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OLga [1]
3 years ago
15

Roose, Inc. reported revenue of $92 million and incurred total expenses of $84 million. The total expenses included cost of good

s sold of $50 million, salaries and other administrative expenses of $9 million, $11 million of interest paid on a building's mortgage, and $14 million of depreciation. Assuming Roose is subject to the interest expense limitation, what amount of interest expense can the business deduct in the current year
Business
1 answer:
schepotkina [342]3 years ago
3 0

Answer:

Roose, Inc.

The business can deduct $9.5 million in the current year.

Explanation:

Revenue = $92 million

Expenses allowed = 73 million ( $84 - $11 million for interest expense)

Adjusted taxable income before interest = $19 million

50% of adjusted taxable income = $9.5 million

Disallowed interest expense in the current year = $1.5 million

The interest expense allowed (deductible) is 50% for 2019 and 2020, as amended by the CARES Act) of the taxpayer's adjusted taxable income.

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3 years ago
For each growth rate below, use the rule of 70 to calculate how long it will take incomes to double. Instructions: Round your an
STatiana [176]

Answer:

Explanation:

Rule 70 is used to estimate how long it tales a cashflow amount to double.

The formula is as follows ;

Number of years = 70 / growth rate

<u>At 1.4% growth rate;</u>

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Number of years = 70 / 4.9 = 14.29

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Number of years = 70 / 6.4 = 10.94

<u>At 7.5% growth rate;</u>

Number of years = 70 / 7.5 = 9.33

4 0
3 years ago
What happens to the interest rate after six months for credit card #1? 2. Which credit cards have an annual fee? 3. Is the grace
Andrews [41]
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7 0
3 years ago
Al can make 10 chocolate and 5 candies a year and Betty can make 30 chocolate and 10 candies a year.
Aleonysh [2.5K]

Answer:

1. Betty ; 2. Betty ; 3. Candies

Explanation:

Absolute Advantage is when one can produce more output of a good per unit of input , comparatively than other .

Comparative Advantage is when one can produce a good's output by comparatively lesser opportunity cost (other good sacrifised) than other .

AI : Chocolates = 10 , Candies = 5

Betty : Chocolates = 30 , Candies = 10

As it can be seen : Betty can produce both of more - chocolates (30) & candies(10) than AI (10,5) . So, it has Absolute Advantage in both - Candies & Chocolates.

However, AI is twice more productive in chocolates than toffees (10,5) ; but Betty is thrice more productive in chocolates than toffees (30,10). Comparatively, Betty is more productive in Chocolates. So opportunity cost of Chocolate in terms of sacrifised toffees is less for Betty 0.33 (10/30) than AI 0.5 (5/10).

So, trade between them would be : Betty selling its comparative advantage good Chocolate , AI selling its less comparative disadvantage good Candies.

6 0
3 years ago
What would most likely happen if the federal government decreased taxes for its citizens?
olga_2 [115]

Answer:

A) Aggregate demand will increase, especially for wealthy individuals.

Explanation:

Aggregate demand would increase, especially for wealthy individuals because disposable income would increase as a result of lower tax payable.

7 0
3 years ago
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