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.
Answer:
FALSE.
Explanation:
When a consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is not an example of glocalization because glocalization is the term which is the combination of two terms; localization and globalization. In glocalization, global products are offered to the customers with the local modifications. For example, Pizza Hut has launched Tikka Pizza, Behari Pizza and Achari Pizza in India and Pakistan, which is the perfect example of glocalization. Putting it simply we can say that "thinking globally and acting locally."
Lcm requires to value inventory at the lower of acquisition cost or net realizable value.
Net realizable value = $27 - $1 = $26
Cost = $30
Therefore, it would be valued at $26
