Answer:
Explanation:
The alimony given is a tax-deductible expense for the person paying the alimony if a divorce is finalized before 2019 and before Jan 31, 2018.
Alimony payments made for divorce implemented after Jan 31, 2018, are said not to be tax-deductible with regards to the amended law.
Therefore in the scenario presented, Nancy pays alimony to Nathan will be tax-deductible income to him because the divorce was finalized in the year 2016 as it is before Jan 31, 2018.
If they have been divorced and still they continue to stay together during 2016 and 2017, then alimony payments are tax-deductible.
Had it been that they have not filed for divorce, only that they are separated but however still jointly live together, then they both file for tax return jointly or separately together due to the sense that they are considered as a married couple for the entire year.
In a case whereby the couple is divorced in 2019, then alimony payments received are not tax-deductible with regards to the current law.
Answer:
300 radials
Explanation:
Divide projected sales by total number of seasons
That is,
Projected sales=1200
Seasons =4
Therefore,
1200 / 4 = 300
radials planned to be sold each season next year equals 300
Answer: a. a credit to the allowance for $7,500
Explanation:
Estimated Bad Debt = Balance on Account receivable x bad Debt loss rate = $250,000 x 4% = $10,000
Allowance for doubtful accounts with a credit balance of $2,500
Allowance for Bad debts expense =Estimated Bad Debt - Credit balance Allowance for doubtful accounts = $10,000 - $2,500 = $7,500
Account titles and explanation Debit Credit
Bad Debt Expense $7,500
Allowance for Doubtful Accounts $7,500
Answer:
The company must sell $300,000 to earn a target profit of $90,000.
Explanation:
Contribution margin per unit = Sales price per unit - Variable costs per unit. = $60.00 - $15.00 = $45
Contribution margin ratio = Contribution margin per unit / Selling price per unit = $45 / $65 = 0.75, or 75%
Total Fixed Costs = $135,000
Target profit = $90,000
Sales in dollars to earn the target profit = (Fixed cost + Targeted profit) / Contribution margin ratio = ($135,000 + $90,000) / 75% = $300,000
Therefore, the company must sell $300,000 to earn a target profit of $90,000.
Answer:
Long term liabilities.
Explanation:
This can be easily or mostly be used in companies and also firms. In most cases they are been tagged a non-current liability.
They are generally defined to be obligations that are not been settled for/paid off in the current year or accounting period. Therefore, debts of this kind are not due within a year. Dept of this kind ranges from notes payable to bonds payable, also mortgages and are also seen as leases in a company settings.
In as much as this is not good for a company's financial health, investors and creditors see how the company is financed through this. Current obligations are seen to be more risky than non-current debts because they will need to be paid sooner.