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Sliva [168]
3 years ago
10

Berkshire Inc. had revenues of $379,000 in its first year of operations. The company has not collected on $45,900 of its sales a

nd still owes $38,500 on $160,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The company paid $33,200 in salaries. The owners invested $46,000 in the business and $21,000 was borrowed on a five-year note. The company paid $1,890 in interest that was the amount owed for the year and paid $8,500 for a two-year insurance policy on the first day of business. Ignore the income tax effect, the net income for the first year for Berkshire is: Multiple Choice $219,000 $262,590 $179,660 $185,800
Business
1 answer:
amid [387]3 years ago
7 0

Answer:

$235,010

Explanation:

The computation of the net income for the year is shown below:

Receipt:  

Cash from customer ($379,000 - $45,900) $333,100

Investment in business  $46,000

Borrowed money on notes $21,000

Total Receipts (A) $400,100

Disbursement:  

Payment to vendor ($160,000 - $38,500) $121,500

Salary paid in cash       $33,200

Interest paid in cash   $1,890

Insurance policy purchased for cash $8,500

Total Disbursement (B) $165,090

Cash balance at the end (A - B) $235,010

The same is to be considered as a net income

All options that are given in the question is wrong

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Is the sole shareholder of a corporation. for the past five years, has reported little or no taxable income as a result?
OleMash [197]

For the past five years, Logan has reported little to no taxable income because he paid Graham a salary of $500,000 a year.

Multiply that result by the number of shares held for each individual shareholder. Complete Appendix K, the form companies must submit to list the amount of income attributable to each shareholder for the tax year.

The gross S Corporation income (or loss) reported in Appendix E is included in the income from rentals, royalties, partnerships, S Corporations, trusts, etc. section of an individual's Form 1040.

S corporation tax rate refers to the federal, state, and local personal income taxes an S corporation must pay. S Corporation owners must pay state and local income taxes ranging from 0% to 13.3% and a maximum federal income tax of 39.6%.

Learn more about shareholder at

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5 0
2 years ago
Kate purchased 500 shares of Fast Deliveries stock on Wednesday, July 7th. Ted purchased 100 shares of Fast Deliveries stock on
Nataly_w [17]

Answer:

d. Both Ted and Kate are entitled to the dividend.

Explanation:

There are 3 important dates when a corporation declares a dividend:

  1. The declaration date: in this case June 20th. It is the date when the corporation declares that it will pay a certain cash dividend.
  2. The date of record: the date of record is one day after the ex-dividend date, which means that the stockholders that the stock until the ex-dividend date will be entitled to receive the dividend. The stockholders that purchase the stock on the record date or any date after the ex-dividend date, will not be entitled to receive the dividend. In this case, the ex-dividend date was July 11th, and both Ted and Kate purchased the stocks before that date.
  3. The date of payment: the actual date when the dividends are distributed, in this case, August 1st.
5 0
3 years ago
For many years you have been using your local, small-town bank. One day you hear that the bank is about to be purchased by Bank
kari74 [83]

Answer:

If I was banking with my local town bank and it happens that Bank of Africa purchases it, there are cost and benefits associated with the merge. First, Bank of America is global, meaning that I will be able to access the Services such as ATM services at different points. Second, due to its area of coverage, the services are cheaper compared to the ones I got when it was in my local town. However, due to the monopoly of the bank, they might increase the charges making them more expensive than when the services in the local village. Additionally, it will be a challenge for average customers, such as farmers, to access big banks unless faithful people accompany them.

Explanation:

7 0
3 years ago
Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him two options for receiving the
Contact [7]

This decision will depend on whether or not Howie needs immediate money and the rate of inflation. Assuming there is no inflation, as the issue did not mention it, and Howie prefers the decision that yields the greatest financial reward, simply calculate and lower the tax in each situation, and then compare them.

<u>Scenario 1:</u> Total receipt upon ticket delivery with 46% deduction

46% = 46 \ 100 = 0.46

To find the value to be deducted, let's multiply the total by 0.46

500,000 * 0.46 = $ 230,000

That way Howie would get $ 500,000- $ 230000 = $ 270,000

<u>Scenario 2:</u> 25 installments of $ 36,000 with 25% deduction

The gross total will be 25x $ 36,000 = $ 900,000

Now it is enough to decrease 25% of the total amount, to find the amount of the tax.

25% = 25 \ 100 = 0.25

$ 900,000 * 0.25 = $ 225,000

Finally, simply decrease the amount received by the tax amount:

$ 900,000- $ 225,000 = $ 675,000

Therefore, Howie would be better off if he opted for the installment payment.

8 0
3 years ago
You deposit​ $5,000 per year at the end of each of the next 25 years into an account that pays​ 8% compounded annually. How much
Volgvan

Answer:

The correct answer is A. $18,276

Explanation:

First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.

You calculate the total amount saved for each year, using the formula:

S_{n} = S_{n-1} *(1+r)+D

Where

S_{n} is the total amount in the savings account for this period.

S_{n-1} is the total amount in the savings account from the previous period.

ris the interest rate.

Dare the annual deposits being made into the savings account.

Therefore for the first year you'd do:

S_{1} = S_{0} *(1+r)+D

S_{1} = 0*(1+0.08)+5000=5000

For the second year:

S_{2} = S_{1} *(1+r)+D

S_{2} = 5000*(1+0.08)+5000=10400

And so on. You can help yourself calculate the value of this series using programs like Excel.

I have attached an Excel file that has a table with the savings values for each of the 25 years.

So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):

Withdrawals = 365,529.70/20=18,276.485

In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.

Download xlsx
3 0
3 years ago
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