1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Scorpion4ik [409]
3 years ago
12

Au Sable Corporation reported taxable income of $760,000 in year 2 and paid federal income taxes of $176,500. Not included in th

e computation was a disallowed penalty of $42,000, and life insurance proceeds of $185,000. Included in the computation of taxable income is a deduction for the bargain element of exercised nonqualified stock options of $67,000. The corporation's current earnings and profits for year 2 would be:
Business
1 answer:
butalik [34]3 years ago
5 0

Answer:

$726,500

Explanation:

The computation of current earnings and profits for year 2 is shown below:-

current earnings and profits for year 2 = Profit as per Income Tax - Penalty disallowed + Life insurance proceed - Tax Expenses

= $760,000 - $42,000 + $185,000 - $176,500

= $945,000 - $42,000 - $176,500

= $726,500

Therefore we have applied the above formula to reach out the current earnings and profits for year 2.

You might be interested in
Carol has decided to open a Vietnamese restaurant in her neighborhood. She will be solely responsible for the management of the
bogdanovich [222]

Answer:

e. She may find it difficult to deal with the stress of rent increase.

Explanation:

Carol has decided to open a Vietnamese restaurant solely. She has adopted 'sole proprietorship' form of business.

Sole Proprietorship is a form of business owned, run & managed by a single entrepreneur (proprietor).

This form of business has following advantages & disadvantages:

  • Advantages : Easy formation, dissolution ; sole, flexible, quick decision making
  • Disadvantages : Limited Capital ; Entrepreneur Unlimited Liability ; Less expansion scope.  

So : Carol being a sole proprietor won't face problems like - difficulty in quick & independent decision making, adaptability to market demand, focus on specific consumer groups .

She as a sole proprietor, would rather face issue like limited capital funds & hence would - find it difficult to deal with stress of rent increase.

3 0
4 years ago
If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sell
aalyn [17]

If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sells 6 units, then one can infer the firm is a perfect competitor.

Turnover is the total amount of revenue generated from the sale of goods or services related to the company's main activities. Earnings, also known as gross earnings, are often referred to as the "top line" because they are at the top of the income statement. Income or Net Profit is the gross profit or profit of a business.

Simply put, revenue is how much money a company makes and profit is how much money a company can keep after paying all its expenses. Here's another example that clarifies where sales and profit are on the income statement. The black box at the top shows the gross or gross sales.

Learn more about revenue at

brainly.com/question/16232387

#SPJ4

3 0
2 years ago
Eugene and Velma are married. For 2018, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate retur
mestny [16]

Answer:

Eugene's taxable income is $10,800

Explanation:

in case of separate filling, if one spouce sellected itemized deduction then other will also have to use itemized deduction.

taxable income =  $25,000 - $14,200

                          = $10800

Therefore, Eugene's taxable income is $10,800.

8 0
3 years ago
Marketing based on socioeconomic and psychological factors is known as
Oksi-84 [34.3K]

If I am correct, it might be Target Market.

5 0
3 years ago
Read 2 more answers
What is marginal cost of capital?
Ghella [55]
Marginal cost of capital (MCC) schedule is a graph that relates the firm's weighted average cost of each unit of capital to the total amount of new capital raised.
4 0
3 years ago
Other questions:
  • Porches & verandas, inc., agrees to build a screen porch for quinn, but fails to complete the job. quinn hires ramadas, inc.
    7·1 answer
  • Item I51 is used in one of Policy Corporation's products. The company makes 18,000 units of this Item each year. The company's A
    13·2 answers
  • Given the following data:
    7·1 answer
  • The adjusted trial balance for PI Detectives reported the following account balances: Accounts Receivable $540; Supplies $9,400;
    9·1 answer
  • What are the subjects of economics
    10·1 answer
  • What are two components of oral communication include. (A) pitch and eye contact. (b) eye contact and pronunciation. (c) enuncia
    8·2 answers
  • On November 1, 2017, Bob, a cash basis taxpayer, gave Dave common stock. On October 30, 2017, the corporation had declared the d
    13·1 answer
  • A firm has three different investment options. Option A will give the firm $10 million at the end of one year, $10 million at th
    15·1 answer
  • Maria just found out a teacher is sick and is calling in a substitute to teach their classes. Which of Fayol's five functions do
    7·1 answer
  • Include the following:: The name of the career Some information you learned from research Education a person needs to get this t
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!