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Nataly [62]
2 years ago
7

Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction

in each of the following situations and explain your solution.
A. Michelle was stopped for speeding. She paid a fine of $125 for speeding, including $80 for legal advice in connection with the ticket.
B. Michelle paid $795 to reserve a parking place for her food truck for the fall football season outside the local football arena. Michelle also paid $140 for tickets to a game for her children.
C. Michelle provided a candidate with free advertising painted on her truck during the candidate’s campaign for city council. Michelle paid $680 to have the ad prepared and an additional $380 to have the ad removed from the truck after the candidate lost the election.
Business
1 answer:
Snezhnost [94]2 years ago
6 0

Answer:

A. $80

B. $795

C. $0

Explanation:

Only expenses that can be directly attributed to the business are deductible.

Personal expenses will not be deductible.

A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.

B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.

C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.

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Identify whether each the following transactions is a primary market or a secondary market transaction: Jim Henry bought 500 sha
slamgirl [31]

Answer:

Jim Henry bought 500 shares of I.B.M. through a broker.

  • SECONDARY MARKET TRANSACTION

Peggy White bought 500 shares of Apple from another investor.

  • SECONDARY MARKET TRANSACTION

New York Life Insurance Co. bought 500,000 shares of Tioga Corp when the company issued the stock.

  • PRIMARY MARKET TRANSACTION

Primary market transactions that place when an investor purchases securities at the time the corporation or entity issued them, e.g. if you purchased Amazon's stocks at their IPO (or any other time new stocks were issued), it was a primary market transaction. But if you purchased Amazon's stocks at any other time, it is a secondary market transaction. Almost all the transactions carried out everyday are secondary market transactions.

5 0
3 years ago
Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a
jonny [76]

Answer:

Cash flows from investing activities is $653,200.

Explanation:

XYZ Company

Statement of cash flows (extract)

Proceed from sale of equipment ($80,000 - $34,000)               $46,000

Purchase of vehicle                                                                       $103,000

Proceed from sale of land                                                            $410,000

Proceed from sale of long-term investments in stock                 $94,200

Cash flows from investing activities                                        $653,200

8 0
2 years ago
BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimensi
Fantom [35]

Answer:

The correct answer is sensory.

Explanation:

Sensory marketing is widely used and also highly recommended for those companies that want to be exclusive, original and convey a different and positive customer experience. Its objective is that the client leaves satisfied and with a good memory that is not easily erased from his memory.

As human beings we are endowed with five senses, six if as some do we have intuition. Next we will see how marketing plays with us through our senses:

7 0
3 years ago
The price of houses in Bellevue area has been increasing by 10% since last year, according to Zillow.coma.) This is a normative
Andre45 [30]

Answer:

option D  This is a positive statement

Explanation:

According to the Positive statement , it is factual and simply describing in nature.

The statement is not judgmental in nature.

While the Normative statement is judgmental in nature

Also, normative statement specifies what ought to be done.

In the statement given in the question, fact is providing about the Bellevue area by Zillow.com.

4 0
2 years ago
A bond that pays interest semiannually has a price of $975.11 and a semiannual coupon payment of $28.25. If the par value is $1,
Roman55 [17]

Answer:

5.79%

Explanation:

For the computation of current yield first we need to find the annual coupon is shown below:-

Annual Coupon = Coupon payment × Semi annual

= $28.25 × 2

= $56.5

Current Yield = Annual Coupon ÷ Market Price

= $56.5 ÷ $975.11

= 0.0579

or

= 5.79%

Therefore for computing the current yield we simply applied the above formula so that the correct rate could come

4 0
3 years ago
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