Answer:
No, the tax treatment will not be same.
All the amounts received by Billy, are during the course of business, and are related to the damages caused to business, and to him personally, and under tax these all amounts are tax free:
Amount received for personal injury of $100,000 is tax free as is related to expense of his personal recovery.
The amount of $50,000 and $15,000 though received from different sources but is for the same purpose of loss of income and destruction caused to business.
Whereas, amber is an employee, she is not the owner and therefore, all of the benefits received from her workplace are taxable.
As the policy was purchased by the employer and therefore, any amount received from such policy by amber will be taxable as a perquisite received from employer.
Answer:
1. Cash (Dr.) $100,000
Unassigned grant (Cr.) $100,000
2. Computers (Dr.) $10,000
Cash (Cr.) $10,000
3. Salaries and Wages (Dr.) $6,000
Cash (Cr.) $6,000
4. Cash (Dr.) $24,000
Long term bank loan - Notes payable (Cr.) $24,000
5. Automobile (Dr.) $24,000
Cash (Cr.) $24,000
6. Interest Expense (Dr.) $200
Cash (Cr.) $200
7. no entry
Explanation:
Balance Sheet
Assets:
Cash $90,000
Computer $10,000
Automobile $24,000
Total Assets $124,000
Liabilities:
Notes Payable $24,000
Equity:
Grant Received $100,000
Total Equity and Liability $124,000
Answer:
There are three types: Earned, Capital gains and passive
Explanation:
Earned: Requires you to trade time for money but can be earned quickly.
Capital Gains: Can be earned without ACTIVE work but takes a longer time. You get this by selling something/
Passive: Can be earned without ACTIVE work but takes a longer time. You get this after just one and investment that pays steadily like stock dividends.
For example, you could earn earned income from working a job, capital gains from buying and then selling a stock and passive income from stock dividends.
Answer:
The total cash receipts is $31,000.
Explanation:
Sales Revenue : The revenue which is earned through selling of products and services to the customer during a particular year is known as sales revenue
Interest Revenue: The revenue which is earned through interest is called interest revenue.
For computing the total cash receipts, the equation is shown below:
= Beginning balance of Accounts receivable + Sales Revenue - Closing balance of Accounts Receivable + Interest Revenue
= $13,400 + $43,000 - $26,000 + 600
= $31,000
Hence, the total cash receipts is $31,000
Answer:
$1,380
Explanation:
The computation of the average cost per unit is shown below:
= (Beginning inventory units × price per unit + first purchase inventory units × price per unit + second purchase inventory units × price per unit + third purchase inventory units × price per unit) ÷ (Beginning inventory units + first purchase inventory units + second purchase inventory units + third purchase inventory units)
= (5 units × $61 + 15 units × $63 + 10 units × $74 + 10 units × $77) ÷ (5 units + 15 units + 10 units + 10 units)
= ($305 + $945 + $740 + $770 ) ÷ (40 units)
= ($2,760 units) ÷ (40 units)
= $69
Now the cost of goods sold equals to
= (Inventory units × average cost per unit )
= 20 units × $69 per unit
= $1,380
Since there are total 40 units out of which 20 units are sold, so the remaining units i.e 20 units would be consider as cost of goods sold