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Dvinal [7]
3 years ago
9

Holly comes into Matthew's bicycle shop to learn about the Easy Ride bicycle she saw in his newspaper ad. Matthew shows her the

floor sample of the bicycle and says that it is designed to shift and brake more easily than her current model does. She decides to purchase one. Matthew gets a box from the back of the shop and sells it to her, stating that it contains the bicycle Holly wants. Based on his statements, which of the following is not an express warranty created by Matthew:
a. that the bike conforms to the floor sample he showed to Holly.
b. that the bike conforms to the highest industry safety standards.
c. that the bike conforms to his description of the Easy Ride.
d. that the bike conforms to his promise about the bicycle's shifting and braking ability.
Business
1 answer:
andreev551 [17]3 years ago
8 0

Answer: b. that the bike conforms to the highest industry safety standards.

Explanation:

An express warranty simply refers to the agreement by a seller of a particular product to provide a replacement or repair for a product when it's faulty within a certain period of time.

Based on his statements in the question, the option that is not an express warranty created by Matthew is that the bike conforms to the highest industry safety standards.

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Answer

$31,000

Explanation:

(c) $31,000

Explanation:

As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.

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Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.

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Explanation:

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                          Supplies Account  Cr                                 10,000

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                         Service Revenue      Cr                         3000

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Mar 31.   Salaries and Wages Expenses  Dr      2000

                                Cash      Cr                                     2000

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