The amount that ACME Partnership should report as ordinary income is $83,000.
Data and Calculations:
Sales Revenue = $200,000
Cost of goods sold = 115,000
Gross profit = $85,000
Administrative expenses 2,000
Operating income = $83,000
Interest expense 13,000
Taxable income $70,000
Charitable contributions 2,000
Long-term capital gain 10,000
The operating income is the ordinary income before determining the eligibility of the charitable deductions and the long-term capital gain.
Thus, the ordinary income of ACME Partnership is $83,000.
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Answer:
B - The potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
Explanation:
In the long term, such focused goods and services might be provided by every supplier, hence the Company (focused on one product) might earn less profits and lose its competitive advantage as more players have entered the competition to produce and sell similar products.
Answer:
The answer is d. Work in Process account.
Explanation:
Work-In-Process (WIP) refers to the materials that have started the production process, but have not yet been completed. The work-in-process inventory account is an asset account that is used to track the cost of the partially finished goods.
Donate surplus food from food stores to communities who need the support.
Answer:
$122,800
Explanation:
For computing the after-tax cash flow, first we have to determine the loss on sale a fixed asset which is shown below:
Loss on sale of the fixed asset would be
= Selling Price - Book Value
= $115,000 - $135,000
= -$20,000
And the tax rate is 39%
So the tax credit would be
= $20,000 × 39%
= $7,800
Now the after-tax cash flow of this sale would be
= Sale price + tax credit
= $115,000 + $7,800
= $122,800
