Answer:
Net income in year 2021 = $0
Net income in year 2022 = $6,000
Explanation:
Given:
Purchased bonds(2021) = $860,000
Sold bonds (2022) = $866,000
Fair market value = $858,500
Computation:
A. Net income in 2021
The fair market value of the bond is less than the purchase price of the bond, that is why we can say that no profit has been received in the year 2021
Net income = $0
B. Net income in 2022
Net income = Sold bonds - Purchased bonds
Net income = $866,000 - $860,000
Net income = $6,000
Answer: a) 1
b) yes marginal rate of substitution is less than the relative price
c) 2.00
Explanation:
a) Raul’s marginal rate of substitution is 1 because he is only willing to trade 1 cal card for 1 additional Nolan card
b) Raul’s marginal rate of substitution is Mc/Mn = 1 However, the relative price of a Cal Ripken card is Pc/Pn = $24/$12 = 2.00. Since the marginal rate of substitution is less than the relative price, Raul can make himself better off by selling 1 Cal card and buying Nolan cards.
c) His marginal rate of substitution must be equal to the relative price; the relative price rule holds that says that Mc/Mn = Pc/Pn. From b above we know that the relative price is 2.00, Raul's marginal rate of substitution must also be 2.00.
Answer:
$5,000
Explanation:
Money received as scholarship and used to pay for tuition or related expenses is not included in the gross income. So the $1,000 scholarship from the Thespian Club and the $4,000 scholarship from the Elks Lodge are not taxable. The only taxable income that Henry earned is the $5,000 that he was paid for being a dorm supervisor.
Answer:
A. Buy the telephones; the savings is $12,000
Explanation:
The computation is shown below;
<u>Particulars Without offer with offer </u>
Direct material $4,000 $0
(2,000 × $2)
Direct labor $16,000 $0
(2,000 × $8)
Variable manufacturing overhead $12,000 $0
(2,000 × $6)
Fixed manufacturing overhead $12,000 $2,000
($12,000 - $10,000)
Purchase cost $30,000
($2,000 × $15)
Total cost $44,000 $32,000
Therefore the option A is correct
Answer: Please refer to the explanation section
Explanation:
Loss from operations = $500 000
Loss (sale of assets) = $1000 000 - $800 000 = $200 000
Income from continuing operations after tax = $2000 000, Therefore income from continuing operations before tax is equal to $200 000 x 100/60 = 3 333 333.333
Net Income before tax = 3 333 333.333 - 500 000 - 200 000
Net Income before tax == 2633 333.333
Net Income After Tax = 2633 333.333 x 60/100 = $1580 000
Income Statement
Income from continuing operations 3 333 333.333
Loss from operations - 500 000
Loss from sale of assets <u>- 200 000</u>
Net Income before Tax 2633 333.333
Taxation <u>-1053 333.333</u>
Net Income 1580 000
