Answer:
$63,000
Explanation:
One of the four methods of determining insurance if the DINK method which means Double income with no kids.
To estimate the value of the insurance using this method , the sum of , mortgage , car loans and personal debt is divided by two and added to the funeral expenses
Mortgage - 100,000
Car loan - 11,000
Personal debt - 2000
Credit card - 3000
Total = 116,000
Insurance = (116,000/2) = 58,000
Funeral expenses - 5,000
=63,000
Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
The type of venue that small-business retailers favor is C.SPECIALTY SHOP.
Being in a specialty shop, your products will be prominently displayed and competition is minimal <span>compared to other given venues.
Customers, looking for specific items that you can offer, usually prefer going directly to the shops instead of wasting time looking around those bigger venues searching for items they need. </span>
Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
Considering that Alyssa is their young daughter, United States has an astounding number of tax credits and deductions that are geared towards taxpayers with children, they could claim: Credits, Deductions, exemption, Education Benefits, Education Deductions, and Education Credits, among others.
