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Dmitrij [34]
3 years ago
14

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received

a $38,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $38,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. a. What is the after-tax cost if Isabel pays the $38,000 bill in December?
Business
1 answer:
Olegator [25]3 years ago
8 0

Answer:

The after-tax cost is $23,940

Explanation:

For computing the after-tax cost, first we have to compute the present value which is shown below:

Present value = Bill payment × marginal tax rate

                       = $38,000 × 37%

                       = $14,060

So, after tax value would equal to

= Bill payment or Pre tax value - Present value

= $38,000 - $14,060

= $23,940

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The direct write-off method: multiple choice follows the expense recognition (matching) principle. Is not permitted under GAAP.
Lera25 [3.4K]

Answer: is permitted if results are similar to the allowance method

Explanation:

The direct write-off method is refered to as an accounting method whereby the uncollectible accounts receivable are being written off as bad debt. Here, the bad debts expense account will be debited while the accounts receivable will be credited.

The direct write-off method is permitted if results are similar to the allowance method. For the allowance method, it should be noted that an estimation of the bad debt future amount will be charged to the reserve account once the sale takes place.

4 0
2 years ago
For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. E
il63 [147K]

Depot Max's inventory turnover for the year is 8.3

Given

Cost of goods sold = $56900

Begining Jovenstory = $6540

Ending Inventory = $7250 .

Average inventory = opening inventory + closing inventory  / 2

= $6 540 + $-7250 / 2

Average inventory = $6895

cost of goods old

.: Inventory turnover = cost of goods sold / Average inventory

56900 / 6895

= 8. 252 times

He Depot Max's Inventory 8.3 times (approx ).

Learn more about turnover here: brainly.com/question/25623677

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3 0
2 years ago
Find three celebrities of your choice. Type a paragraph for each celebrity explaining their net worth. Include their background
Sidana [21]

Answer: SEE EXPLANATION!

Explanation:

Since the time when Billie Eilish first came into the music scene a few years ago, fans have not been able to get enough inner music. At just 18 years old, Eilish has already accomplished more in her career than other artists do in a lifetime. Her music and style is uniquely different, but that is what makes her so great. Many people in this world feel like they are different or “weird.” But when they see this young girl who is famous for dancing to the beat of her own drum, they realize that being different is not a bad thing.

Swift showed an interest in music at an early age, and she progressed quickly from roles in children’s theatre to her first appearance before a crowd of thousands. She was age 11 when she sang “The Star-Spangled Banner” before a Philadelphia 76ers basketball game, and the following year she picked up the guitar and began to write songs. Taking her inspiration from country music artists such as Shania Twain and the Dixie Chicks, Swift crafted original material that reflected her experiences of tween alienation. When she was 13, Swift’s parents sold their farm in Pennsylvania to move to Hendersonville, Tennessee, so that she could devote more of her time to courting country labels in nearby Nashville. A development deal with RCA Records allowed Swift to make the acquaintance of recording-industry veterans, and in 2004, at age 14, she signed with Sony/ATV as a songwriter. At venues in the Nashville area, she performed many of the songs she had written, and it was at one such performance that she was noticed by record executive Scott Borchetta. Borchetta signed Swift to his fledgling Big Machine label, and her first single, “Tim McGraw” (inspired by and prominently referencing a song by Swift’s favourite country artist), was released in the summer of 2006.

In February 2003, Shelton released The Dreamer, and its first single, "The Baby," reached No. 1 on the country music charts, hanging on for three weeks. The second and third singles from the album, "Heavy Liftin'" and "Playboys of the Southwestern World," each cracked the top 50, and The Dreamer went gold. In 2004 Blake Shelton began releasing a string of hit albums, beginning with Blake Shelton’s Barn & Grill. The second single from the album, "Some Beach," became his third No. 1 hit, and the singles "Goodbye Time" and "Nobody but Me" reached top 10, sending the album to gold status. Along with the album, Shelton released an accompanying video collection, Blake Shelton's Barn & Grill: A Video Collection. Pure BS was released in early 2007, and its first two singles, "Don't Make Me" and "The More I Drink," were both top 20 hits on the country charts. That same year, Shelton made his reality TV debut, appearing first as a judge on Nashville Star and then on Clash of the Choirs

8 0
2 years ago
Read 2 more answers
Mack reynolds, the manager of the special products division, must decide whether to bid or not, and if intermodular semiconducto
REY [17]
"from" (and any subsequent words) was ignored because we limit queries to 32 words.
4 0
2 years ago
Consider the following​ alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 y
Svetradugi [14.3K]

Answer:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

Raking 2% interest rate:

1) 10 years

2) 5 years

3) 1 year

Raking 18% interest rate:

1) 1 year

2) 5 years

3) 10 years

Explanation:

You have to apply to bring the amount of money to present value, according with the information, the formula is the next:

Present Value = Future Value/((1+ interest rate)^(n))

Where n is the number of years that you have to wait to receive the money.

You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:

Present value = 140/ ((1+10%)^(1))=  127    

                       =  140/ ((1+10%)^(5))=   149    

                        =  140/ ((1+10%)^(5))=   135

So the answer for the first scenario with an interest rate of 10% is:  

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

5 0
3 years ago
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