1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kolezko [41]
3 years ago
8

Sally was an all-state soccer player during her junior and senior years in high school. She accepted an athletic scholarship fro

m State University. The scholarship provided the following:
Tuition and fees $15,000
Housing and meals $6,000
Books and supplies $1,500
Transportation $1,200
a. Determine the effect of the scholarship on Sally's gross income.

Included in/Excluded from
Income
Tuition and fees
Housing and meals
Books and supplies
Transportation
b. Sally's brother, Willy, was not a gifted athlete, but he received $8,000 from their father's employer as a scholarship during the year. The employer grants the children of all executives a scholarship equal to one-half of annual tuition, fees, books, and supplies. Willy also received a $6,000 scholarship (to be used for tuition) as the winner of an essay contest related to bioengineering, his intended field of study. Indicate whether the following statements are "True" or "False" regarding the effect of the scholarships on Willy's and his father's gross income.

• The $8,000 scholarship is additional compensation to Willy's father and is included in his gross income.
• The scholarship is simply a payment to assist children of employees seeking an education and so is excluded from Willy's father's gross income.
• The $6,000 scholarship is taxable to Willy since he received it as a result of a contest.
Business
1 answer:
Y_Kistochka [10]3 years ago
7 0

Answer:

a. Determine the effect of the scholarship on Sally's gross income.

The $15,000 received for tuition- fees and the 1,500 received for books supplies can be excluded from Sally’s gross income as a scholarship. The $6,000 received for housing and meals and the 1,200 received for transportation has to be included in the gross income.

b. Sally’s brother, Willy, was not a gifted athlete, but he received $8,000 from their father’s employer as a scholarship during the year. The employer grants the children of all executives a scholarship equal to one-half of annual tuition, fees, books, and supplies. Willy also received a $6,000 scholarship (to be used for tuition) as the winner of an essay contest related to bioengineering, his intended field of study. Indicate whether the following statements are "True" or "False" regarding the effect of the scholarships on Willy's and his father's gross income.

• The $8,000 scholarship is additional compensation to Willy's father and is included in his gross income.

True.

The $ 8,000 is additional compensation to Willy’s father. Therefore, the father should include this amount in his gross income.

• The scholarship is simply a payment to assist children of employees seeking an education and so is excluded from Willy's father's gross income.

False.

• The $6,000 scholarship is taxable to Willy since he received it as a result of a contest.

False.

$6,000 is a scholarship which is used for tuition and is not taxable.

You might be interested in
Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. As of January 1, 2021,
devlian [24]

Answer:

Common stock = $210,000

Preferred stock = $15,000

Additional paid in capital = $2,801,000

Treasury stock  =    $120,000

Retained earnings = $31,600

Explanation:

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common.

As of January 1, 2021, the following accounts had the following balances: Common Stock $10,000, preferred stock $5,000, retained earnings was $9,600.

The following transactions affect stockholders' equity during 2021, its first year of operations: January 1-Dec. 31 Net Income $25,000

January 1 Issue 200,000 shares of common stock for $15 per share.

JOURNAL ENTRIES

Dr. Bank.......................3,000,000

Cr. Common stock.......................200,000

Cr. Additional Paid-in capital..2,800,000

February 6 Issue 1,000 shares of preferred stock for $11 per share.

JOURNAL ENTRIES

Dr. Bank.......................11,000

Cr. Preferred stock.......................10,000

Cr. Additional Paid-in capital.......1,000

October 10 Purchase 10,000 shares of its own common stock for $18 per share.

JOURNAL ENTRIES

Dr. Treasury Stock.......................180,000

Cr. Bank........................................................180,000

November 12 Resell 5,000 shares of treasury stock at $20 per share.

JOURNAL ENTRIES

Dr. Bank..............60,000

Cr. Treasury Stock.......................60,000

December 31 Paid dividends of $3,000

The closing balances can be computed as beginning balances + changes in the year = closing balances:

Common stock = 10,000 + 200,000 = $210,000

Preferred stock =  5,000 + 10,000 =    $15,000

Additional paid in capital = 2,800,000 + 1,000 = $2,801,000

Treasury stock  = 180,000 - 60,000 = $120,000

Retained earnings 9,600 + 25,000 - 3,000 = $31,600

8 0
3 years ago
Which activity relates to judging the seriousness or gravity of a given problem?
yKpoI14uk [10]

B. Evaluation  

Evaluating means to systematically determine somethings merits and significance, including the seriousness or gravity of a problem.

3 0
3 years ago
Read 2 more answers
The global stock market is often volatile. if your entire investment portfolio loss 10% of it's value in a month during a market
yaroslaw [1]

Answer:

B sell some

Explanation:

in a scenario where it is dropping, it doesn't mean it won't come back up. So you would sell some but keep a few so if it went up you still make profit

6 0
3 years ago
Blanche Corporation adds materials at the end of the process in the injection department, which is the second of two stages of i
inn [45]

Answer:

The material cost of the work in process at March 31 is d. $0

Explanation:

Note: Equivalent unit of Work in process of Material is 0 as material are added at the end of process which leads to total cost of material of work in proccess = 0.

3 0
3 years ago
Western Energy makes quarterly deposits into an account reserved for purchasing new equipment two years from now. The interest p
Iteru [2.4K]

Answer:

a. 2 years

b. 1 year

c. 12 times

Explanation:

Interest period is the duration of the deposit. It is the length of time the money would remain in deposit. This is 2 years according to the question

Compounding period = number of times interest would be paid. In the question, this is a year. So interest would be paid every year

The compounding frequency - it is the number of times the deposit would be compounded. It is 12 months

The future value of the deposit can be determined using this formula :  

FV = P (1 + r/m)^nm

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

m = number of compounding  

8 0
3 years ago
Other questions:
  • Kameron Gibson’s bank statement showed a balance of $1,020.35. Kameron’s checkbook had a balance of $282.10. Check No. 104 for $
    5·1 answer
  • Alabama this winter was socked in with snow which closed highways, stores and schools for weeks. Because of the road closures, s
    12·1 answer
  • How do the choices we make both producers and consumers help us with scarcity?
    7·2 answers
  • Identity and explain the type of adjustment raised in each transaction entered into by ABC Ltd. show how each adjustment will be
    14·1 answer
  • If the note bears interest at 12%, how many months has it been outstanding?
    7·1 answer
  • When used in a speech introduction, telling a story, asking a question, making a startling statement, and arousing curiosity are
    5·1 answer
  • On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $0.94
    9·1 answer
  • C Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, C determined that insurance prem
    8·1 answer
  • The next dividend payment by Wyatt, Inc., will be $2.30 per share. The dividends are anticipated to maintain a growth rate of 4.
    5·1 answer
  • Friedrich hayek advocated for the concepts of laissez-faire economic thought and free markets. True or false?.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!