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Novay_Z [31]
3 years ago
12

Vernon is a cash basis taxpayer with a calendar tax year. On November 1, 2018, Vernon entered into a lease to rent a building fo

r use in his business as $4,000 a month. On that day Vernon paid 6 months rent on the building, a total of ($24,000 x 6 months). How much may Vernon deduct for rent expense on his 2018 tax return?
Business
2 answers:
Sedaia [141]3 years ago
7 0

Answer:

$8,000

Explanation:

From 1 November 2018 to 31 December 2018 will give us 2 months

Lease to rent a building for use in his business as $4,000 a month

Hence:

($4,000×2)= $8,000

Therefore Vernon will deduct $8,000 for rent expense on his 2018 tax return.

dimulka [17.4K]3 years ago
3 0

Answer:

$8,000

Explanation:

From the question above it is showed that the total prepaid rent paid by Vernon for the six months period (November-April) was $24,000 (6 × $4,000).

The amount to be deducted for rent expense for the year 2018 will be $8,000 (2months × $4,000).

This rent expense will be deducted for 2018 tax purposes only because it was incurred in 2018.

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Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expect
Reptile [31]

Answer:

The correct answer is 8%.

Explanation:

According to the scenario, the computation of the given data are as follows:

Let 1 year Treasury securities = t

So, Four year Treasury = [(Yield of 3 years Treasury × No. of year) + ( t × No. of  year)] ÷ Number of year

So, by putting the value, we get

6.5% = [(6% × 3) + ( t × 1)] ÷ 4

[(6% × 3) + t] = 6.5% ×4

t = 8%

So, the rate on 1-year Treasury securities three years from now is 8%.

4 0
4 years ago
Gugenheim, Inc., has a bond outstanding with a coupon rate of 7.7 percent and annual payments. The yield to maturity is 8.9 perc
Anna [14]

Answer:

Bond price= $1,793.62

Explanation:

Giving the following information:

Face value= $2,000

Number of periods= 17

Cupon rate= 0.077

YTM= 0.089

T<u>o calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 154*{[1 - (1.089^-17)] / 0.089} + [2,000/1.089^17)

Bond Price​= 1,324.21 + 469.41

Bond price= $1,793.62

3 0
3 years ago
2. Explain the strengths of a sole proprietorship and wn
adoni [48]

Explanation:

strengths:

1. He or she enjoys all the profit

2. easy to start up

3. decision making is quick

4.he or she can vary the hours of work

weakness:

1.there is lack of finance

2. lack of specialised staff

3.the owner bears all the risk

4.there is unlimited liability

who might start a sole proprietor business

1. a person that wants to be their own boss.

2.extra income.

3.the entrepreneur might think he will make more money working for his self than others.

6 0
3 years ago
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin
Digiron [165]

Answer:

$95,400

Explanation:

Step 1 : Find  the equivalent units of production in Ending Work in Progress

Materials = 18,000 x 100 % = 18,000 units

Conversion costs = 18,000 x 60 % = 10,800 units

Step 2 : Calculate the Cost of units in Ending Work in Progress

Cost of units in Ending Work in Progress = 18,000 x $2.75 + 10,800 x $4.25

                                                                    = $95,400

Conclusion :

The ending work in process inventory was $95,400.

3 0
3 years ago
Suppose that over the past year, the real interest rate was 3 percent, the cpi was 126.2 at the beginning of the year, and the c
Orlov [11]
A is the answer of these questions you had ask....
3 0
4 years ago
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