It is log-linear which is the best fit to the data?
Answer:
Using Indirect Method
1. Cashflow from operating activities $
Net income 26,000
Add: Depreciation 35,000
Cashflow from operating activities 61,000
2. Chrisman has generated sufficient cashflow from operating activities to pay for its investing activities.
Explanation:
Cashflow from operating activities equals net income plus adjustment for items not involving movement of cash such as depreciation.
Answer:
a). $1000 should be included in his gross income.
b) The full amount of $1000 should be included in his gross income as his bonus is due.
c) The full amount of the bonus is to be included.
d) The bonus must be included still.
Explanation:
a). The $1000 amount is due to him already accrued and gross income includes accruals.
b) The bonus is for the year ending 31 december so it should be included.
c) The bonus is an accrual to him for the year.
d) definition of gross income includes all accruals to a taxpayer and this is a bonus for the current year.
Answer:
$340,000
Explanation:
A sunk cost is a cost that has already been incurred and cannot be affected by any decision that someone makes. E.g. once you pay an expense like rent, the cost will not be recovered or altered by any decision that you make. Sunk costs is simply money that has been spent and cannot be recovered.