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
Finger [1]
3 years ago
13

Monty loaned his friend Ned $12,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remain

ing balance was $9,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $9,000 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $3,600 and taxable income of $33,250. During the current year, Ned paid Monty $8,100 in satisfaction of the debt.
Determine Monty's tax treatment for the $8,100 received in the current year.

The nonbusiness bad debt of $9,000 would have been reported as a short-term capital loss , and $_________ would be included in Monty's gross income.
Business
1 answer:
irinina [24]3 years ago
7 0

Answer:

$ 6,600

Explanation:

Monty should $\text{includ}$e up to $\$ 8,100$ in the gross account but to an extent of the tax benefit in the previous year. Since the debt is a non-business debt, the amount of $\$ 9,000$ would be reported as the short term business capital loss.

In the previous year, Monty had a capital gain of $\$ 3,600$ and $\$33,250$ as taxable income.

Therefore, $ 3,600 + $ 3,000 = $ 6,600

So $ 6,600 out of $ 9,000 loss produced the tax benefit. Therefore, only $\$6,000$ can be included in the gross income of Monty for this year.

You might be interested in
____Can speed up the alcohol absorption
mel-nik [20]

bread!!! hope it helps

6 0
4 years ago
Read the paragraph below then answer the question. one of your friends who works at a local public tv station knows that you wis
patriot [66]
I think its Complementary
Hope i helped.
6 0
4 years ago
Following is information about consulting jobs for a company that is increasing in sales, but has not yet become profitable. The
polet [3.4K]

Answer:

Part 1

$82 per professional labor hour

Part 2

Job 141 = $16,383  ,Job 142 = $32,766 , and Job 143 = $17,399

Part 3

Cost of Goods Sold = $49,149

Ending Work In Process Inventory = $17,399

Part 4

Overheads Under- applied = $10,480

Part 5

$102.00 per professional labor hour

Explanation:

Labor Cost per hour = Total Cost ÷ Total hours

                                  = $23,580 ÷ ( 129 + 258 + 137)

                                  = $45.00 per hour

<em>We know that,</em>

Overhead allocation rate = Estimated Overhead Costs ÷ Estimated Professional labor hours

<em>But using Job 141 we can solve as,</em>

Total for Job  141                                         = $32,766

<em>Less </em>Labor Cost (258 hours × $45.00)       =  $11,610

Overheads allocated to Job 141                 = $21,156

<em>Then,</em>

Overhead allocation rate =  $21,156 ÷ 258

                                          = $82 per professional labor hour

<u>Total Costs</u>

                                          Job 140         Job 141            Job 142

Direct Labor                        $5,805         $11,610              $6,165

Overheads                         $10,578         $21,156            $11,234

Total Cost                           $16,383       $32,766           $17,399

<u>Cost of Goods Sold</u>

Note : Only Finished Jobs are accounted in this figure

Total Cost of Job 140      $16,383

Total Cost of Job 141       $32,766

Cost of Goods Sold         $49,149

<u>Work In Process Inventory</u>

Note : Only Incomplete Jobs are accounted in this figure

Total Cost of Job 142       $17,399

<u>Application of Overheads</u>

Actual Overheads (given)                                  = $53,448

Applied Overheads ($82 ×  ( 129 + 258 + 137)) = $42,968

Actual Overheads > Applied Overheads therefore we have an Under-applied situation.

Overheads Under- applied = $10,480 ($53,448 - $42,968)

<u>Reasonable Overhead Rate.</u>

Rate that does not produce variances is reasonable !

Reasonable Overhead Rate. = Actual Overheads ÷ Total Professional Hours

                                                = $53,448 ÷ 524 hours

                                                = $102.00 per professional labor hour

3 0
3 years ago
Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal conta
Nuetrik [128]

Answer: Please refer to Explanation.

Explanation:

1. Honesty.

State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".

2. Persistence.

You can be persistent on the phone if you detect deceit in the secretary's tone.

For instance,

" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".

If it still doesn't work, ask for a convenient time you can call back.

4 0
3 years ago
A sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10; free on board (
Ulleksa [173]

Answer:

Cash received = $4161

Explanation:

given data

merchandise price =  $4,500

transportation=  $300

returned = $600

to find out

amount of cash received by seller

solution

we know here that free on board shipping point

so buyer to pay the shipping charge that is paid by seller

it is also add in invoice  and Cash discount not applicable on transport cost

so

Cash received by seller  is

Cash received = (4,500 - 600) × 99% + 300

Cash received = 3861 + 300

Cash received = $4161

5 0
3 years ago
Other questions:
  • The general rule for a new startup is to
    9·2 answers
  • What are the major differences between job-order costing and process costing systems? Give an example of a well-known company th
    6·1 answer
  • "If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with annual payments of $11,680.36, how
    12·2 answers
  • Does everyone have the same job needs? Why or why not?
    10·1 answer
  • At Nice Price for the Ice, an ice cream parlor, customers routinely buy a scoop of ice cream for $2.75. If consumers purchase on
    8·1 answer
  • 1. What is another name for opportunity cost
    8·2 answers
  • Ultrahazard Removal &amp; Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed
    7·1 answer
  • Non-equity, bulletin board, OTC, pink sheet and other specific securities are not eligible for the price type you have specified
    6·1 answer
  • Allison's Auto Art is a company that applios pinstripes to vehicles. Allison's cost for a basic 1 -color pinstriping job is $35,
    14·1 answer
  • Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a building (basis
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!