Answer:
Jabeli must include = $2,220,000
Explanation:
As per the data given in the question,
Gross Income in 2019 = $2,300,000 - $80,000
= $2,220,000
So, Jabeli should include $2,220,000 in gross income and Jabeli is allowed to deduct $2,100,000 in 2019
In completed contact method of accounting :
Till the contract is completed and accepted, no revenue from the contract is recognized
In this case the purchaser may desire additional work to be done on a long term contract.
The regulations do not provide any amount of income(or loss) until the dispute is resolved.
Answer:
D. cost of goods available for sale.
Explanation:
The cost of goods available for sale, also known as the total inventory, represents the total amount of finished products that a company had in its store for selling. The calculation of costs of goods available for sale involves adding beginning stock to the net purchases.
Beginning inventory is the ending balance in the previous financial period. It is the finished product balance brought forward of the prior period. Net purchases are the purchases adjusted for discounts and purchase returns. The costs of goods available for sale minus ending inventory will equal to the costs of goods sold.
Answer:
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.
The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.
The CPI =
The price of a basket of goods in a current year ÷ Divided by the price of a basket of goods in a base year
The consumer price
Value of basket of goods in 2019 = (1000× $2) + (100× $50) + ( 500× $0.10)= 7050
Value of basket of goods in 2020= (1000× $2.50) + (100× $75) + ( 500× $$0.12)=10,060
CPI in 2020 = 10,060/7050× 100 =142.7
CPI in 2019 = 100
CPI in 2020 =142.7
CPI in 2019 = 100
The inflation rate =(142.7/100-1 ) × 100 = 42.7%
Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
Answer:
(A) "So, the government decides to reduce the tariffs on imported raw materials."
(B) "It also introduces special economic zones where certain goods can be traded tax-free."
Explanation:
Liberal economic policies usually revolve around deregulation of many governmental policies, since advocates tend to prefer a market that is as free as possible – meaning, it is free of governmental influences. Liberal economy is also a form of capitalism, and thus they would support (A) and (B) most, since it reduces barriers for businesses to operate at a profit.
They would not support (C) and (D) since these two concepts are instead socialist economic policies.
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
