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Harlamova29_29 [7]
3 years ago
14

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses durin

g the year:
Rent $41,500
Bribes 62,250
Travel expenses 4,150
Utilities 24,900
Wages 356,750
Payroll taxes 20,750
Property insurance 2,075
Illegal kickbacks 37,350

Required:
What are Vella's total deductible expenses for tax purposes?
Business
1 answer:
amid [387]3 years ago
7 0

Answer and Explanation:

The total deductible expense is for tax purpose is shown below:

The income that is earned from gambling and winning lotteries via legal or illegal the same is to taxable

Also the nonrecorded and illegal expenses would be ignored

The following expenses should be considered as deductible

(1) Rent paid of $41,500

(2) Travel expenses  $4,150

(3) Utilities of $24,900

(4) Wages $356,750

(5) Payroll Taxes $20,750

(6) Property insurance $2075

Bribes and illegal kickbacks are not taxable

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Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materi
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Answer:

The amount of raw materials transferred to work in process is $98,000.

Explanation:

Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).

Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).

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3 years ago
A firm has a production process in which the inputs to production are perfectly substitutable in the long run. Can you tell whet
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Answer:

The marginal rate of technical substitution will remain constant.

Explanation:

The marginal rate of technical substitution is the rate at which an input is substituted for others. For instance, it is the rate at which the amount of labor should be decreased to increase the amount of capital.  

It represents the slope of an isoquant. When the inputs are perfectly substitutable, the isoquant is a straight line. In this situation, the marginal rate of technical substitution remains the same at all the points of the isoquants. The MRTS remains constant, though further information is needed to find out if it is high or low.

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3 years ago
An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its
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Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

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3 years ago
Clear Waters Snorkeling Equipment Company has had major losses for the last few years. U.S. Representative Snow has introduced a
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C. II only

Explanation:

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Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and re
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Answer:

The answer is letter A.

Explanation:

They will be construed agains the party who drafted the contract.  However, this rule only applies where one contracting party is in a superior  bargaining position, usually either as a result of greater experience or the assistance of counsel.

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