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Leona [35]
2 years ago
13

Exercise 7-29 (LO. 6) Tim, a single taxpayer, operates a business as a single-member LLC. In 2018, his LLC reports business inco

me of $225,000 and business deductions of $575,000, resulting in a loss of $350,000. What are the implications of this business loss? Tim has an excess business loss of $ . Can this business loss be used to offset other income that Tim reports? If so, how much? If not, what happens to the loss? Tim may use $ of the $350,000 LLC business loss, to offset . The excess business loss is .
Business
1 answer:
Taya2010 [7]2 years ago
4 0

Answer:

From 2018, there is a threshold limit of $250,000 defined by IRS for single:

(a) Tim has an excess business loss:

= Business loss - Threshold

= $350,000 - $250,000

= $100,000

(b) Tim may use $250,000 of the $350,000 LLC business loss to offset non business income.

The excess business loss is treated as the portion of the Tim's NOL carry forward.

Excess business loss of $100,000 will be treated as the NOL carryforward to subsequent years.

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An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from amo
xenn [34]

Answer:

True, an ethical issue is an identifiable problem/ situation or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.

Explanation:

Ethical issues arise when a given decision scenario or activity creates a conflict with a society's moral principles. Both businesses and individuals can be involved in these conflicts and sometimes these conflicts can be legally dangerous as some alternative to solve them might breach a particular law.

4 0
3 years ago
For most companies, the web ______ the threat that new competitors will enter the market by ______ traditional barriers to entry
Andrei [34K]

Answer: b. Increases, decreasing

Explanation: For most companies, the web increases the threat that new competitors will enter the market by decreasing traditional barriers to entry. Traditional barriers to entry include

a. Economies of scale

b. Product differentiation

c. Capital requirements

d. Switching costs

e. Access to distribution channels

f. Cost disadvantages

g. Government policy

thus, by reducing some of these barriers to entry the Web increases the threat of new competition.

7 0
3 years ago
Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,0
topjm [15]

Answer:

$2,500

Explanation:

Opening balance                             $12,000

Cash receipts                                   $30,000

Cash disbursement                        ($34,500)

Closing balance                                $7,500

Minimum cash balance                    $10,000

Borrowing amount(1$0,000-$7,500)     $2,500

To maintain $10,000 cash balance western company need to borrow $2,500($10,000-$7500)

7 0
3 years ago
A service animal can. A) cat. B) Snake C) Miniature horse D) Kangaroo true or false
Taya2010 [7]
False, because you can't really use those animals for a service.
5 0
3 years ago
Read 2 more answers
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
Elza [17]

Answer:

See explaination and attachment

Explanation:

Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.

Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

See attachment for the step by step solution of the given problem.

8 0
3 years ago
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