Answer:
Organization expenses $5,100
Startup expenses $1,700
Explanation:
Calculation of organisation expenses and startup expenses
Particulars Calculations Amount
Actual expense $54,500
Reduced for startup upto $50,000 $5,000
1. LLC may deduct ($9,500 - $5,000)*4/180 $100
Organization expenses ($5000 + $100) $5,100
2. Deduction for startup ($5,000 - $4,500) $500
Write off during the year $54,000*4/180 $1,200
Startup expenses $1,700
NB: Startup expenses are all expenses incurred for the start-up of the business are known as the startup expense which is related to the existing expense of business and will be approved after the firm.
Answer:
1. Accounts Payable BALANCE SHEET under liabilities
2. Depreciation Expense-Equipment INCOME STATEMENT under expenses
3. Gary VD, Capital BALANCE SHEET under owner's equity and/or STATEMENT OF OWNER'S EQUITY depending on the total number of owners of the company
4. Office Equipment BALANCE SHEET under assets
5. Rent Revenue INCOME STATEMENT under revenue
6. Supplies Expense INCOME STATEMENT under expenses
7. Unearned Revenue BALANCE SHEET under liabilities
8. Wages Payable BALANCE SHEET under liabilities
Answer:
Beane's cash payment for income tax = $81,000
Explanation:
Income tax expense = $82,000
Decrease in federal income tax payable = $6,000
Increase in state income tax payable = $7,000
Beane's cash payment for income tax = (Income tax expense) - (increase in state income taxes payable) + ( Decrease in federal income taxes payable)
Beane's cash payment for income tax = 82000 - 7000 + 6000
Beane's cash payment for income tax = $81,000
Answer:
$400,000
Explanation:
Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was <u>probable</u>. And a <u>reasonable estimate </u>of additional taxes was $400,000 but could be as much as $600,000.
Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.
Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet
The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.
- Existing Condition (which in this case is the tax dispute with the IRS)
- Probable Cash Outflow (which Tedd's Tax adviser confirmed)
- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')
Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.
Answer: The shareholder model of corporate governance
Explanation:
The agency problem is typically a conflict of interest in a relationship whereby a party is expected to act in the best interest of the other party. It should be noted that in corporate finance, the agency problem is a conflict of interest that takes place between the management of the company and the stockholders.
The agency problem wherein ownership and control of a corporation are separate is associated with the shareholder model of corporate governance.
