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hichkok12 [17]
3 years ago
9

James is employed by a large corporation with 400 employees. The corporation provides its employees with a no-cost gym membershi

p in their building. The value of the membership is $60/month . The gym is used exclusively by the employees and their families. How much, if any, must James include in his yearly gross income related to this fringe benefit?
$0.

$60.

$600.

$720.
Business
1 answer:
Ostrovityanka [42]3 years ago
7 0

Answer:

$0

Explanation:

James should not include any amount related to this fringe benefit in his yearly gross income. Since the employer provides the benefit in their own premises, and the gym is of exclusive use of employees and their families, employees are exempt of including their gym fees in their yearly gross income. If this was a public gym, then the full amount of the yearly membership would have to be included.

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Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities wil
Irina-Kira [14]

Answer:

Orange Co.'s budget will include the cost of production, which is made up of raw materials, direct labor, and manufacturing overhead.  The above cost of production and the accompanying items will not be found in the budget of Pineapple Company.  The latter's budget will focus on purchase of goods for sale (instead of raw materials) and inventories of finished goods (instead of raw materials and work in process).  Orange Co. determines its product cost per unit from the cost of production divided by the quantity produced.  Pineapple Company's product cost is based on the purchase price of goods, which includes the manufacturer's profit.

Explanation:

The operations and accounting for the cost of production of Orange Co. will be different from Pineapple Company's.  The difference is a reflection of their statuses as manufacturer and merchandiser respectively.  Orange Co. manufactures and sells goods while Pineapple Company sell manufactured goods.

8 0
3 years ago
​Zane's Vanes is a service that restores old weather vanes. Zane has just spent​ $125 purchasing a​ 1920s-era weather vane which
VladimirAG [237]

Answer:

The marginal benefit from selling the vane without restoring it is $200.

Explanation:

Marginal benefits are the extra income a company can get from selling one additional unit of production.

Zane had already spent $250 in purchasing the vane and the restoration process.

Zane has two options:

  1. Sell the vane as it is for $200.
  2. Keep restoring the vane, spend $200 more and sell the vane for $500.

If Zane decides to sell the vane as it is, his marginal benefit will be $200. That would not be enough to cover his costs, this transaction will result in a $50 loss.

If Zane decides to continue the restoration, then his marginal costs will be $200 extra, but his marginal benefit would be $500. If he chose this option he could end up earning a $50 profit.

8 0
3 years ago
List one thing you SHOULD do if your car loan suddenly becomes too expensive.
Sphinxa [80]

Answer:

Modify Your Auto Loan.

Refinance Your Vehicle Loan.

Trade-in Your Car.

Let Someone Else Assume Your Loan.

Sell Your Vehicle.

Turn the Keys In.

Let Your Car Be Repossessed.

File for Bankruptcy.

5 0
2 years ago
You currently own 100 shares of stock in Beverly Brothers Inc. The stock currently trades at $120 a share. The company is contem
Gwar [14]

Answer:

No option is correct, since you will have 200 shares and each share should be worth around $60.

Explanation:

If the 2-for-1 stock split takes place then you will have 200 shares instead of 100. For every 1 share that you currently own, the corporation will issue another share.

Since the price of the shares was $120 before the stock split, after the stock split the price will be divided by two (the same proportion). So each new share will cost approximately $60.

In order for option 2 to be correct, the stock spit should have been 3-for-1.

8 0
3 years ago
Property taxes on a manufacturing facility are classified as:
vesna_86 [32]

Property taxes on manufacturing facility are classified as manufacturing costs. Manufacturing cost is being defined as the overall cost from the consumed resources in which are used when making a product that is to be laid out and to be serve to the consumers. 

4 0
3 years ago
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