Answer:
$80,000
Explanation:
Calculation to determine what Elk's taxable income is:
Using this formula
Taxable income=Operating income-Operating expenses
Let plug in the formula
Taxable income=$370,000-$290,000
Taxable income=$80,000
Therefore Elk's taxable income is:$80,000
Answer:
The correct answer is option c.
Explanation:
The law of increasing oportunity costs means that as we go on substituting production of one good for another the opportunity cost of sacrificing the alternative will go on increasing. That is whythe prodcution possibilty curve is concave and bowed outward.
Because of increasing opportunity costs, there is a limit to specialization of antions in production of a commodity. As they go on producing the goods they specialize in, the opportunity cost of giving up the alternative goes on increasing.
Answer:
A. Patent = 28000 / 7 years = 4000
B. Goodwill = Indefinite life, so amortization is zero
C. Leasehold improvements = Construction is done on 31 December hence no depreciation for the current year
D. Ordinary repairs and maintenance = Revenue expenditure, so no depreciation
E. Machine A = Already recorded depreciation So no additional depredation as it is sold
F. Machine B (31000 - 7000) / 15 year = 1600
Answer:
A. Good marketing
Explanation:
Every organization, regardless of the segment or product it sells, must develop a consistent marketing strategy.
A company that sells a product that is the best of its kind on the market, must invest in an effective strategy so that the product is known to consumers, is competitive and correctly distributed. The five p's of marketing can be a good strategy to correctly position the product on the market, as it involves strategic development for the product, price, promotion, place and people.
Answer:
D.
Explanation:
To accrue means to grow or to accumulate over time. In accrual accounting, if the revenue recognition criteria are met in the current period, revenue will need to be accrued in the current accounting period even if cash will not been received until a later accounting period.
Accrued revenues is a type of account that require adjustment, to register the unrecorded revenues that have been earned and for which cash has not yet to be received.
The accrual journal entry to record the sale involves a debit to the accounts receivable account and a credit to sales revenue. If the sale is for cash, debit cash instead. The revenue earned will be reported as part of sales revenue in the income statement for the current accounting period.
It is the same for accrued revenue and for revenue on account.
