Answer:
Single-layer taxation
Explanation:
Limited liability companies and S corporations are able to pass through their income as the owner's income. "LLC and S corporations" are entities, unlike the C corporation.
Pass-through entities have a taxation advantage over non- pass-through entities. In tax computation, a pass-through entity passes its income or losses as those of its owners; hence the entity will not be subject to income tax. The business profits are treated as income to the owners, who will pay individual tax income. LLC and S corporation have only one layer of taxation.
A C corporation is subject to taxation as an independent entity. The directors have to file corporate tax returns on behalf of the business based on the company profits. The business profits are distributed to the shareholder as dividends. The shareholders have to pay tax on the dividend received as part of their income tax. The shareholders are double-taxed, as the business owners- corporate tax and as individuals - income tax. Double layer taxation.
Answer:
Total current liabilities 85.008,33
Explanation:
current liabilities: obligations that will setlte within a one-year period
<em />
<em>accounts payable</em> from the purchase of equipment:
cost: 176,500
paid: <u> (125,900) </u>
balance: 50,600
<em />
<em>waranty liaiblity:</em>
191,000 x 5% = 9,550
<em>sales tax payable:</em>
sales for 191,000
paid for <u> (141,000) </u>
unpaid for 50,000 x 6% = 3,000
<em>note payable</em> with a local bank:
principal: 21,500
accrued interest: 21,500 x 5% x 1/3 = 358,33
net: 21,858.33
<u>Total current liabilities:</u>
accounts payables 50,600
warrant liability: 9,550
sales tax payable: 3,000
note payable: <u> 21,858.33 </u>
85.008,33
Answer:
$10,202.87
Explanation:
The balance will be the sum of a 6-term geometric sequence with first term 1500 and common ratio 1.05. The sum of such a sequence is given by ...
sn = a1(r^n -1)/(r -1)
We have a1=1500, r=1.05, n=6, so the sum is ...
s6 = 1500(1.05^6 -1)/(1.05 -1) = 10,202.87
Walter's account balance after the 6th deposit will be $10,202.87.
Answer:
Decorative Concrete
1. This contingent liability should be disclosed in a note only.
2. Decorative Concrete should not report any loss in its income statement, yet.
3. Decorative Concrete should not report any liability in its balance sheet, yet.
4. No entry should be recorded in the journal.
Explanation:
a) Data and Calculations:
Estimated loss = $1.1 and $4 million
Loss is probable but the loss cannot be reasonably estimated
b) Decorative Concrete cannot reasonably estimate the loss that may arise from the contingent liability. Therefore, it should only disclose the future event in a note to the financial statements. Accounting rules specify that Decorative Concrete should record this event as a contingent liability in its accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. At that time, a specific amount of loss will be recorded (debit) and a specific liability established (credit) in advance of the settlement. In this Decorative's case, only one condition is met.
