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3 years ago

How much student loan interest is tax deductible 2016?

1 answer:

hjlf3 years ago

4 0

2016 claims the full $2,500 deduction if your modified adjusted gross income is $65,000 or less. The deduction is gradually reduced when your modified adjusted gross income is between $65,000 and $80,000

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The entry to convert from the initial value method to the equity method usually involves a debit to Investment in Subsidiary acc

Nutka1998 [239]

Answer:

Parent's beginning of the year Retained Earnings

Explanation:

"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.

When the investor has a significant influence over the operating and financial results of the investee, it can directly affect the value of the investor's investment. The investor records its initial investment in the second company's stock as an asset at historical cost. Under the equity method, the investment's value is periodically adjusted to reflect the changes in value due to the investor's share in the company's income or losses. Adjustments are also made when dividends are paid out to shareholders."

Reference: Tuovila, Alicia. “Equity Method Definition.” Investopedia, Investopedia, 8 Oct. 2019

4 0

3 years ago

Charisma, Inc., has debt outstanding with a face value of $6.2 million. The value of the firm if it were entirely financed by eq

Alenkinab [10]

Answer:

Decrease in value of company due to expected bankruptcy cost = $414,000

Explanation:

As per the data given in the question,

According to M & M proportional I with taxes,

Levered firm value is = Equity + Debt

= $29,900,000 + 0.22 × $6,200,000

= $31,264,000

Market value of the firm = market value of debt + market value of equity

= $6,200,000 + 425,000 × $58

= $30,850,000

Decrease in value of company due to expected bankruptcy cost = $31,264,000 - $30,850,000

= $414,000

7 0

3 years ago

Nick’s Burritos purchases its inventory, on account, daily. At December 31, 2016, the company had taken receipt of $160,000 of i

Mkey [24]

Answer:

The $160,000 will be reported on the December 31, 2016, balance sheet as accounts payable

Explanation:

Account payable: The account payable is the amount in which the purchase of an item on a credit basis is recorded and the payment is to be made at the later date. It has come under the current liabilities on the balance sheet side.

In the given question, the purchase of inventory is made for $160,000 on a credit basis. Along with it, the receipt is also taken from the supplier. So, the same amount i.e $160,000 will be recorded in accounts payable

4 0

3 years ago

Processing clerks work in what?

AveGali [126]

Processing clerks work in Warehouses
Your answer is D.

They usually regulate incoming and outgoing packages

6 0

3 years ago

Read 2 more answers

Iota Inc. has a freewheeling culture, whereas Axiom Inc. has a culture based on structure and discipline. The merger of these tw

erik [133]

Answer:

Cultural gap

Explanation:

The merger of Iota Inc. and Axiom Inc. will be difficult due to the presence of a culture gap. An organization's culture may not always be in alignment with the needs of the external environment. The values and ways of doing things may reflect what worked in the past. The difference between desired and actual values and behaviors is called the culture gap. Culture gaps can be immense, particularly in the case of mergers.

Hope this works!!!!!

6 0

3 years ago