [66]
Probably production function
6 0
2 years ago
Read 2 more answers
Logan, a 50 percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with
Musya8 [376]

Answer:

$9,840

Explanation:

In this question, we have to take the difference between the payment for S corporation and the C corporation

If Military Gear Inc is a C corporation, then the payment would be

= Ordinary income × marginal tax rate

= $84,000 × 24%

= $20,160

And, if Military Gear Inc is a S corporation, then the payment would be

= (Ordinary income - net effect) ×  marginal tax rate

= ($84,000 - $41,000) × 24%

= $43,000 × 24%

= $10,320

The net effect would be

= $159,000 - $118,000

= $41,000

The net payment would be

= $20,160 - $10,320

= $9,840

4 0
3 years ago
Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. A
Ierofanga [76]

Answer: I'll need $2,14,309.02 in my savings account in order to make tuition payments over the next four years.

We follow these steps in order to arrive at the answer:

In this question, we need to take into account that we need to pay 35% as taxes on interest earned.

So even though the interest rate on the deposit is 5%, only 1 - 35% = 65% will be available for use.

Hence, effectively the deposit will only earn 0.05*0.65 = 0.0325\\ or 3.25% interest after taxes.

We'll compute the the Present Value of the annuity of 58,000 for four years at 3.25% interest in order to determine the amount that is needed today.

The Present Value of an Annuity formula is

\mathbf{PV_{Annuity}= PMT\left ( \frac{1 -(1+r)^{-n}}{r} \right )}

Substituting the values in the equation above we get,

PV_{Annuity}= 58,000\left (\frac{1 -(1.0325)^{-4}}{0.0325} \right )

PV_{Annuity}= 58,000\left (\frac{ 0.12008695 }{0.0325} \right )

\mathbf{PV_{Annuity}= 58,000 * 3.69 = 2,14,309.02}

3 0
3 years ago
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