When the boss hears about this, the employee would probably go under training or in the worst scenario can be fired. A serious company that wanted to be on top most likely wanted individuals who are willing to take different tasks and understand how the business works. The employee should learn about the business and improve.
When calculating the long term capital gain on the sale of the property, it is important to make sure adjustments are made from the original date of purchase and when the land was gifted.
To solve:
Adjusted amount = Original purchase amount + (gift tax X difference in what the land was worth/original land worth amount)
Adjusted amount = $20,000 + ($40,000 X $80,000/$100,000)
Adjusted amount = $52,000
Land owned for $200,000
Adjust amount is $52,000
$200,000 - $52,000 = $148,000
The long-term capital gain on the property is $148,000.
Answer:
Explanation:
The journal entries are shown below:
On July 15:
Purchase A/c Dr $89,180
To Accounts payable $89,180
(Being purchase of goods are made on credit with discount)
The computation of the purchase of tires after applying the discount is shown below:
= Number of tires × price per tire - discount rate
= 2,600 tires × $35 - 2%
= $91,000 - $1,820
= $89,180
On July 23:
Account payable A/c Dr $89,180
To Cash A/c $89,180
(Being payment is made)
On August 15:
Account payable A/c Dr $89,180
Interest expense A/c Dr $1,820
To Cash A/c $91,000
(Being payment is made on late interval)
Answer:
$6,900
Explanation:
When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.
Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900
