The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.
Answer:
12098
13127
Explanation:
Net income = revenue - total cost
revenue = price x unit sold
total cost = variable cost + fixed cost
variable cost = variable cost per unit x unit sold
unit sold is unknown, so it would be represented with a
$152,600 = $153a - ($93a + $573,300)
$152,600 = $153a - $93a - $573,300
Collect like terms and solve for a
a = 12,098
b. Net income in 2017 = $61,700 + $152,600 = 214,300
214,300 = $153a - $93a - $573,300
Collect like terms and solve for a
a = 13127
Answer:
The Purchased 5,000 shares at $95,000 would be considered as <u>Treasury stock</u> and it will be treated as <u>Asset</u>
Explanation:
Journal Entry Debit Credit
Treasury stock $95,000
Cash $95,000
The 5,000 shares should be considered as authorized , issued and outstanding shares although they are deducted from paid in capital under stockholders equity section.
Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
Answer:
$15,708
Explanation:
Calculation to determine What is the amount of the aftertax lease payment
Using this formula
Aftertax lease payment=Leased equipment(1-Tax rate)
Let plug in the formula
Aftertax lease payment = $23,800 (1 - 0.34)
Aftertax lease payment=$23,800(.66)
Aftertax lease payment = $15,708
Therefore the amount of the aftertax lease payment is $15,708
