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3 years ago

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Business

1 answer:

Butoxors [25]3 years ago

5 0

Answer:

Part(A):

Total expenses in connection with condo:

= 2000 + 6500 + 2000 + 1400 + 2500 + 14500

= $28,900

Assuming Alexa receives $20,000 inn gross rental receipts, she will incur losses = 20000 -28,900 = (8,900)

As Alexa's AGI from all sources other than the rental property($200,000) is higher than $150,000, she will not be able to deduct any amount of loss against her active income.

Therefore the loss is not deductible and rental activity has no effect on her AGI.

Part(B):

Assuming that Alexa’s AGI from other sources is $90,000.

Since her AGI is less $100,000, she will be able to deduct loss of $8,900

Therefore, rental activity loss will reduce Alexa's AGI to = 90,000 - 8.900 = 81,100

The rental activity loss will reduce her AGI by $8,900 and her AGI would be 81,100.

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Suppose you purchase a $5,000 bond that pays 7% interest annually and matures in five years. If the inflation rate during the ne

galina1969 [7]

Answer:

2.88%

Explanation:

Use the following formula to calculate the real rate of return

Real rate of return = $\frac{( 1 + Nominal interest rate )}{( 1 + inflation rate)} -1$

Where

Nominal Interest rate = 7% = 0.07

Inflation rate = 4% = 0.04

Placing values in the formula

Real rate of return = $\frac{( 1 + 0.07 )}{( 1 + 0.04)} -1$

Real rate of return = $\frac{1.07}{1.04} -1$

Real rate of return = 1.0288 - 1

Real rate of return = 0.0288

Real rate of return = 2.88%

8 0

3 years ago

If average product is increasing, then marginal product Select one: a. must be greater than average product. b. must be less tha

netineya [11]

Answer: Option (a) is correct.

Explanation:

Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.

Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.

Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.

The relationship between marginal product and average product is explained by three phases:

(1) Average product is rising,

Marginal product is greater than the average product.

(2) Average product is maximum,

Marginal product is equal to average product.

(3) Average product is falling because of diminishing marginal utility,

Marginal product is less than the average product.

4 0

3 years ago

The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military

kap26 [50]

Answer:

A. Multifactor productivity

Original Value of output 2500 un. x $200/un. = $500,000 Value of input 2500 un x $120/un. = $300,000 Multi-factor productivity $500,000/$300,000 = 1.67 Overtime Value of output 4000 un. x $200/un. = $800,000 Value of input 4000 un. x $144/un. = $576,000 Multi-factor productivity $800,000/$576,000 = 1.39 Multi-factor productivity (1.67 – 1.39) / 1.67 = 16.8% decrease

B. LABOR PRODUCTIVITY

Original Value of output 2500 un. x $200/un. = $500,000 Input = (100 people x 40 hr/person) = 4000 hours Labor productivity $500,000/4000 hr = $125/hr Overtime Value of output 4000 un. x $200/un. = $800,000 Input = (100 people x 72 hr/person) = 7200 hours Labor productivity $800,000/7200 hr = $111/hr Labor productivity ($125/hr – $111/hr) / $125/hr = 11.1% decrease

C.GROSS PROFITS

Original $500,000 - $300,000 = $200,000 Overtime $800,000 - $576,000 = $224,000

$24,000 increase

5 0

3 years ago

The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balanc

tino4ka555 [31]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies expense A/c Dr $1,500

To supplies A/c $1,500

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $2,800 - $1,300

= $1,500

2. Insurance expense A/c Dr $1,320 ($6,600 ÷ 5 years)

To Prepaid Insurance $1,320

(Being prepaid insurance is adjusted)

3. Depreciation Expense A/c Dr $1,900

To Accumulated Depreciation - Equipment A/c $1,900

(Being depreciation expense is recorded for 2018)

4. Deferred revenue A/c $4,750 ($9,500 × 50%)

To Service revenue $4,750

(Being Deferred revenue is recorded)

5. Salaries and wages expense A/c Dr $2,900

To Salaries and wages payable A/c $2,900

(Being accrued salaries and wages are recorded)

5 0

3 years ago

Deitz Corporation is projecting a cash balance of $33,300 in its December 31, 2019, balance sheet. Deitz’s schedule of expected

Kisachek [45]

Answer:

Deitz Corporation

Cash Budget

For the Quarter ended March 31, 2020:

Beginning balance $33,300

Cash Collections From Customers 205,350

Sale of Equipment 3,330

Total available cash $241,980

Cash Payments:

Direct materials $47,730

Direct labor 77,700

Manufacturing overhead 38,850

Selling & Administrative 49,950

Purchase of Securities 15,540 $(229,770)

Ending Balance $12,210

Minimum Balance 27,750

Shortfall $15,540

Explanation:

Deitz Corporation uses this Cash Budget which it has prepared to understand its financial needs for the next quarter. For example, with the minimum balance of $27,750 most likely based on past experience the corporation will start making arrangements for some outside funds to the tune of $15,540 or more to meet its cash needs for the first quarter.

7 0

4 years ago