Answer:
the annual after-tax cost of financing the purchase of the home is $23,638.40
Explanation:
The computation of the annual after-tax cost of financing the purchase of the home is shown below:
= Installment amount - tax saving
= $33,200 - ($29,880 × 32%)
= $33,200 - $9,561.60
= $23,638.4
hence, the annual after-tax cost of financing the purchase of the home is $23,638.40
We simply applied the above formula
Answer:
$12,000
Explanation:
The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.
The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:
- partnerships or C corporations with less than $5 million in yearly revenue
- sole proprietorships and S corporations with less than $1 million in yearly revenues
- family owned farms
- you provide personal services and 95% of your revenue comes from it
- no publicly traded corporation is allowed
Explanation:
C. Created in the interview.
hope this helps you
have a nice day:)
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