Answer:
option (d) $1.40 taxable income rather than $1.00 tax-exempt income
Explanation:
The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income
The above statement will be chosen because in this case the after tax income will be greater than the tax exempt according to the condition given in the question
Given:
Marginal Tax bracket = 25%
thus,
Taxable income = $1.40
Tax = $1.40 × 0.25 = $0.35
Therefore,
The net income = Taxable income - Tax = $1.40 - $0.35 = $1.05
and,
$1.05 > $1.00
Answer:
Year end journal entries are given below in explanation
Explanation:
a. Company provided service to customer which means that company has earned revenue
Account Dr Cr
Accounts Receivable 2200
Sales/Revenue 2200
b. Wages expense have incurred but are not paid yet. Thus, its Liability should be booked.
Wages Expense 1200
Wages payable / Liability 1200
c. The company has taken loan from the bank. Interest due on the loan is 416 but are not paid yet.
Interest Expense 416
interest Payable 416
d. The company had contract for lawn service. To book the expense of lawn service
Lawn Service Expense 520
Lawn Service Payable 520
e. The company has also made some investment. $ 220 is earned on that investment. to book the non operating income
Interest revenue receivable 220
Interest revenue - Non operating income 220
f. Salaries of Supervisor is due on 31 st December but are not paid yet.
Salaries Expense 920
Salaries payable 920
If a company sells a product at a price that is less than the cost of producing the product, then it is engaged in dumping.
<h3>What do you mean by a Product?</h3>
A product refers to any product, goods, or services intended for sale purposes. Goods, services, experiences, shopping, convenience, specialty goods, consumer goods, and industrial goods are the different types of products.
Dumping refers to when a company or country exports a product that is lower in the foreign market than the domestic export market. According to World Trade Organization, dumping is legal.
Therefore, Dumping is when a company sells a product that is lower than the cost of producing the product.
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Answer:
Explanation:
Start with your gross income. Income is on lines 7-22 of Form 1040.
Add these together to arrive at your total income.
Subtract your adjustments from your total income (also called “above-the-line deductions”)
You have your AGI.
Answer:
No, not at all. You should not go for producing that good.
Explanation:
A company do business in order to earn profits. A company earns profits by selling the product, good or service they produce or provide to the consumers. But if the cost of producing the goods is more than the profits earned due to that product, then there is no use of doing business. In order to earn profits, the cost of the product produced must be less than the price of that product. The price of the product should be set at a level which can cover all the costs incurred to produce that product. So in this question, if the price is $12 and cost is $40, then there is no need to product that product any more because this product is only incurring loss to the company.
