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Pavlova-9 [17]
3 years ago
5

Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $250 at the slots and $1.200 at poker. Also this year

, Rhett made several trips to the racetrack, but he lost $700 on his various wagers. What amount must Rhett include in his gross income? Multiple Choice
a. 08 Zero - gambling winnings are not included in gross income
b. $1,450
c. $250
d. $750
d. $1,200
Business
1 answer:
kogti [31]3 years ago
3 0

Answer:

b. $1,450

Explanation:

Data provided as per the question

Winnings in slot = $250

Winnings in poker = $1,200

The computation of gross income is shown below:-

Total amount in Gross Income = Winnings in slot +  Winnings in poker

= $250 + $1,200

= $1,450

Therefore for computing the total amount in gross income we simply add winning in slot with winning in poker.

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8 0
3 years ago
What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to th
densk [106]

Answer:

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b) IRR = 27.71%

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d) Equivalent annual cost = -$4,815.84

e) Equivalent annual saving = $12,454.79

Explanation:

The first part of the question is missing, so I looked it up:

"A new furnace for your small factory will cost $41,000 to install and will require ongoing maintenance expenditures of $3,500 a year. But it is far more fuel efficient than your old furnace and will reduce your consumption of heating oil by 3,800 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 10%."

since the question is a little bit long, I prepared an excel spreadsheet:

Download pdf
3 0
3 years ago
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