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Basile [38]
3 years ago
8

On November 1 of year 0, Jaxon borrowed $50,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid

interest of $4,500 relating to the 12-month period from November of year 0 through October of year 1.a. How much interest, if any, can Jaxon deduct in year 0 if his business uses the cash method of accounting for tax purposes?b. How much interest, if any, can Jaxon deduct in year 0 if his business uses the accrual method of accounting for tax purposes?
Business
1 answer:
Stels [109]3 years ago
4 0

Answer:

a. $750

b. $750

Explanation:

The first thing to do is calculate the monthly interest as follows:

Monthly interest = Total interest ÷ 12 = $4,500 ÷ 12 = $375

The rent for two months in year 0 (November and December) = $375 × 2 = $750.

Prepaid expenses (January to October of year 1) = $4,500 - $750 = $3,750.

Decision:

Prepaid expenses is not deductible under either cash accounting method or accrual accounting method for tax purposes.

Therefore, Jaxon can deduct only $750 two months (November and December) relevant for year 0 under both cash accounting method and accrual accounting method.

The prepaid expenses of $3,750 is not deductible in year 0 but can only be deducted in year 1.

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NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.5
konstantin123 [22]

Answer:

The current stock price is $13.60

Explanation:

D1 = $0.53

D2 = $0.58

D3 = $0.73

D4 = $1.03

Growth rate, g = 3.60%

Required return, r = 10.00%

D5 = D4 * (1 + g)

D5 = $1.03 * 1.036

D5 = $1.06708

P4 = D5 / (r - g)

P4 = $1.06708 / (0.10 - 0.036)

P4 = $16.673125

P0 = $0.53/1.10 + $0.58/1.10^2 + $0.73/1.10^3 + $1.03/1.10^4 + $16.673125/1.10^4

P0 = $13.60

So, current stock price is $13.60

7 0
3 years ago
Your manager wants to add more client pcs to an office, but there are not enough ports available. what device should be added to
Ivan

When the manager wants to add more client pcs to an office, but there are not enough ports available, a powerline adapter should be added to resolve the issue.

Using the electrical cabling, a powerline adaptor connects your computer to the internet. A powerline adaptor allows you to genuinely benefit from both worlds. Because a powerline adaptor still uses an Ethernet cable, albeit to a lesser extent, it is sometimes referred to as a powerline-Ethernet adaptor. Powerline adapters will function to connect your gaming computer or console to high-speed Internet, but they are not the greatest choice. It is advantageous that powerline adapters have lower latency than Wi-Fi. In contrast to their alternatives, they don't have the same level of dependability or quickness.

Learn more about powerline adapters here:

brainly.com/question/14672683

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3 0
2 years ago
Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a
tester [92]

The correct answers to these open questions are the following.

Maple Farms, Inc. v. City School District of Elmira.

Could something like this bankrupt a company?

Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.

Do you agree with the decision?

It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.

In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.

That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.

8 0
2 years ago
In a Cournot market with two firms, the inverse market demand curve is P = 20 – 0.5Q, where Q = q1 + q2. (Firm 1's output = q1;
Ksenya-84 [330]

Answer:

MR = 10 – 1q1.

Explanation:

Demand function, P = 20 – 0.5Q

Q = q1 + q2

Now insert Q in the P = 20 – 0.5Q.

P = 20 – 0.5 (q1 + q2)

We have the value of q2 = 20.

P = 20 – 0.5 (q1 + q2)

P = 20 – 0.5 (q1 + 20)

P = 20 – 0.5q1 – 10

P = 10 – 0.5q1

Total revenue of firm 1, TR = Pq1

TR = 10q1 – (0.5q1)^2

Now MR is the differentiation of TR. So the MR after differentiation if TR of firm 1 is:

MR = 10 – 1q1

4 0
3 years ago
Under absorption costing a company had the following per unit costs when 10,000 units were produced. Direct labor $ 2 Direct mat
Rudiy27

Answer: Total product cost per unit if 12,500 units = $13.

Explanation:

Given that,

Direct labor = $2

Direct material = $3

Variable overhead = $4

Total variable cost = $9

Fixed overhead ($50,000/10,000 units) = $5

Total product cost per unit = $14

Fixed Overhead at 12500 units = \frac{50000}{12500} = $4

∴  Total product cost per unit if 12,500 units = Total variable cost per unit + Fixed Overhead at 12500 units

= 9 + 4

= $13

6 0
3 years ago
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