Which type of business is owned by an individual?

At the beginning of the current year, Sandy Brewer had a zero basis in her 38 shares of stock in Lindlee, an S corporation, a ze

Alona [7]

Answer:

As in her worthless note,Sandy has a zero adjusted basis. Her bad debt deduction is Nil according to Section 166 (b).

Section 166(g)(1) states that her capital loss realized on the deemed sale of this stoke is also nil because of zero adjusted basis in her worthless stock.

According to Reg. Sec.1.1366-2(a)(5) if all of her stock is disposed by an S corporation shareholder and loss carryforward attributable to the Section 1366 (d) basis. Limitaitons are permanently disaalowed.

Hence, her $7,400 ordinary loss carryforward can never be deducted by Sandy.

Sandy has no 2012 tax consequences from worthlessness of her Lindlee investments

7 0

3 years ago

Read 2 more answers

What is the difference between marginal revenue and total revenue ?

Daniel [21]

Answer:

Explanation:

Total revenue is the amount of money you got for selling all of your products/services.

Marginal revenue is the amount of money you got for selling the last unit of goods or services.

6 0

3 years ago

On January 1, 2021, the Allegheny Corporation purchased equipment for $295,000. The estimated service life of the equipment is 1

svetlana [45]

Answer:

a.

2021 = $50,000

2022 = $45,000

b.

2021 = $275,000

2022 = $0

Explanation:

a. Sum-of-the-years'-digits.

Sum of digits for the 10 years will be :

Year 1 = 10

Year 2 = 9

Year 3 = 8

Year 4 = 7

Year 5 = 6

Year 6 = 5

Year 7 = 4

Year 8 = 3

Year 9 = 2

Year 10 = 1

Sum of Digits = 55

therefore,

2021 depreciation = 10/55 x ($295,000 - $20,000)

= $50,000

2022 depreciation = 9/55 x ($295,000 - $20,000)

= $45,000

b. One hundred fifty percent declining balance.

2021 depreciation = 150% x ($295,000 - $20,000)

= $412,500

<em>Can not be charged above book value of $275,000</em>

2022 depreciation = 150% x ($295,000 - $20,000- $412,500)

= $0

6 0

3 years ago

g Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an orde

Karolina [17]

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the stores leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Columbian mild coffee beans, which are purchased from a distributor from New York City. Because Romans purchases large quantities the coffee beans may be purchased om an as need basis for the price of 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Columbian Mild The composition of each coffee blend are as follows:

Bean Regular DeCaf Blend

Brazilian Natural 75% 40%

Columbian Mild 25% 60%

Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit.

Answer:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

Explanation:

From the given information:

The total revenue can be illustrated as :

Total revenue = 3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD

On the other hand; the total cost of the beans is:

= 1.1 (0.47 BR + 0.47 BD + 0.62 CR + 0.62 CD)

= 0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD

Also; The total production cost is :

= 0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD

The total profit = Total revenue - Total Cost of Beans - Total Production Cost

The total profit = $\left[\begin{array}{}3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD\\- (0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD)\\-(0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD)\end{array}\right]$

The total profit = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD

Therefore the linear programming model represents the Objective function of the total profit as:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

3 0

3 years ago

The correct form(s) of affirmation for Full Verbatim is (are):

____ [38]

Answer:

b) Mm-hmm, uh-uh, uh-huh.

Explanation:

Full verbatim can be regarded as a transcript which encompass absolutely everything that is been said by the speaker, or just exactly it has been said by the speakers. In this case all the "ums"as well as "uhs" and grammatical/ vocabulary mistakes are included. Therefore, correct form(s) of affirmation for Full Verbatim is here is Mm-hmm, uh-uh, uh-huh.

6 0

3 years ago