Answer:
He does not report any gross income as life insurance proceeds are exempted from tax.
Explanation:
As a rule life insurance proceeds to a beneficiary are not taxable, they are viewed as non taxable inheritance of the deceased to the beneficiary.
However if Ellie had instructed the insurance company to hold the funds for sometime before paying Jason, the interest earned during that period will be taxable.
Answer:
I can't really describe in a specific way but it's for internet
Answer:
Option (a) is correct.
Explanation:
Given that,
Net income = $112,700
Retained earnings = $108,000
Dividends = $40,000
After all closing entries are made,
The balance in the Retained earnings account is as follows:
= Retained earnings + Net income - Dividends
= $108,000 + $112,700 - $40,000
= $180,700
Hence, the balance in the retained earnings account is $180,700.
Answer: Option B
Explanation: In simple words, revenue refers to the income received by an organisation by performing its main activities. It is the amount of cash inflow made by the company before deducting the expense incurred to generate those inflows.
It is also sometimes referred to as gross profit or sales.
Thus, from the above we can conclude that the correct option is B.
Not really sure if the $35,000 is the total or not but..
If the $35,000 dollars is the total then here you go.
Take the $35,000 dollars and subtract the 10% sales tax.
35,000 - 3,500 = 31,500
Then take the total before tax and subtract the shipping charges.
31,500 - 940 = 30,560
Finally, subtract the cost of installation.
30,560 - 1,120 = 29,440
Andy's Candy spent $29,440 on equipment before taxes.
