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3 years ago

What is total taxable income

1 answer:

4 0

Taxable income, generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. Your taxable income is, in other words, the amount of your income that is subject to income tax.

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A person who saves money for the future by buying a whole life policy A. pays the same premium for the same amount of term cover

Karolina [17]

Answer:

B. is able to accumulate tax-free interest earnings on cash values.

Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.

6 0

2 years ago

Tom operates an illegal drug-running operation and incurred the following expenses:Salaries $ 75,000Illegal kickbacks 20,000Brib

SSSSS [86.1K]

Answer:

Correct option is B

$160,000

Explanation:

From the question above, Cost of goods sold of $160,000 is treated as a negative item in calculating gross income rather than as a deduction.

For a drug dealer like Tom, all deductions

listed above are disallowed.

8 0

3 years ago

The objective of present value when used to determine an accounting measurement for initial recognition purposes is to Capture t

rusak2 [61]

Answer:

The objective of present Value is to present a set of cash flows based on their estimated fair value; to help decision makers in assessing the viability or otherwise of an option of investments.

Values don't stay the same year on year, various influences act to most times make the same $ amount lessened by tomorrows valuation; some factors like inflation, obsolescence, opportunity cost of not investing in other activities (cost of capital)....all these play a role in determining time value of money.

Present value attempts to harmonize all these influences and present a fair value of our $ dollar estimate of future values based on the impact of these factors.

3 0

3 years ago

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $

Ilya [14]

Answer:

d. $2,676

Explanation:

The computation of the horizontal value is shown below:

FCF1 = (100 × 1.06) = 106

FCF2 = (106 × 1.06) = 112.36

FCF3 = (112.36 × 1.06) = 119.1016

FCF4 = (119.1016 × 1.06) = 126.247696

FCF5 = (126.247696 × 1.06) = 133.8225578

Now

Horizon value is

= FCF5 ÷ (Cost of capital - Growth rate)

= 133.8225578 ÷ (0.08 - 0.03)

= $2,676

Hence, the correct option is d.

4 0

2 years ago

On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,300,000 four $5,000,000. Rigsby appropriately uses the

Flura [38]

<u>Solution and Explanation:</u>

Installment Receivables (Net) of $2,905,600

Basis Particulars Debit Credit

Sale:- Instalment Receivables $5,000,000

Inventory $3,200,000

Deferred gross profit $1,800,000

Payment:- Cash $4,90,000

Instalment Receivables $4,90,000

Deferred Gross profit $165,600

Realised Gross profit $165,600

Instalment Receivables ($5,000,000 minus $490,000) = $4,510,000

Deferred gross profit ($1,800,000 minus $165,600) = $1,634,400

Instalment Receivables (Net) = $2,875,600

8 0

3 years ago