Answer:
$13,400
Explanation:
Data provided in the question:
Tax basis of marketable securities = $79,600
Amount for which securities sold to daughter = $60,000
Amount for which daughter sold the securities = $93,000
Now,
Mrs. Beld disallowed loss on the related party sale to her daughter
= Tax basis of marketable securities - Amount for which securities sold to daughter
= $79,600 - $60,000
= $19,600
Realized gain by her daughter = $93,000 - $60,000
= $33,000
Therefore,
The daughter's gain recognized on sale
= Realized gain by her daughter - Mrs. Beld disallowed loss
= $33,000 - $19,600
= $13,400
Answer:
d.$18,900
Explanation:
Gross Profit is the net of Sales value and production cost in the period for the units sold. Under absorption costing all the direct and indirect costs incurred in the production of products are included in the total production cost. As the cost is available for 100 units produced we need to calculate the cost of 90 unit and deduct this cost from the sales value to determine the gross profit and then deduct the operating expenses to calculate the operating income.
Sales (90 units) $90,000
Less: Production costs:
Direct materials ( $40,000 x 90/100 ) $36,000
Direct labor ( 20,000 x 90/100 ) $18,000
Variable factory overhead ( 2,000 x 90/100 ) $1,800
Fixed factory overhead ( 7,000 x 90/100 ) <u>$6,300</u>
Total Production cost <u>($62,100)</u>
Gross Profit $27,900
Less Operating expenses:
Variable operating expenses $8,000
Fixed operating expenses $1,000
<u>($9,000)</u>
Operating Income <u>$18,900</u>
Net income serves as the beginning point for the indirect technique of preparing the operating activities section.
<h3>What does "net income" mean?</h3>
Net income is the amount of money left over after all costs, such as salaries and wages, the cost of commodities or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.
<h3>How is net income demonstrated?</h3>
Operating income for the business was $23,000 after operating costs of $12,500. After deducting interest expense of $1,500 and adding interest income of $1,700, ABYZ arrived at a net income before taxes of $23,200.
<h3>What is net income post-tax?</h3>
A person's income after taxes and deductions is referred to as their net income.
learn more about net income here <u>brainly.com/question/15530787</u>
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Answer:
PED= 0.1571
Explanation:
The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:
Price Elasticity of Demand = Percentage change in Q/ Percentage change in P
In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:
%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%
%Change in quantity is= -6%
PED= -6%/38.17%
In absolute value:
PED= 0.1571
If the PED is less than 1 then gasoline is considered as inelastic.
