Answer:
$600
Explanation:
In this situation, first we have to know that tax levy on assessed value.
<u>Computation of tax rate:</u>
Appraised Value = $25,000
Assessed value = $20,000
Tax = $300
Tax rate = ($300 / $20,000) x 100 = 1.5%
Assume Appraised Value = $45,000
Assume Assessed value = $40,000
Calculation of tax value = Assessed value x tax rate
= $40,000 x 1.5%
= $600
Answer and Explanation:
The Journal entry is shown below:-
Cash A/c Dr, $20,000
Accounts Receivables A/c Dr, $140,000
($145,000 - $5,000)
Inventory A/c Dr, $101,700
Equipment A/c Dr, $81,200.
To Allowance for doubtful Accounts $4,400
To Payne's Capital A/c $338,500
(Being assets contributed by partner in business is recorded)
For recording the assets contributed by partner in business we simply debited the cash account, accounts Receivables, Inventory and Equipment as increase the assets while we credited the Allowance for doubtful Accounts as it decreasing the assets and Payne's Capital as increasing the stockholder equity.
Answer:
B) fit for the ordinary purpose for which such goods are used.
Explanation:
An implied warranty of merchantability means that the products sold should fulfill an ordinary buyer's expectations and should be fit for the purpose intended.
All products carry an implied warranty of merchantability unless expressly disclaimed or identified as a sale "with all faults" or "as is".
Answer: $670
Explanation:
Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70
Then, the price of RADM 30 call option contract will be calculated as;
= $33.7 - $30
= $3.70
The net gain on one RADM 30 call option will then be:
= $3.70 - $0.35
= $3.35.
Therefore, the net gain on 2 RADM30 call options will be:
= $3.35 × 2
= $6.70
Since there are 100 shares in a option contract, the gain will be:
= $6.70 × 100
= $670
