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katovenus [111]
3 years ago
6

This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, th

e company awarded Ed a gold watch worth $250 and a $2,000 cash bonus. What amount must Ed include in his gross income?
A. $2,250B. $2,000C. $250D. Zero if Ed offers to contribute his watch and bonus to a qualified charityE. Zero - all employee awards are excluded from gross income
Business
1 answer:
Zinaida [17]3 years ago
8 0

Answer:

The answer is A) $2,000

Explanation:

According to the IRS Publication 525 (2018), Taxable and Nontaxable Income

<em>"</em><em><u>If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service</u></em><em> or safety achievement, you generally can </em><em><u>exclude its value from your income</u></em><em>. However, the amount you can exclude is limited to your employer's cost and </em><em><u>can’t be more than $1,600</u></em><em> ($400 for awards that aren’t qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that don’t create a significant likelihood of it being disguised pay." </em>

Ed has to include the $2,000 he received as income but the $250 watch can be excluded.  

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The one-year forward rate of the British pound is quoted at $1.63, and the spot rate of the British pound is quoted at $1.60. Th
AysviL [449]

Answer:

The forward is discount, which is -1.8%

Explanation:

The forward rate is the rate of interest that is applicable or applied to the financial transaction, which will happen in the near future.

The percent is computed as:

= (Spot rate / Forward rate) - 1

where

Spot rate is $1.60

Forward rate is $1.63

Putting the values above:

= ($1.60 / $1.63) - 1

= $0.9815 - 1

= -1.8 %

which is forward discount.

8 0
3 years ago
Assume that Sandhill Co. uses a periodic inventory system and has these account balances: Purchases $420,800; Purchase Returns a
ivolga24 [154]

Answer:

Cost of goods Sold = $384,000

Gross Profit = $259,000

Explanation:

Cost of goods sold = Opening Inventory + Net Purchase - Closing Inventory

Opening Inventory = $58,100  Closing Inventory = $92,600

Net Purchases = Purchase - Purchase Return - Discounts + Freight in

Freight in forms part of cost of purchase because without this expense inventory cannot be bought in.

Net Purchases = $420,800 - $11,900 - $8,100 + $17,700 = $418,500

Cost of goods Sold = $58,100 + $418,500 - $92,600 = $384,000

Gross Profit = Sales - Cost of Goods Sold

= $643,000 - $384,000 = $259,000.

6 0
3 years ago
Xavier and Shawn are co-owners of a party-planning business. They split all of the profits 50-50 and are able to make decisions
pshichka [43]

In this instance, Xavier and Shawn are general partners. In this arrangement, all partners are equally responsible for the business, meaning they are both liable for any financial loss. LLC would protect their personal assets from this type of claim. Obviously, this isn't a sole proprietorship because there is more than one owner.

5 0
3 years ago
Read 2 more answers
What is one issue on which economists commonly disagree?give an example of each argument?
Vesna [10]

Answer:

quality and price of product

5 0
3 years ago
​Sofia files a suit against Turista Airlines, Inc. Turista responds that it appears from the pleadings that the parties do not d
alexandr402 [8]

Answer:

a motion for summary judgement.

Explanation:

According to my research on different legal proceedings , I can say that based on the information provided within the question this is a motion for summary judgement. This term refers to a request for the court to rule that the other party has no case, because there are no facts at issue. Which applies to this situation because Turista Airlines is not presenting any facts, yet they are arguing the case based on those non-existent facts.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
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