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mr_godi [17]
3 years ago
9

In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties.

Justin is a calendar-year taxpayer who uses the cash method of accounting.
1. What amount of the insurance premium may Justin deduct in year 0 in the following scenario?
a) The policy covers the business property from April 1 of year 0 through March 31 of year 1.
Business
1 answer:
ratelena [41]3 years ago
8 0

Answer:

$4,800

Explanation:

The total amount of the premium can be deducted under the 12-month rule. The reason for this is that the insurance does not cover more than 12 months and can not cover any time that is outside the next year end.

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Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at th
navik [9.2K]

Answer:

b. annuities due

Explanation:

Annuities due -

It refers to the amount which need to be paid at the regular interval of time , just before the beginning of the new phase , is referred to as annuities due .

The most common example of annuities due is rent , which need to be paid after every month in the starting .

Hence , from the given information of the question ,

The correct option is annuities due.

4 0
3 years ago
NewKirk Inc.., is an unlevered firm with expected annual earnings before taxes of $21 million in perpetuity. The current require
IrinaVladis [17]

Answer:

$11,895,000

Explanation:

Expected annual earnings before tax = $21,000,000

Debt issue = $30,000,000

Interest rate = 9%

Annual Interest expenses = $30,000,000 × 9%

= $2,700,000

EBT = EBIT - Interest expenses

= $21,000,000 - $2,700,000

= $18,300,000

Net income = $18,300,000 × (1 - 35%)

= $11,895,000

Cash flows available to equity holders after recapitalization will be $11,895,000.

8 0
3 years ago
The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting th
ivanzaharov [21]

Answer: C. $250

Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.

Labour cost per day of hiring two workers = $80 x 2 = $160

Total cost per day when three

workers are hires. This includes both the fixed cost and labour cost

Total Cost = fixed cost + labor cost

= $250 + $80 x 3

= $490.

4 0
3 years ago
The Gotham Corporation regularly produces budget vs. actual data for its managers. The company is particularly sensitive to pers
Rudik [331]

Answer:

Option C Internal Control Information

Explanation:

The reason is that variance analysis is the process through which we emphasize control over costs which is solely management accounting and is not linked to financial reporting so the option B is incorrect. This information is internally generated which means saying that the information is obtained from external sources is totally incorrect. The option a is generally correct because this information is part of internal information. But Option C is more relateable here so the better option is Option C.

6 0
3 years ago
________is one of the most substantial influences on buyer behaviors and attitudes. It is the smallest, most immediate reference
scZoUnD [109]

Answer: Family.

Explanation:

The family a consumer is born into, strongly influences the way that consumer would make purchase for the rest of their lives. This occurs because in the family, the consumer is groomed to love a certain type of food, fashion and develop a specific type of taste that remains with them as long as they live.

3 0
3 years ago
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