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Vladimir79 [104]
3 years ago
8

Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information re

garding Year 6, compute his net self-employment income (for SE tax purposes) for Year 6.Gross receipts $100,000Cost of Goods Sold 49,000Utilities 6,000Real estate taxes 1,000Gain on sale of business truck 2,000Depreciation expense 5,000Section 179 expense 1,000Mortgage interest on building 7,000Contributions to Keogh retirement plan 2,000Net operating loss (NOL) from Year 5 10,000a. $24,000b. $16,000c. $31,000d. $14,000
Business
1 answer:
11Alexandr11 [23.1K]3 years ago
7 0

Answer:

c. $31,000

Explanation:

Calculation for the Net self-employment income

Gross receipts $100,000

Less Cost of goods sold ($49,000)

Less Depreciation expense ($5,000)

Less Utilities($6,000)

Less Real estate taxes ($1,000)

Less Sec. 179 expense ($1,000)

Less Mortgage interest ($7,000)

Net self-employment income $ 31,000

Therefore the Net self-employment income will be $ 31,000

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well to be honest man i dont know

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3 years ago
JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $2
Anettt [7]

Answer:Net working capital = $152,500

Explanation:

Net working capital = CA– CL

Where CA= Current Assets = Cash + Inventory + Accounts Receivable

and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes

CA=$54, 000 + $184,000 + $ 219,000 =$457,000

Current liabilities = Account payable + Notes payable + accrued wages and taxes

CL = $134,000 + $129,000 + $41,500 = $304,500

Net working capital = Current assets – Current liabilities

Net working capital = $457,000 – $304,500=  $152,500

Net working capital = $152,500

5 0
3 years ago
The lender usually has the right to collect the principal, but is NOT allowed to collect the interest if the loan is:
Elena-2011 [213]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) For consumer purposes

b) For commercial purposes

c) Usurious

d) An online contract

And the correct answer is the option C: Usurious.

Explanation:

To begin with, in the area of law, the term known as <em>"Usury" </em>is refer to the practice that focuses on making the lender richer in unethical ways so therefore that this practice is considered to be the one that makes inmoral monetary loans that try to affect the borrower in order to benefit the lender. One example of the use of this term could be the case in where the lender charges or try to charges a higher interest rate to the borrower than the one that is prohibited by law as a maximun rate.

3 0
3 years ago
A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There a
LenaWriter [7]

Answer:

Bond,treasury

Explanation:

A bond refers to the contract between borrower and lender stipulating that the borrower must pay periodic interests and principal on specified dates .

The interest is also known as coupon payment has fixed  rate usually  quoted in the bond agreement which could be paid annually or semi-annually to te lenders.

Treasury refers to the bond issued by the national government such as the U.S government and carries a lower rate of return as the risk attached too is low ,hence lower risk brings about lower return since the government is not likely to default in discharging its obligations

8 0
3 years ago
beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The
gregori [183]

Answer:

RA=11.6%

Explanation:

RA=Rf+(Rm-Rf)Ba

RA=?

Rf=5.25%

Rm=12.5%

Ba=.88

RA=5.25%+(12.5%-5.25%).88

6 0
3 years ago
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