Answer:
$288 (F)
Explanation:
In order to calculate activity variance we subtract actual results from the flexible budget. Moreover, the flexible budget is determined by taken into account both fixed and variable expense of the activity. This is shown below:
Flexible Budget of Selling and Administrative Expense = 25,900 + (2.1 x 5,980) = $38,458
Variance = 38,170 - 38,458 = $288 (F)
Because the actual expense is less than the flexible budget, the variance is favorable (F).
Note: Variable flexible budget is calculated by multiplying the variable rate with the actual units produced.
Answer:
The correct response will be:
(a) 15%, 21%
(b) 15%
Explanation:
(a)
Otter Company would be entitled to subtract a dividend received equal to 50% including its dividends it obtained. For the continued membership including its dividends, these will pay an income tax of 21 percent.
- The organization would then expect to be paid 21 percent tax mostly on the remaining part including its dividend while the federal income rate that is applied to it would be 21 percent.
- A business but with much less than 20 percent investment is given just 50 percent including its allowance as well as the additional dividend revenue is exempted from taxes of 21 percent.
(b)
Gerald would have all the split ones in sales. At either the 15 percent rate, he is going to pay tax.
Answer:
Objective Task Method
Explanation:
According to my research on different business strategies, I can say that based on the information provided within the question Nathan is using an Objective Task Method. This is a financial business strategy in which a company/business sets aside a specific set amount of money to use as it's marketing budget based on the objectives they are trying to accomplish. Which is exactly what Nathan is doing in this scenario.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
a.
Explanation:
Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.
Examples: Revenue earned, expenses incurred etc.
There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.
The two methods of presenting cash flow statement are:
- Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.
- Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.
Depreciation expense is a non-cash operating expense. Thus, it is added back to the net income to derive net cash inflow from operating activities section of the cash flow statement.
Answer:
If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.
Joel is also able to deduct depreciation expenses, real estate taxes, and other costs from his passive income.
As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.
