Answer
$31,000
Explanation:
(c) $31,000
Explanation:
As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.
In the given case, the church did not designate any of Luke's salaries as a housing allowance. Hence it is not deductible from Gross Income for Income Tax Purposes and irrespective of designation or not, it is not deductible for self-employment tax.
Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.
Answer:
$620,000
Explanation:
to determine the net cash flow generated by the project, we can use the indirect method to determine cash flows:
net income = $790,000 x (1 - 30%) = $553,000
net income adjustments:
- depreciation expense $190,000
- increase in accounts payable $42,000
- increase in accounts receivable ($79,000)
- increase in inventory <u> ($86,000) </u>
Project's cash flow $620,000
Without the With the change
project project
Accounts receivable $5,000 $84,000 $79,000
Inventory $98,000 $184,000 $86,000
Accounts payable $75,000 $117,000 $42,000
D) a Japanese stores selling tea and spices from South Asia
Answer:
The Journal Entry is as follows:
Loss on Impairment $8,400
Debt Investment ($8,400)
Explanation:
Given.
Carrying Value = $79,200
Decreased Value = $70,800
Differences = $79,200 - $70,800
Differences = $8,400
Since the loss in value is determined, uncollectible.
The required entry on the journal entry are the amount loss on impairment and the amount invested on debt.
The Journal Entry is as follows:
Loss on Impairment $8,400
Debt Investment ($8,400)
