1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vodka [1.7K]
3 years ago
9

Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wan

ted to make money. Logan’s horse ranch has lost money every year for the past 5 years (including this year), but Logan has made some changes to business operations, including hiring a consultant and increasing his prices. Logan anticipates that as a result of these changes, his horse ranch will generate a profit in the next year or two. This year, Logan hired his brother, Luke, to work at the horse ranch. Logan pays Luke $500/hr to clean the horse stalls. Logan also hired his best friend, Lucy, to do Logan’s grocery shopping and other personal errands. He pays Lucy $15/hr. Which of the following is most accurate?
a. Logan cannot deduct any of the costs associated with the horse ranch because the horse ranch would be classified as a hobby, not a business
b. Logan can deduct the full salary paid to Luke because Luke works in Logan’s horse ranch business
c. Logan can deduct the full salary paid to Lucy because the amount of the expense is reasonable
d. Logan can deduct the full salary paid to Lucy because grocery shopping is ordinary and necessary
e. None of the above are correct
Business
1 answer:
Mama L [17]3 years ago
3 0

Answer:

Logan Horse Ranch

The most accurate is:

e. None of the above are correct

Explanation:

Logan's payment to his brother, Luke, of $500 per hour, is not a reasonable business expense that can be deductible.  Surely, $500 per hour is not a going rate for cleaning the horse stalls per hour.  With Lucy doing grocery shopping for Logan, it does not resonate like an ordinary and necessary expense for the business. Therefore, options A to D are not correct.  This leaves only option E as the most accurate.

You might be interested in
Which one of the following is an example of systematic risk?
lukranit [14]

Answer: Option B

                           

Explanation: Systematic risk points to the uncertainty of the industry or market segment as a whole. Systematic risk, often recognized as "undiversifiable danger," "fluctuation," or "market risk," affects not only a single share or sector, but the market at large. It is both uncertain and impossible to remove this type of risk altogether.

Thus, from the above we can conclude that the correct option is B as the changes in tax rates impacts the whole industry. Also such changes are in the hands of government therefore,. these are both unpredictable and unavoidable.

6 0
3 years ago
Assuming purchase costs are declining and a periodic inventory system is used, determine the statements below which correctly de
Sonbull [250]

Answer:

a. In a situation where prices are declining, companies using LIFO will report the smallest cost of goods sold.

Explanation:

The last in first out method (LIFO) generally results in less net income because Cost of Goods Sold is greater. The reason is that normally prices increase with time due to inflation.

However, the opposite is true when prices are falling, LIFO will report the smallest cost of goods sold.

<u>The reason is the last items are assumed to be sold first, hence the figure of cost of goods sold will be smaller since the costs are smaller compared to the stock bought previously which are more expensive. </u>

7 0
3 years ago
Read 2 more answers
Kevin is a 74-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.
Diano4ka-milaya [45]

Answer:

Employed, Unemployed, Not in the labor force, unemployed

Explanation:

Kevin is a 74-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.

KEVIN IS EMPLOYED

Maria is a 25-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.

MARIA IS UNEMPLOYED

Rajiv is a 45-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.

RAJIV IS NOT IN THE LABOR FORCE

Ana is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several

ANA IS UNEMPLOYED

4 0
3 years ago
Read 2 more answers
When consumers need to purchase a refrigerator, they usually evaluate different models across a set of features or characteristi
irinina [24]

Answer:

The correct answer is attribute-based evaluation.

Explanation:

The products are susceptible to an analysis of the tangible and intangible attributes that make up what can be termed as their personality.

This analysis is carried out through the evaluation of a series of factors that allow dissection of the product, starting from the central elements to the complementary ones, so that in view of both ours and those of the competition, we can elaborate the marketing strategy that allows us to position the product in the market in the most favorable way. In any case, the different factors that we include below have to serve us only as a script or reference, since depending on the product that we commercialize other totally different attributes will be studied.

4 0
3 years ago
The labor-force participation rate is? a. 47.1 percent. b. 50.2 percent. c. 65.9 percent. d. 70.2 percent.
il63 [147K]

The labor-force participation rate is 70.2 percent
therefore the correct option is D

What is Labor force?
The labor force is made up of both employed people and unemployed people, and the unemployment rate is calculated by dividing the number of jobless people by the total labor force. If a person works for compensation or runs their own business for at least an hour any day of the week, including the twelfth of the month, they are regarded to be employed. If a person works for compensation or runs their own business for at least an hour any day of the week, including the twelfth of the month, they are regarded to be employed. In a family-run firm, individuals who put in at least fifteen hours of unpaid work are also regarded as employees. Employed people include those who are temporarily away from their work due to a vacation, illness, inclement weather, or other personal reasons. Those who worked full-time (35 hours or more during the survey week) and those who worked part-time are both considered to be in the employed category.

To learn more about Labor Force
brainly.com/question/24939447

#SPJ4

Complete Question
The labor-force participation rate is? a. 47.1 percent. b. 50.2 percent. c. 65.9 percent. d. 70.2 percent, e. none of the above

4 0
2 years ago
Other questions:
  • June sales were $30,000, while projected sales for July and August were $52,000 and $74,000, respectively. Sales are 60% cash an
    14·1 answer
  • In Maricaibo, incandescent lightbulbs are being replaced with fluorescent lightbulbs, which have fewer negative effects and many
    14·2 answers
  • Before the approving signature is made on a check the signer should verify that the?
    8·1 answer
  • Peppy is confident that Peppy's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Peppy h
    7·1 answer
  • The key difference between mediation and arbitration is: (A) A mediator is constrained to work with the final offers given by th
    8·1 answer
  • A ________ is a tax on the market value of oil produced in the state.
    8·1 answer
  • You are an industry You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 5Q.
    10·1 answer
  • Select the most appropriate answer about bringing components from other continents.
    12·1 answer
  • What cycle time would match capacity and demand if demand is 161 units a day, there are 2 shift(s) of 446 minutes each, and work
    9·1 answer
  • You have set up an appointment for an in-home sales presentation with mrs. Fernandez, who expressed interest in the medicare pla
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!