Answer:
The correct option is B
Explanation:
According to income tax laws, an individual will pay mess capital gains tax when his basis in an asset is higher. From the example, John has a personal residence and to increase his basis, he needs to think of what to add to the residence such that the selling price would increase and thus capital gain tax will reduce. From the option, the best and likely thing that would increase the basis of his asset (the house) and lead to an increase selling price is adding a new garage.
This is the process! have a good day!
Matches is the correct term
Answer:
<h2>
a. Traditional Cost</h2>
Product 540X
= Revenue - Cost
= 200,000 - 53,000
=$147,000
Product 137Y
= 162,000 - 48,000
= $114,000
Product 249S
= 92,000 - 25,000
= $67,000
<h2>
B. ABC Costing</h2>
Product 540X
= Revenue - Cost
= 200,000 - 47,100
=$152,900
Product 137Y
= 162,000 - 29,000
= $133,000
Product 249S
= 92,000 - 49,900
= $42,100
c.
Difference in Income for 540X
= 4.01%
Difference in Income for 137Y
= 16.67%
Difference in Income for 249S
= -37.16%
Calculation of Cost of Goods Sold for Versaille company:
It is given that Versaille Company has the cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000. The Cost of Goods Sold can be calculated using the following formula;
Cost of Goods Sold = Cost of goods manufactured + beginning finished goods inventory - ending finished goods inventory
= 325,000+150,000-175,000
= $300,000
Hence, the cost of goods sold for Versaille company is <u>$300,000</u>
