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Dmitry_Shevchenko [17]
4 years ago
13

Jebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for S

amson, Inc., under a long-term contract. The gross contract price was $2,300,000. Jebali finished construction in 2019 at a cost of $2,100,000. However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $80,000. In 2020, the dispute is settled and Jebali fixed the doorway at a cost of $65,000. a. How much must Jebali include in gross income
Business
1 answer:
melamori03 [73]4 years ago
7 0

Answer:

Jabeli must include = $2,220,000

Explanation:

As per the data given in the question,

Gross Income in 2019 = $2,300,000 - $80,000

= $2,220,000

So, Jabeli should include $2,220,000 in gross income and Jabeli is allowed to deduct $2,100,000 in 2019

In completed contact method of accounting :

Till the contract is completed and accepted, no revenue from the contract is recognized

In this case the purchaser may desire additional work to be done on a long term contract.

The regulations do not provide any amount of income(or loss) until the dispute is resolved.

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Which one of the following stocks is correctly priced according to CAPM if the risk-free rate of return is 3.4 percent and the m
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Answer:

D) Beta .98 expected return .107

Explanation:

In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%

We try every choice consecutively

A) Beta .87  expected return .096

⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098

A is wrong

B) Beta 1.09   expected return .102

⇒ expected return = 3.4% + 1.09 * 7.4% = 0.1147

B is wrong

C) Beta 1.62 expected return .146

⇒ expected return = 3.4% + 1.62 * 7.4% = 0.154

C is wrong

D) Beta .98 expected return .107

⇒  expected return = 3.4% + 0.98 * 7.4% = 0.107

D is TRUE

E) Beta 1.16   expected return .139

⇒ expected return = 3.4% + 1.16* 7.4% = 0.12

E is wrong

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3 years ago
A bank customer receives an e-mail from a sender claiming to be a bank employee. The e-mail asks the customer to provide persona
Strike441 [17]

The most likely response by the customer that will be a privacy risk is b) Calling the phone number given in the e-mail and providing the personal information over the phone.

<h3>How can you avoid Phishing?</h3>

Phishing refers to attempts by criminals to steal your personal information and use it to drain you financially.

In order to avoid them, never give your personal bank details over the phone because your bank will never ask for that, and don't communicate with anyone who asks for these details.

Find out more on phishing at brainly.com/question/2537406.

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6 0
2 years ago
Why is Netflix's stocks going down?
ahrayia [7]

Answer:

Netflix stock was falling sharply Wednesday after the streaming giant posted disappointing first-quarter earnings, prompting a flurry of price target cuts and critique from analysts.

Explanation:

Hope this helpes.

6 0
2 years ago
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Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 4%. The
ExtremeBDS [4]

Answer:

Explanation:

the present value of the future cash flows is the the value of the bond we calculate the present value as follows

Cash flow  4% = 40000 per year for 4 year p.v using annuity

Cash flow = 1000000 at year four present value using compound formula

Present value at yield rate 7.7%

Cash flow Discount Factor Present Value

1000000 0.743253883           743253.8831

40000         3.334365155           133374.6062

                                            876628.4893

Compound = 1000000/(1+7.7%)^4

Annuity       = 40000*  (1-(1+7.7%)^-4) / 7.7%

6 0
3 years ago
Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest compe
dangina [55]

Answer:

C) The demand for analgesic drugs in the Terranian market is expected to remain stable.

Explanation:

The options were missing:

  • A) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
  • B) A customer survey shows that Cetaprin users do not prefer it to other analgesics in the market.
  • C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
  • D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
  • E) The Terranian market for healthcare products is expanding rapidly.

A cash cow is a mature product that is sold in a slow growth market, but holds a significant market share, and generate large and constant cash inflows to the company.

3 0
3 years ago
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