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2 years ago

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

Business

1 answer:

Mashcka [7]2 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.

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Cullumber Company incurred $800000 of research and development costs in its laboratory to develop a new product. It spent $15000

cricket20 [7]

Answer:

$212,000

Explanation:

Calculation to determine the total amount that should be debited to Patents through July 31, 2017

Using this formula

Total amount debited to Patents=Legal fees for patent+Legal fees in a successful defense of patent

Let plug in the formula

Total amount debited to Patents=$150,000+$62,000

Total amount debited to Patents=$212,000

Therefore the total amount that should be debited to Patents through July 31, 2017 is $212,000

4 0

2 years ago

Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix

Nezavi [6.7K]

Answer:

Number of units= 4,000 units

Explanation:

Giving the following information:

Sales $200,000

variable costs $120,000

fixed costs $60,000

net income $20,000.

We have to maintain a net income of $20,000.

First, we will calculate the selling price per unit and the unitary variable cost:

Selling price= 200,000/5,000= $40 per unit

Variable cost per unit= 120,000/5,000= $24 per unit

New selling price:

Selling price= $44

Contribution margin per unit= 44 - 24= $20

Now, we have to find the total contribution margin required:

Contribution margin required= net operating income + fixed costs

Contribution margin required= 20,000 + 60,000= 80,000

Number of units= total contribution margin/ unitary contribution margin

Number of units= 80,000/20= 4,000 units

4 0

3 years ago

The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed

lesya692 [45]

Answer: $30,600

Explanation:

First calculate the earnings for the year.

Revenue is given. Expenses are also given and come out of revenue. Dividends also come out of revenue as well.

Retained Earnings for the year is therefore,

Retained Earnings for the year = Revenue - Expenses - Dividends

= 62,000 - 44,900 - 2,300

Retained Earnings for the year = $14,800

This figure should be added to the retained earnings of the previous period to find the total balance.

= 14,800 + 15,800

= $30,600

$30,600 is the closing Balance on Retained Earnings after closing entries.

8 0

2 years ago

Which type of payment has the most consistent earnings?

dedylja [7]

It would be salary because its the same pay rate no matter if you work extra hrs or not

7 0

3 years ago

Read 2 more answers

Job design refers to the process of defining the way work will be performed and the tasks that will be required in a given job.

miskamm [114]

Answer:

1. The main priority for workers at a manufacturing facility is to maximize efficiency.

Industrial engineering. Because it is designed to increase efficiency..

2. A trucking firm is adding an air-suspension seat to its new line of trucks to help prevent drivers from experiencing chronic back pain.

Ergonomic. Because this structure is designed to increase health and safety.

3. A construction company is improving absenteeism and worker satisfaction by decreasing the amount of heavy lifting and overhead work expected of employees.

Ergonomic.The same goes about ensuring safety and health.

4. A smoke alarm manufacturer increases employee task significance by showing workers how their work contributes to the final product, which can ultimately save lives.

Motivation. Because this covers work enhancement, flexibility and more.

5. A clothing manufacturer is expanding to developing countries where employees will receive training on the single best way to produce each item of clothing.

Industrial engineering. Because it is used to increase efficiency.

6. A local coffeehouse is designing its jobs to ensure that employees do not feel pressure to process information beyond their capabilities.

Mental capacity. Since the boundaries and constraints of mental health are measured.

7. Librarians at the local library are being trained and motivated to be more involved with their job and decision making.

Motivation. Because this covers work enhancement, flexibility and more.

8. A medical services company is considering employee cognitive capabilities and limitations while in the process of redesigning jobs.

Mental capacity. Since the boundaries and constraints of mental health are measured.

6 0

3 years ago