Answer:
Net income $1,265
Explanation:
The computation of the net income or net loss is shown below:
Revenues
Cash revenues $2,900
Credit revenue $2,050
Total revenues (a) $4,950
Less:
Expenses :
Rent ($1,275)
Telephone ($280)
Salaries ($1,750)
Office cleaning service ($380)
Total expenses (b) ($3,685)
Net income $1,265 (a - b)
Answer:
$15,000
Explanation:
The general business credit is given by the taxpayer’s net income tax reduced by the greater of either The tentative minimum tax or 25 percent of net regular tax liability that exceeds $25,000
Tax payers net income tax = $190,000
Tentative minimum tax = $175,000
(25% × (185,000 - 25,000)) = $40,000
Therefore $175,000> $40,000
The credit = $190,000 - $175,000 =$15,000
Answer:
Liability
Explanation:
Assets are resources controlled by an entity as a result of a past event, for which future economic benefits flow to the entity.
Liabilities on the other hand are current obligations of an entity as a result of a past event for which future economic benefits are expected to flow our of the entity.
Therefore, when a company has a current obligation to make a future payment to their supplier due to a shipment of supplies that were received last week, the company would record this transaction with an increase to an asset account ( inventory or fixed asset for the item received) and a liability account due to the obligation to make future payments.
Answer:
The insurance company, because the applicant was covered by the policy.
Explanation:
Once a conditional receipt is given, the applicant is immediately covered. The issuing of a conditional receipt provides immediate coverage starting from the date the application was made and the premium was paid. Only if the applicant didn't pass the underwriting requirements for the policy, would the policy not be in effect. For example, if the applicant must pass a medical examination, the coverage begins only after the applicant passes the medical examination.
Therefore the insurance company must provide the reasons why they denied the claim.
Answer:
The missing information in the question is;
The variable manufacturing cost per unit is $22 (including direct material,labor and variable overheads)
Explanation:
Incremental sales 2,100*25 $52,500
Variable manufacturing cost 2100*22 ($46,200)
Stamping Machine for this order ($4,000)
Incremental income from accepting the order $2,300