All categories

3 years ago

In each of the following situations, indicate whether the 50% reduction for meals applies.

Business

1 answer:

Mashcka [7]3 years ago

5 0

Answer:

Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica.

This should be considered as part of the employees' compensation (and the employee should be taxed), therefore, the company can deduct 100% of it.

The employer has a cafeteria for its employees where meals are furnished at cost.

Cafeteria meals are not included in the 50% deduction.

The employer sponsors an annual Labor Day picnic for its employees.

This is considered a recreational activity paid by the employer, so the 50% deduction does not apply.

Every Christmas, the employer gives each employee a fruitcake.

It is a fringe benefit, although I doubt that the employees are taxed for receiving a fruit cake. There is no 50% deduction. (referred to as de minimis fringe benefit)

The taxpayer gives business gifts to her clients at Christmas.

Business gives are not subject to a 50% deduction, instead they are subject to a $25 limit.

You might be interested in

The process specifications are 12.45 and 13.45 minutes. Based on the data given, does it appear that specifications are being me

natima [27]

Answer:

a. Yes

Based on the data given, it appears that specifications are being met.

Explanation:

a) Data and Calculations:

Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Average

12.5 13.4 13.0 13.2 12.9 65 13.00

12.7 13.2 13.6 12.7 13.5 65.7 13.14

12.9 13.0 13.3 13.3 13.2 65.7 13.14

13.2 13.1 13.4 12.7 13.2 65.6 13.12

Totals 51.4 52.7 53.2 51.9 52.7 261.9 52.4

Average 12.85 13.17 13.3 12.97 13.17 13.1

b) Using the law of averages, the process specifications of 12.45 and 13.35 minutes were not exceeded under any sample type. Therefore, it can be concluded that the process specifications are being met.

6 0

3 years ago

If the par value of a stock is $5 and the offering price of the stock is $2, the capital in excess of par is:

mr_godi [17]

You cannot compute for the capital in excess of par since you don’t have the number of shares but let us assume there are 100,000 shares.

If the Company sell 100,000 shares of its common stock for $2 per share, and the par value of each share is $5, then the amount of the capital in excess of par is 100,000 shares x $3/share, = 300,000 and is recorded:

Cash 500,000

Common stock ($2 x 100000) 200000

Additional Paid-In Capital($3 x 100000) 300000

4 0

3 years ago

Compute cost of goods sold using the following information: Finished goods inventory, beginning $ 540 Cost of goods manufactured

SVEN [57.7K]

un u get the numbers then subtract them and come good with the answer

4 0

3 years ago

In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the c

NemiM [27]

Answer:

True

Explanation:

Stock ownership plans refer to those plans whereby the existing employees are provided with an opportunity to purchase the stocks of the company at a lower price than they are offered in the open market

Employee stock option plans are one of the stock ownership plans. The condition for availing such plans is usually the length of the service of the employees. The benefit is recorded as an employee compensation.

In the context of big organizations with innumerable employees, employees may not be able to identify themselves as significant and may consider those with major chunk of shareholdings as the ones whose actions affect the stock price.

This being merely an illusion since collective efforts of all the employees affect the company's stock price.

8 0

3 years ago

When the ace hardware store located in franklin mails an advertising flyer to all the residents in the community, it is an examp

densk [106]

This could be either print media or support media. I believe it is print media.

7 0

3 years ago