Answer:
Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica.
- This should be considered as part of the employees' compensation (and the employee should be taxed), therefore, the company can deduct 100% of it.
The employer has a cafeteria for its employees where meals are furnished at cost.
- Cafeteria meals are not included in the 50% deduction.
The employer sponsors an annual Labor Day picnic for its employees.
- This is considered a recreational activity paid by the employer, so the 50% deduction does not apply.
Every Christmas, the employer gives each employee a fruitcake.
- It is a fringe benefit, although I doubt that the employees are taxed for receiving a fruit cake. There is no 50% deduction. (referred to as de minimis fringe benefit)
The taxpayer gives business gifts to her clients at Christmas.
- Business gives are not subject to a 50% deduction, instead they are subject to a $25 limit.
I believe that the answer is... increase the cost of credit purchases
The type of market is the one in which a person buys stock in type fast food company is Financial market.
What is Financial market?
Any location or system that gives buyers and sellers thew ability to trade financial assets such as bonds, shares, the various international currencies, and derivatives , is referred to as a financial market.
Why is financial market important?
- Markets provide finance for companies so they can hire, invest and grow.
- They provide money for the government to help it pay for new roads, schools and hospitals.
- They can help lower the costs you face buying food at the super market, taking out a mortgage or saving for your retirement.
Learn more about financial market here:
brainly.com/question/19733618
#SPJ4
Answer:
Direct material price variance= $12,500 unfavorable
Explanation:
Giving the following formula:
The standard price per pound is $2.00.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The actual purchase price per pound of materials was $2.25.
<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 2.25)*50,000
Direct material price variance= $12,500 unfavorable
