Answer:
passive income if taxable income is negative;active income if taxable income is positive.
Answer:
The answer is True
Explanation:
There is an inverse relationship between the price level and value of money (also known as purchasing power). An increase in the price level is the same as an decrease in the value of money.
As the price level decreases money is able to buy more goods and services and as the price level increases, money is able to buy less goods and services. inflation decrease the value of money or consumers' purchasing power.
Answer:
Total effect= -$503,080
Explanation:
Giving the following information:
Total Hardware Linens
Sales $1,080,000
Variable expenses 417,000
Contribution margin 663,000
Fixed expenses 800,000
Net operating income (loss) (137,000)
$375,000 of the fixed expenses being charged to Linens are sunk costs.
The elimination of the Linens Department will result in a 12% decrease in the sales of the Hardware Department.
Linens:
Effect on income= net operating income + fixed costs= -137,000 + 375,000= -238,000
Hardware:
Effect on income= -(2,209,000* 0.12)= -265,080
Total effect= -503,080
Answer:
COGS for 2018 : 119,300
Explanation:
We use the inventory identity to solve for Cost of Goods Sold:
The right side are the input of inventory: it can be from previous prior and purchase from the period. And the left side are the destination, it can be on stock or sold.
We plug our values into the formula and solve for COGS
100,000 + 27,000 = 7,700 + COGS
COGS = 100,000 + 27,000 - 7,700 = 119,300