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Nutka1998 [239]
3 years ago
13

Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. Debra's compensation is $40,000

for the year. How much is he allowed to contribute to the plan for Debra?
Business
1 answer:
aksik [14]3 years ago
7 0

Answer:

$10,000

Explanation:

The maximum contribution you can made to SEP shall not exceed the lower of the following two limits for 2020:

1. 25% of total compensation paid to employee.

2. $57,000

By applying the above rule to the given scenario in question, the maximum contribution allowed by the Anthony to be made to SEP for Debra shall not exceed:

25% of total compensation=25%*40,000=$10,000

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Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000
777dan777 [17]

Answer:

correct option is b. $22,000

Explanation:

given data

reported revenues = $810,000

expenses = $630,000

annual amount of amortization  = $15,000

solution

we get here net income 2019 is

net income 2019 = revenue - expenses - amortization  ........1

put here value

net income 2019 = $810,000 - $630,000 - $15,000  

net income 2019 = $165,000

and

as here acquired stock on September

so we get here income for September to December that is

net income = $165,000 × \frac{4}{12}    

net income = $55000

and

non controlling interest is

non controlling interest = 40% of $55000

non controlling interest = $22,000

so correct option is b. $22,000

5 0
4 years ago
From what part of income should someone take savings?<br>​
vovikov84 [41]

Answer:

nowhere

it wouldnt help anyway

5 0
3 years ago
Read 2 more answers
TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = \frac{45,000}{2,500} = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0
3 years ago
Christie and Jergens formed a partnership with capital contributions of $390,000 and $490,000, respectively. Their partnership a
xxMikexx [17]

Answer:

Christie 's share =  $ 37759.09

Jergens Share = $ 47,441

Explanation:

Partner's Profit share are calculated after the deduction of salary or any other interest incomes.

Profit for the current year = $ 163,000

Christie' s Salary                    $ 69,000

Christie Interest Income          $ 3900

10 % 0f $ 390,000

Jergens  Interest Income         $ 4900

10 % 0f $ 490,000

Profit  Balance                                       $ 85,200

Profit Sharing Ratio

Christie : Jergens

390,000: 490,000

39: 49

Christie 's share = $ 85,200 * 39/88= $ 37759.09

Jergens Share = $ 85,200 * 49/88= 47440.9= $ 47,441

6 0
3 years ago
Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2013, Z-Mart made install
Tresset [83]

Answer:

                                        Dr.                  Cr.

Sale

Account Receivable    $300,000

Inventory                                          $210,000

Deffered Gross Profit                      $90,000

Payment Receipt

Cash                             $135,000

Account Receivable                        $135,000

Profit Recognition

Deffered Gross Profit  $40,500

Relaized Gross Profit                      $40,500

Explanation:

On sale a receivable is recorded and goods has been transferred to customer and its cost is been deducted from inventory. The Gross profit is deferred until the receipt of payment.

Deferred Profit = $300,000 x 30% = $90,000

Inventory cost = $300,000 - $90,000 = $210,000

Cash received from the customer, profit proportionated to the the cash receipt is realized gross profit.

Realized Profit = $135,000 x 30% = $40,500

5 0
3 years ago
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