Answer: The economy during that time period was quite bad. Properties were not selling for a lot of money, due to a bad economy, where a lot of peoplecould not afford pricey land
Explanation:
Answer:
$23,950
Explanation:
Income $100,000
Expenses $75,000
Depreciation $22,000
income tax rate = 35%
Income $100,000
Expenses ($75,000)
Depreciation ($22,000)
EBT $3,000
Income Tax $3,000 * (35/100) = $1,050
Net Income $1,950
ATCF
=Earnings Before Tax + Depreciation
=$1,950 + $22,000 = $23,950
Answer:
Lopez Sales Company
1. Amount of Gross Margin recognized by Lopez:
Sales = $81,600
Less cost of sales = $38,400
Gross Margin = $43,200
2. Amount of the gain on the sale of land recognized by Lopez:
Land:
Selling price = $81,000
less Cost = $43,200
Gain on sale = $37,800
Explanation:
a) Gross margin is the difference between the selling price and the cost price of a product. It is the profit determined before business running expenses are deducted to obtain the net income or margin.
It measures the ability of the business to generate enough income to cover expenses that are normally incurred in business, like rent, utilities, and salaries and wages.
b) The Gain on sale of any capital asset is the difference between the selling price and the cost (book value). This gain is reported separately in the income statement and is the subject of capital gains tax.
Answer:
$16,296
Explanation:
Qualified residence interest payments = $22,200
Principal payments = $1,200
First year of ownership = $23,400
The annual after-tax cost of financing the purchase of the home will be
:
= Installment - tax saving
= $(23,400 - $7,104)
= $16,296
Note:
Tax Saving = 32 % of Interest amount
= 32% × 22,200
= $7,104
<span>Right of association-Gradpoint</span>