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Aleksandr-060686 [28]
3 years ago
8

Mike started a calendar year business on September 1st of this year by paying 12 months of rent on his shop at $1,000 per month.

What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?
Business
1 answer:
serious [3.7K]3 years ago
6 0

Answer:

accrual method = $4000

cash method = $12000

Explanation:

given data

rent = $1000

time = 12 month

to find out

maximum amount of rent

solution

we know from 1 September mika start paying rent

so  September to December = 4 months

so by accrual method

accrual method = rent × time

accrual method = 1000 × 4

accrual method = $4000

and

by cash method

cash method  = rent × time

cash method  = 1000 × 12

cash method = $12000

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When appreciated property is distributed in a nonliquidating distribution, the net effect on the distributing corporation's E&am
lys-0071 [83]

Answer:

True

Explanation:

"Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders. At the shareholder level, a nonliquidating corporate distribution can produce a variety of tax consequences, including taxable dividend treatment, capital gain or loss, or a reduction in stock basis. [...]

The corporate-level tax consequences of a nonliquidating corporate distribution depend on whether the distribution consists of cash or property (other than cash). The corporation does not recognize gain or loss when it distributes cash to shareholders or when it redeems stock in exchange for cash payments."

Reference: Ellentuck, Albert  B. “Understanding the Effects of Nonliquidating Distributions on Corporations.” The Tax Adviser, 1 Jan. 2009

8 0
3 years ago
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lyudmila [28]

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8 0
3 years ago
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Holly Lane is an accountant with Mildred​ & Lane Co. and she has recently been asked to visit Maine Manufacturers to survey
nevsk [136]

Answer: <u><em>Audit</em></u>

Explanation: In this case the evaluation of financial records of the corporation(Maine Manufacturer) done by Holly lane is known​ an <u><em>audit.</em></u>

Audit is a methodical and autonomous process under which one examines  statutory records(i.e  books, accounts,documents and vouchers) of an institution and also appraise their acquiescence with laws, and provide an assessment  reflecting the expound of organization's financial records.

Therefore, the correct option is (b)

3 0
3 years ago
9.   The factor that has the greatest impact on your credit score is
ohaa [14]
The answer to your question is loans
8 0
3 years ago
a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety
lutik1710 [3]

Answer:

Results are below.

Explanation:

Giving the following information:

Break-even point in sales= $960,000

Actual sales= $1,200,000

<u>To calculate the margin of safety in dollars and as a percentage, we need to use the following formulas:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= (1,200,000 - 960,000)

Margin of safety= $240,000

Margin of safety ratio= (current sales level - break-even

point)/current sales level

Margin of safety ratio= 240,000 / 1,200,000

Margin of safety ratio= 0.2 = 20%

8 0
2 years ago
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