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konstantin123 [22]
3 years ago
13

Black Acres Apartment, Inc needs to compute taxable income (TI) for the preceding year and wants your assistance. The effective

gross income (EGI) was $52,000; operating expenses were $19,000; $2,000 was put into a fund for future replacement of stoves and refrigerators; debt service was $26,662, of which $25,126 was interest; and the deprecation deduction was $17,000. Compute the taxable income from operations:
Business
1 answer:
Dovator [93]3 years ago
7 0

Answer:

($9,126)

Explanation:

Computation for the taxable income from operations:

Effective Gross Income $52,000

Less: Operating Expenses($19,000)

Less: Capital Expenditures($2,000)

Net Operating Income $31,000

($52,000-$19,000-$2,000)

Add: CAPX $2,000

Less: Interest on Debt Service($25,126)

Less: Tax Deprecation($17,000)

Taxable Income (Loss)$(9,126)

($31,000+$2,000-$25,126-$17,000)

Therefore the taxable income from operations: is $(9,126)

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On June 1, 2017, Pharoah Company was started with an initial investment in the company of $22,350 cash. Here are the assets, lia
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Answer:

                            Pharaoh Company

                             Income statement  

                 For the year ended June 30, 2017  

Revenue & Gains                                              Amount

Service Revenue                                               $7,910

Total revenue & gains (A)                                 $7,910

Expense and losses:

Salaries and wages expense         $1,810

Advertising expense                       $400

Supplies expense                            $2,370

Utilities expense                              $270

Maintenance and repair expense  $630

Total expense (B)                                            <u>$5,480</u>

Net Income (A - B)                                          <u>$2,430</u>

6 0
3 years ago
Windsor Company took a physical inventory on December 31 and determined that goods costing $191,500 were on hand. Not included i
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Answer:

$237,630

Explanation:

Windsor report as its December 31 inventory:

= Inventory in hand as per physical count + Goods purchased from P corporation under FOB shipping basis + Cost of goods sold to A company under FOB destination basis

= $191,500 + $24,510 + $21,620

= $237,630

Therefore, the amount to be reported by Windsor company is $237,630.

7 0
3 years ago
Adams County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their ow
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Explain this better plz
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3 years ago
If the demand for steak (a normal good) shifts to the left, the most likely reason is that:______.
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If the demand for steak (a normal good) shifts to the left, the most likely reason is that consumer income has fallen.

<h3>What is a normal good?</h3>

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls.

The demand curve shows the relationship between price and quantity demanded. A shift to the left of the demand curve indicates that demand has decreased.

To learn more about normal goods, please check: brainly.com/question/2934596

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4 0
1 year ago
On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by
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Answer:

Explanation:

a)

Date Account Titles and Explanation Debit Credit

January 1, 2020 Land $360,000.00

Discount on notes payable $246,621.00

Notes payable $ 606,621.00

(To record purchase of land by issuing note payable)

PV of $606,621 discounted at 11% =606,621/(1.11)^5 = $ 360,000

2.

Computation of the discount on notes payable:

Maturity value $560,000

Present value of $560,000 due in 8 years at 11% = $560,000 * 0.43393 = $ 243,000

Present value of $39,200 payable annually for 8 years at 11% annually—$39,200 * 5.14612 = $ 201,728

Present value of the note = $ 243,000 + $ 201,728 = $ 444,728

Discount = $ 560,000 - $ 444,728 = $ 115,272

Date Account Titles and Explanation Debit Credit

January 1, 2020 Equipment $444,728.00

Discount on notes payable $115,272.00

Notes payable $ 560,000.00

(To record purchase of equipment by issuing note payable)

b)

1.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($ 360,000*11%) $39,600

Discount on notes payable $39,600

(To record the interest expense recorded and discount amortized)

2.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($444,728 * 11%) $48,920

Discount on notes payable $9,720

Interest Payable ( $ 560,000 * 7%) $39,200

(To record the interest expense recorded)

7 0
3 years ago
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