Answer:
The correct answer is D. When the product is sold and delivered to a customer.
Explanation:
It is recognized at the time of the sale, because the company receives an income as a result of the recovery of its cost plus the established profit margin. When the sale has not been made, it remains within the product inventories until the sale occurs and becomes an operational income.
All of the following statements are true with regard to qualifying business losses EXCEPT: Qualifying losses from 2017 were carried forward to the taxpayer's 2018 tax return.
Explanation:
The loss would reduce any other eligible income of the applicant for the current year. An investor shall recover the QBI from various trades or businesses, including damages.
Upon deduction of all qualified company gains for the current year, the excess of the income shall be rolled forward to the next tax year. The unfavorable balance shall be shifted into the next fiscal year.
If the loss was incurred after 2018, the excluded or lost element is included in QBI and would otherwise be included in QBI, but is included in taxable income not until the year.
The answer that you are looking for is true
Answer:
The correct answer is A) Regular corporation or C corporation
Explanation:
Because Candance and Martha want to sell shares, they have to form a corporation, be it a C Corporation or an S Corporation, however, they also want to avoid double taxation, therefore, they have to form a C Corporation.
A C Corporation or Regular Corporation is taxed on the income it makes, and nothing else, the profit after deducting taxes is not taxed again. A S Corporation, on the other hand, is taxed both on income and profit.
Answer: Expected value = $2,250,000. Proceed with project as this is positive.
Explanation:
Return if oil field contains 20 million barrels:
= (0.5 * 20 million) - 4 million
= 10,000,000 - 4,000,000
= $6,000,000
Return if oil field contains 5 million barrels
= (0.5 * 5 million ) - 4 million
= 2,500,000 - 4,000,000
= -$1,500,000
Both outcomes happening are equally likely so the expected value of this project is:
= (0.5 * 6,000,000) + (0.5 * -1,500,000)
= $2,250,000
<em>Expected value is positive so you should proceed with the project. </em>
