Answer:
The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.
Answer:
Materials:
price 800U
quantity 510 F
Labor:
rate 1,860 F
efficiency 1,740 U
Explanation:
DIRECT MATERIALS VARIANCES
std cost $5.10
actual cost $5.30
quantity 4,000
price variance $(800.00)
std quantity 4000.00
actual quantity 3900.00
std cost $5.10
quantity variance $510.00
DIRECT LABOR VARIANCES
std rate $8.70
actual rate $8.40
actual hours 6,200
rate variance $1,860.00
std hours 6000.00
actual hours 6200.00
std rate $8.70
efficiency variance $(1,740.00)
Answer:
Which party to the exchange must pay boot to make the exchange work?
- Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.
How much boot must be paid?
- $90,000 - $77,500 = $12,500
Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
- Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500
Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
- Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
Answer:
$1,600
Explanation:
Calculation to determine By how much will the income from the second job increase her tax liability
Based on the information given she had the amount of $10,000 as the additional taxable income which means that $9,000 out of the $10,000 will be taxed at 15% while the remaining $1,000 ($10,000-$9,000) will be taxed at 25% according to the single tax rate schedule
Increase in tax liability =($9,000 × 15%) + ($1,000 × 25%)
Increase in tax liability= $1,600
Therefore By how much will the income from the second job increase her tax liability is $1,600