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Elodia [21]
3 years ago
7

Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proc

eeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year
Business
1 answer:
Naily [24]3 years ago
3 0

Answer:

the maximum amount is $3,150

Explanation:

The computation of the maximum amount that could be used as an interest expenses while calculating the item deductions for the present year is shown below:

Here we considered only the home mortgage interest i.e. qualified i.e. $3,500

The other things would not be considered like interest on automobile loan, interest on bank loan etc as it is not allowed

Therefore the maximum amount is $3,150

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Carper Company is considering a capital investment of $390,000 in additional productive facilities. The new machinery is expecte
VARVARA [1.3K]

Answer:

(1) Payback period is 4.588 years or 4 years and 215 days

(2) 5.13%

Explanation:

(1)

Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.

Payback period = Initial Investment / Annual net cash flow

Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days

(2)

As per given data

Net Income = $20,000

Initial Investment = $390,000

Annual rate of return is the ration of net income to the investment made in the project.

Annual rate of return = Annual net Income / Initial Investment  

Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%

8 0
3 years ago
Read 2 more answers
Bailey Corp. has the following information: Beginning Inventory (Jan 1) Ending Inventory (Dec 31) Raw Materials Inventory $ 25,3
Amanda [17]

Answer:

See below

Explanation:

The cost of goods manufactured is computed as;

Beginning inventory

$25,300

Add ;

Raw materials purchases

$106,100

Cost of goods available for sale

$131,400

Less:

Ending inventory

$39,100

Cost of goods sold

$92,300

Add:

Beginning work in process

$24,100

Less:

Ending work in process

($26,600)

Cost of goods manufactured

$89,800

4 0
3 years ago
Which of these is a good?
Llana [10]
<h2>A $4.00 for car wash is good</h2>

Explanation:

Option A: A fancy hair cut option is given but it is not associated with any of the price. So we cannot say it is good or worth for the money.  

Option B: It seems to be valid. But when we consider all the given options, there are better options than this.

Option C: Rusted means a brown layer formed on the body of the car. So we cannot say it is good. So this option too is invalid.

Option D: Normally car wash costs $10. It is worth to do a complete car wash with $4.00. This option is the best choice.

4 0
3 years ago
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
Serggg [28]

Answer:

A. $800

B. $1,000

C. a. The quantity of money demanded decreases as the interest rate rises

Explanation:

A. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 8%

Opportunity Cost for 8% interest rate=$8%*$10,000

Opportunity Cost for 8% interest rate= $800

Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 8% will be $800

B. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 10%

Opportunity Cost for 10% interest rate =10%*$10,000

Opportunity Cost for 10% interest rate = $1,000

Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 10% will be $1,000

C. Based on the information given the previous analysis suggest about for money: THE QUANTITY OF MONEY DEMANDED DECREASES AS THE INTEREST RATE RISES.

6 0
3 years ago
The proper order of the following steps in the accounting cycle is prepare unadjusted trial balance, journalize transactions, po
photoshop1234 [79]

Answer:

<em>The Accounting Cycle is as follows:</em>

<em>1. Transactions are analyzed and recorded in the journal. </em>

<em>2. Transactions are posted to the ledger.</em>

<em>3. An unadjusted trial balance is prepared. </em>

<em>4. Adjustment data are asssembled and analyzed. </em>

<em>5. An optional end-of-period spreadsheet is prepared. </em>

<em>6. Adjusting entries are journalized and posted to the ledger. </em>

<em>7. An adjusted trial balance is prepared. </em>

<em>8. Financial statements are prepared. </em>

<em>9. Closing entries are journalized and posted to the ledger. </em>

<em>10. A post-closing trial balance is prepared. </em>

<em />

8 0
3 years ago
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