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Nikitich [7]
3 years ago
9

Sharon made a $160,000 interest-free loan to her son, Todd, who used the money to pay for his masters at Baruch. Todd’s only sou

rces of income were $25,000 from a florist business he runs part time and $490 of interest on his checking account. The relevant Federal interest rate was 5%. Based on the above information:_____
a. Todd's business net profit will be reducod by $3,000 (0S x $60,000) of interest expense.
b. Sharon must recognize $3,000 (0.05 x $60,000) of imputed interest income on the below- market loan.
c. Todd's gross income must be increased by the $3,000 (05 × $60.000) imputed interest income on the below market loan.
d. Sharon does not recognize any imputed interest income and Todd does not recognize any imputed interest expense.
e. None of the above is correet.
Business
1 answer:
34kurt3 years ago
6 0

Answer:

b. Sharon must recognize $3,000 (0.05 x $60,000) of imputed interest income on the below- market loan.

Explanation:

When a family member makes an interest free loan, the IRS will calculate imputed interest, and that is generally considered a gift. When someone makes a gift, they are responsible for paying any applicable taxes.

In this case, Sharon will have to pay gift taxed for the imputed interest resulting form the loan.

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Assume Ireland and Mauritania can both produce grain and dates, and that the only limited resource is the farming labor force, m
vesna_86 [32]

Answer:

Mauritania has an absolute advantage in the production of dates

Neither countries have an absolute advantage in the production of grains

Explanation:

A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Ireland and Mauritania produces 10t grains. None of the countries have an absolute advantage in the production of grains

Mauritania produces 25t of dates while Ireland produces 5t of dates. 25 is greater than 5, so Mauritania has an absolute advantage in the production of dates

4 0
3 years ago
What should you do if you suspect your boss of unethical business practices?
Zina [86]

The other day, someone asked me about the last time my ethics had been tested at work and how I reacted.

I wasn’t sure how to respond. It’s a good question, and I wanted to answer it. Still, I hesitated to reveal too much about some of the less-than-honest bosses I’ve reported to in the last two decades.

These are bosses who lied, gossiped about their staff to other staff, broke confidences, fudged numbers to governmental agencies, botched payroll tax withholdings and covered it up, and willfully and recklessly turned a blind eye to leadership abuse — for starters.

8 0
4 years ago
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Paula just took over as risk manager of Agri-Products Company. The company produces agricultural chemicals and buys and sells ag
strojnjashka [21]

Answer:

risk management policy statement

Explanation:

Based on the scenario being described within the question it can be said that this list is known as a risk management policy statement. Like mentioned in the question, this is a documentation that clearly states all the risks and hazards involved when performing a specific task. Companies such as Paula's Agri-Products Company use these policies in order to define these risks and let all of the employees know about them.

3 0
3 years ago
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In addition to an annual base salary of $1.3 million, Heather Bresch, CEO of Mylan Pharmaceuticals, also received 6.4 million US
Viefleur [7K]

Answer: C. Top level managers may pursue their own interests over that of the company.

Explanation:

The scenario given in the question explains that top level managers may pursue their own interests over that of the company.

In the case of sole proprietorship or partnership business, the revenue generated by the firm or the profit made belongs to the owners. In the case of of a Corporation, this isn't the case as the revenue should be used for Shareholders benefits. Sometimes, there may be a conflict of interest which may then bring about a situation whereby the top level managers pursue their own interests over that of the company.

Hence, the correct option is C.

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3 years ago
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myrzilka [38]
A<span>n officer conducting a lineup should allow the defense attorney at the lineup to do all but B. control any part of the proceedings.
This is what the officer himself or herself is doing - the defense attorney is not allowed to do such a thing. However, they can passively or actively observe the proceedings, take notes, or just record the proceedings in order to revise them later on.
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