1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paraphin [41]
3 years ago
14

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current

year, ABC records net income of $293,000 after deducting Robert's $87,900 salary. In addition to his compensation, ABC pays Robert dividends of $205,100. a. What is Robert's qualified business income? $ b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $177,900?
Business
1 answer:
Arisa [49]3 years ago
3 0

Answer:

a. $293,000

b. $203,000

Explanation:

a. What is Robert's qualified business income?

Robert's qualified business income is the net income minus Robert's salary. Since the salary of $87,900 has already been deducted, $293,000 is Robert's qualified business income.

b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $177,900?

Extra deductible salary = $177,900 - $87,900 = $90,000

New Robert's qualified business income = $293,000 - $90,000 = $203,000

You might be interested in
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
irga5000 [103]

Answer:

Adriana Corporation

Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

= $543,670

Explanation:

The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low

The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

djsjsb

cvhjedskjb

gdggd

Download xlsx
5 0
3 years ago
The government increases taxes. What might be a reason for this change in fiscal policy?
Crank
A; a deficit due to improving nationwide public transportation. Surplus in this case means that we have left over money.
8 0
3 years ago
Read 2 more answers
Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freez
vladimir1956 [14]
The correct answer is a I a, typing to get the answer right
6 0
2 years ago
4 of 50 (3 complete)
Fantom [35]

Answer:

  • <em>The slope of the demand curve at point A is   </em><u><em> </em></u><u>- $0.40/unit</u>

  • <em>The slope of the demand curve at point B is     </em><u>- $0.14/unit</u>

Explanation:

See the file attached with the figure corresponding to this question.

<em>The slope of a curve</em> at a given point is the slope of the line tangent to the curve at that point.

<em><u>Point A:</u></em>

The tangent line to the <em>demand curve at point A is</em> drawn and passes through the points (20, 34) and (45, 24).Then, the slope is:

  • slope = rise / run = ΔP / Δq = $ (34 - 24) / (20 - 45) units

  • slope = - $10 /25units = - $2/5units = - $0.40/unit.

The minus sign indicates the that price decreases when the quantity increases

<u><em>Point B:</em></u>

<em>The tangent line to the demand curve at point B</em> passes through the points (90, 12) and (140, 5).Then, the slope is:

  • slope = rise / run = ΔP / Δq = $ (12 - 5) / (90 - 140) units

  • slope = - $7 /50units = - $7/50units = - $0.14/unit.

Again, the negative sign indicates that when the number of units increase the price decreases.

3 0
3 years ago
A company's sales budget indicates the following sales:
Ilya [14]

Answer:

26500.

Explanation:

Given: Sales of January, February and March.

           Beginning inventory is 12000.

           Company´s ratio of inventory to future sales is 45%.

Formula; unit to be produced= (\textrm{ next month budgeted sales + present months sales budget- beginning inventory})

First step: finding February´s budgeted sales

Next months (February) budgets sales= \frac{45}{100} \times 30000= 13500.

Now, putting values in the formula to find unit to be produced.

Unit to be produced in January= ((13500 + 25000 - 12000)= (38500 - 12000)

∴ Unit to be produced in the month of January is 26500.

                 

4 0
3 years ago
Other questions:
  • Fixed rate mortgage offer: Principal: $170,000 Term: 30 years Interest rate: 4.25%Use this fixed-rate mortgage calculator to hel
    7·1 answer
  • What is the purpose of the 1040 series of tax forms?
    9·2 answers
  • If expected return is less than required return on an​ asset, rational investors will​ ________.
    8·1 answer
  • What will keeping a running list of new words help you do?
    15·1 answer
  • Which of the following subjects should you study if you are seeking a career in agriculture or natural resources? Select all tha
    7·2 answers
  • According to the classical dichotomy, when the money supply doubles, which of the following also doubles?
    7·1 answer
  • Luxury Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States includin
    15·1 answer
  • Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemploym
    10·1 answer
  • Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine
    11·1 answer
  • as part of a team you are assigned to create appointment to report one of your asses to put people together and another team sen
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!