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adelina 88 [10]
4 years ago
7

Kendra is a self-employed taxpayer working exclusively from her home office. Before the home office deduction, Kendra has $6,000

of net income. Her allocable home expenses are $10,000 in total. How are the home office expenses treated on her current year tax return?
a. Only $6,000 home office expenses may be deducted, resulting in net business income of zero. The remaining $4,000 of home office expenses may be carried forward and deducted in a future year against business income.
b. All home office expenses may be deducted, resulting in a business loss of $4,000.
c, Only $6,000 of home office expenses may be deducted, resulting in a net business income of zero. None of the remaining $4,000 of home office expenses may be carried forward or deducted.
d. Only $3,000 a year of the home office expenses may be deducted.
Business
1 answer:
melomori [17]4 years ago
6 0

Answer:

The correct answer is A.

Explanation:

Only $6,000 home office expenses may be deducted, resulting in net business income of zero. The remaining $4,000 of home office expenses may be carried forward and deducted in a future year against business income.

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kofi electronics bought a shipment of Tvs at a net price of $477.36 each, after discounts of 15%,10% and 4%. what is the list pr
Liono4ka [1.6K]

Answer:

$650

Explanation:

Let x be the list price of the Tvs

85% of x = 0.85x

90% of 0.85x = (0.9)(0.85)x

96% of (0.9)(0.85)x = (0.96)(0.9)(0.85)x

The net price is given by $477.36

Therefore, $477.36 = (0.96)(0.9)(0.85)x

Hence x = $477.36 / (0.96)(0.9)(0.85)

x = $477.36 / 0.7344

x = $650

So, the list price is the list price

5 0
3 years ago
Journalize the below entries.
grigory [225]

Answer:

Dec. 2.

Dr. Inventory $4,000

Cr. Troy $4,000

Dec. 3.

Dr. Rent Expense $2,600

Cr. Cash $2,600

Dec. 5.

Dr. Office Supplies $450

Cr. Rigby Supply $450

Dec. 8.

Dr. Utility Expense $590

Cr. Cash $590

Dec. 9.

Dr. Equipment $6,500

Cr. Alright Equipment $6,500

Dec. 10.

Dr. Alright Equipment $6,500

Cr. Equipment $6,500

Dec. 11.

Dr. Troy $4,000

Cr. Discount received $40

Cr. Cash $3,960

Explanation:

Dec. 11

The terms 1/10 n/30 mean there is a discount of 1% available on the payment to be made in 10 days of the purchase. The net credit period is 30 days. As the payment is made within the discount period, hence the payment will be made net of discount.

Discount on Purchase = $4,000 x 1% = $40

Payment = Total amount due - Discount = $4,000 -$40 = $3,960

3 0
3 years ago
A for-profit institution that works with the general public to open and manage savings accounts is known as a(n) _____. A. comme
Svetradugi [14.3K]

A for-profit institution that works with the general public to open and manage savings accounts is known as a(n) savings bank.

Answer: C. savings bank

4 0
3 years ago
National manufacturer of ball bearings is experimenting with two different processes for producing precision ball bearings. it i
34kurt
This example is a Measuring test, this is provided by standard and deviation.
8 0
3 years ago
Operating Leverage
amid [387]

Answer:

Degree of operating leverage= 1.4

Explanation:

Giving the following information:

Sales $6,160,000

Variable costs (4,620,000)

Contribution margin $1,540,000

Fixed costs (440,000)

Operating income $1,100,000

<u>To calculate the degree of operating leverage, we need to use the following formula:</u>

degree of operating leverage= Total contribution margin / operating income

degree of operating leverage= 1,540,000 / 1,100,000

degree of operating leverage= 1.4

3 0
3 years ago
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