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
vfiekz [6]
3 years ago
5

Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales

commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classify Patrick as:
A) An independent contractorB) A self-employed personC) An employeeD) A real estate assistant
Business
2 answers:
melomori [17]3 years ago
7 0

Answer:

The correct answer here is C) an employee .

Explanation:

Even though Patrick has written independent contract agreement with his broker, he will be considered an employee not independent contractor because Patrick is earning 75% of his total income from his broker on a hourly wage and that is paid to him on normal pay date , while the independent contractors are paid when the accounts payable receives the invoice, usually independent contractors are paid after the completion of task or at the end of a period.

marin [14]3 years ago
7 0

Answer:

A) An independent contractor

Explanation:

The IRS uses the following 3 criteria to determine if a worker is an employee or not:

  1. Behavioral: does the employer control what the worker does? if +, employee
  2. Financial: does the employer have control over how and what amount a worker is paid? if +, employee
  3. Type of Relationship: Does the worker have any written contract or any does he/she receive any type of benefits? Does the relationship between the employer and the worker permanent? If +, employee

Apparently Patrick would fit quite well into the criteria of being an employee, but since he has a written agreement that states that he is an independent contractor, then that is how he should be classified. Also, it must be considered how Patrick pays his taxes, but we were not given that information.

Some states use a more strict parameter to determine if a worker is an employee, but that is not the case here.

You might be interested in
The substitution effect of an increase in the price of Raisin Bran refers to Select one: a. the decrease in the demand for Raisi
EleoNora [17]

Answer:

the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.

Explanation:

the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.

If the price of the good increases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.

The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.

5 0
2 years ago
A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity
TiliK225 [7]

Answer:

The production capacity the manufacturer should reserve for the last day = 206.00 units.

Explanation:

Normal production = 1000 X $ 10

Normal production = $ 10,000

Spot production = 1,000 X $ 15

Spot production = $ 15,000

p* = 15,000 - 10,000 / 15,000

p* = 0.33

Q = norminv(0.33,250,100)

The production capacity the manufacturer should reserve for the last day = 206.00 units

7 0
3 years ago
Suppose you have two credit cards. The first has a balance of $415 and a credit limit of $1,000. The second has a balance of $21
gayaneshka [121]

In overall utilization ratio it takes all the credit limits and all the credit cards. For example, all the credit limits are $1000 + $750 = $1750. and the cards is $415 + $215 = $630.

To calculate for the credit utilization ratio we divide by the total credit limits on all cards then we multiply by 100. For example,

The first and second credit cards is $415 + $215 = $630.

The first and second limits is $1000 + $750 = $1750.

To get the percentage of the overall utilization ratio we get,

$630 / $ 1750 × 100 = 36%.

7 0
3 years ago
Read 2 more answers
Diana is a customer of Apexoria Bank, which is not a member of the FDIC. She currently has a checking account with $11,000 in it
Stella [2.4K]
<span>The answer is A.$0 Since, the Apexoria Bank is not a member of FDIC, no money of Diana is FDIC protected.</span>
7 0
3 years ago
Read 2 more answers
Recording Transactions Using Journal Entries and T-Accounts Receive $40,000 cash in exchange for common stock. Purchase $4,000 o
Paladinen [302]

Answer:

a. See the explanation below for the journal entries.

b. each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a zero ending balance.

Explanation:

a. Recording Transactions Using Journal Entries

The journal entries will look as follows:

<u>Accounts Name                               Dr ($)                 Cr ($)    </u>

Cash                                               40,000

Common stock                                                         40,000

<em><u>(To record cash receipts for common stock.)                          </u></em>

Inventory                                           4,000

Accounts payable                                                      4,000

<em><u>(To record inventory purchase.)                                               </u></em>

Account receivable                          6,000

Sales                                                                           6,000

<em><u>(To record credit sales.)                                                            </u></em>

Cost of sales                                     4,000

Inventory                                                                     4,000

<em><u>(To record cost of sales.)                                                             </u></em>

Cash                                                  3,000

Account receivable                                                    3,000

<u><em>(To cash collected from credit sales.)                                        </em></u>

Equipment                                       10,000

Note payable                                                            10,000

<em><u>(To record purchase of equipment by issuing note.)                </u></em>

Wages                                               2,000

Cash                                                                            2,000

<em><u>(To record wages paid in cash.)                                                 </u></em>

Note payable                                   10,000

Cash                                                                            10,000

<em><u>(To record note due paid.)                                                           </u></em>

Dividend                                            4,000

Cash                                                                             4,000

<em><u>(To record cash dividend paid.)                                                   </u></em>

b. Recording Transactions Using T-Accounts

Note: See the attached excel file for the  T-Accounts.

From the attached excel file, each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a no or zero ending balance.

Download xlsx
8 0
2 years ago
Other questions:
  • Within its human resource​ department, hoosier enterprises has a vice president of human​ resources, a director of human​ resour
    11·1 answer
  • The price of greatness is responsibility meaning
    7·1 answer
  • Great Southeast ​Company's Cash account shows an ending balance of $ 720. The bank statement shows a $ 26 service charge and an
    9·1 answer
  • Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
    11·1 answer
  • Intellectual property protection, nondisclosure agreements, assignments of inventions and, covenants not to compete and license
    11·1 answer
  • As a manufacturing firm builds a plant in Bolivia, it also has to build an airstrip so that it can get the building supplies and
    10·1 answer
  • When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts
    13·1 answer
  • Jamie lee received an offer to transfer the balance of all of her store credit cardsto her bank credit card in the mail. It offe
    7·1 answer
  • If I have an F and have nothing to do. what should I do
    11·1 answer
  • A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!