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3 years ago

What is an advantage of selling consumable items

2 answers:

5 0

Selling consumable items leads to continual purchase of the commodity. For instance, consumable products like milk and cereal will be purchased frequently. Something like a computer, however, will not be purchased as often. Consumable items have the advantage of constant income, whereas a product like an iPhone may spike in purchases when first released and then decrease as time goes on.

Anna71 [15]3 years ago

4 0

Consumers are constantly buying and eating over and over again.

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The soccer team is planning to sell health bars for a fundraiser. the prices of purchasing health bars from two different compan

stepladder [879]

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3 years ago

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Overheating of a coil spring type of pressure plate will cause which of the following to happen?

EleoNora [17]

Wearing out of the release levers

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3 years ago

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A corporation distributes a piece of personal property to a shareholder, in complete liquidation. The corporation had a basis of

Rudiy27

Answer:

The corporation must recognize a $10,000 loss.

Explanation:

The last activity that a corporation must perform upon liquidation is to distribute property, assets or cash to its shareholders. The adjusted basis for any property or assets handed out in a complete liquidation is the fair market value of the property or assets.

In this case, the corporation's property had a basis of $40,000 but a fair market value of $30,000, so the distribution was done using the fair market value of $30,000.

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3 years ago

On July 1, 2019, Pharoah Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $16,000 salva

Fantom [35]

Answer:

journal entry to record depreciation on December 31, 2019 is

Debit Depreciation $8,000

Credit Accumulated Depreciation $8,000

journal entry to record depreciation on December 31, 2022.

Debit Depreciation $5,000

Credit Accumulated Depreciation $5,000

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,

Depreciation = (Cost - Salvage value)/Estimated useful life

Annual depreciation = (80000 - 16000)/8

= $8,000

Between July 1, 2019 and January 1 , 2022 is 2.5 years

Carrying amount of asset = $80,000 - 2.5($8,000)

= $60,000

If the company estimated the remaining useful life to be 10 years beyond December 31, 2022 and the salvage value is estimated to be $5,000, then

Depreciation = ($60,000 - $5,000)/11

= $5,000

8 0

4 years ago

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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

Alenkasestr [34]

Answer:

a. $44,200

b. $44,684

Explanation:

To calculate after-tax costs we just need to deduct the tax saving amount from the pre-tax amount. The tax saving amount can be calculated bt multiplying the pre-tax amount into the tax rate

Requirement A (If she pays the $65,000 in December)

After-tax cost = Pre tax cost - PV of tax saving

After-tax cost = 65,000 - 20,800

After-tax cost = $44,200

working

Tax saving = $65,000 x 32%

Tax saving = $20,800

Requirement B (If she pays the $65,000 in January)

After tax cost = $65,000 - $20,315

After tax cost = $44,684

working

Tax saving = $65,000 x 35%

Tax saving = $22,750

Pv of tax saving = $22,750 x 0.893

Pv of tax saving = $20,316

7 0

3 years ago