Answer: $0
Explanation:
Layla qualifies for $8,000 in housing credits.
These are withdrawn at $500 for every $1,000 she earns above the wage limit of $26,500
Layla's annual income = 35,000 + 7,500
= $42,500
Amount earned above limit = 42,500 - 26,500
= $16,000
Amount of housing credit withdrawn is $500 per thousand so for $16,000, $8,000 will be withdrawn from her housing credit.
Housing credit = 8,000 - 8,000
= $0
Answer: The Southern Corporation manufactures a single product and has the following cost structure:
Explanation:
Fixed costs per year: Production$98,770 Selling and administrative$86,920 Last year, 5,810 units were produced and 5,610 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Answer:
a. Partnership XYZ's recognized gain (loss)
- recognized gain = fair market value - basis = $180,000 - $50,000 = $130,000
b. Bob's taxable gain (income)
- Bob's taxable income = $130,000 x 50% = $65,000
c. Bob's basis in the property
- Bob's new basis = $180,00 x 50% = $90,000
d. Bob's basis in the partnership
- Bob's basis in the partnership = $40,000 + $65,000 = $105,000
Answer:
c. Not accrued Disclosed.
Explanation:
The management has estimated the loss contingency of lawsuit as reasonably possible. The Contingent liability is reasonably possible then it will be disclosed in the Notes to Financial Statements and not accrued in Balance sheet. If the contingent liability is probable then the accrual needs to be made in the Balance Sheet.
