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Sonja [21]
3 years ago
7

Clyde operates a sole proprietorship using the cash method. This year Clyde made the following expenditures: $480 to U.S. Bank f

or 12 months of interest accruing on a business loan from September 1 of this year through August 31 of next year even though only $160 of interest accrued this year. $600 for 12 months of property insurance beginning on July 1 of this year. What is the maximum amount Clyde can deduct this year?
Business
1 answer:
Zielflug [23.3K]3 years ago
5 0

Answer:

$760

Explanation:

Clyde

Interest is been deducted proportionately and the interest of 4 months of this year will be deductible – ($480/12) × 4 months

= $160

12-month rule also applies to insurance and t the full amount of insurance is as well deductible.

Hence:

Maximum deduction

= $160 interest + $600 insurance

= $760

Therefore the maximum amount Clyde can deduct this year is $760

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Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the
Anton [14]

Solution :

a).

Estimated overhead                                1,250,000

Divide by the estimated machine hours    50,000        

Predetermined overhead rate                      25

Actual machine hours                                  54,300

Multiply by predetermined overhead rate        25

The factory overhead amount applied        $ 1,357,500

b).

Actual factory overhead                              1,348,800

Less : factory overhead amount applied     1,357,500

The underapplied amount is                       $ 8700

4 0
3 years ago
Suppose an increase in demand in the market for mutual funds (a financial capital market) causes the interest rate to increase f
Cerrena [4.2K]

With the increase in the demand of the mutual funds, the quantity supplied of the mutual funds will also increase because of the increase in the rate of interest.

<u>Explanation:</u>

All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.

As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.

5 0
3 years ago
The greater the magnitude of the external benefits of production, a. ​ The larger is the deadweight loss from underproduction. b
Naddika [18.5K]

Answer:

d. ​ All of the above are true

Explanation:

External costs happen if during production or consumption of a good or a service there is a negative effect on another party. The existence of this can bring about market failure. In the presence of externalities social benefit costs are a combination of private costs and also external benefits of production.

All of the options a, n and c are true so d is the answer here.

7 0
3 years ago
On December​ 31, Mercury Corporation has the following data​available: Net Income ​$200,000 Interest expense ​20,000 Preferred d
aliina [53]

Answer:

D 34.62%

Explanation:

To get the return on commonequity we need to follow a few steps as follows:  

Here we have to let the Average total common stockholders' equity = ($550,000 + $490,000) ÷ 2 = $520,000 and (Net income $200,000 - Preferred Dividends $20,000) ÷ Average total common stockholders' equity = 34.62% .Therefore the correct answer is 34.62%.

8 0
3 years ago
Entry of new firms into monopolistically competitive industries is relatively easy because ______. Multiple choice question. exi
prisoha [69]

Entry of new firms into monopolistically competitive industries is relatively easy because capital requirements are low. Thus the correct answer is D.

<h3>What is a monopoly?</h3>

A monopoly refers to a firm that has a single authority in the market and controls the market completely. In a monopoly, there is a single rule and an absence of competition.

Monopolistic competition describes a competitive market in which a small number of sellers give clients near alternatives. It is a market system in which a large number of enterprises compete in the same industry.

Each firm runs on its own, producing comparable but production of innovative products, with no concern for what other companies are doing. These types of firms are very easy to enter and exit the market.

Therefore, option D with low capital requirements is the correct answer.

Learn more about monopoly, here:

brainly.com/question/18459447

#SPJ1

5 0
2 years ago
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