Answer: C. an implied contract.
Explanation:
An Implied Contract is one that arises as a result of the way one or both of the parties involved in the contract acts towards the other.
Unlike an Express Contract, it need not be written down but it does have the same legal weight and strength of a written contract.
The basic principle of this contract is that people should always be treated fairly in business transactions so the need to always pen it down is not necessary.
By walking in and leaving his clothes at the laundry, Bill got into an Implied Contract as it would be unfair for Tom to just clean his clothes with no payment.
Answer:
Answers below
Explanation:
a) Laureen's AGI - $45,000
For 2 daughter - AOTC is - (2000*2child)+(800*25%+2child)
=4000+400
=4400
For Ryan - 1900
AOTC - 6300
Laureen lifetime learning credit - Eligible is 2000 (The amount of the credit is 20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return)
so in above case it is - 1200*20% =240 (Since AGI is below clip of 56000 he can claim same)
=6300+240 = 6540 is eligible deduction
b)
Since AGI is 95000
AOTC can't be calimed if AGI is above 90000 and hence AOTC is zero and Lifetime learning credit can't be claimed if AGI is above 56000.. Hence it is zero education credit
c)
For Daughter it is same as a above i.e. 4,400
For Ryan it is = 2000+(10000*25%) or maximum 4000
=2000+2500 or 4000
so 4000 is allowed
so AOTC total of 8400 and LLC of 240 so claimed is 8640
Answer:
B. No effect on net income; no effect on total assets
Explanation:
When you write off bad debt, the journal entry is:
Dr Allowance for doubtful accounts XYZ
Cr Accounts receivable XYZ
This actually had no effect on the income statement, since the allowance account is already a contra asset account.
When the write off is reversed because the customer paid the debt, the journal entry is:
Dr Accounts receivable XYZ
Cr Allowance for doubtful accounts XYZ
Dr Cash XYZ
Cr Accounts receivable XYZ
Again, since the company is using the allowance method, there is no real effect on the income statement nor total assets in the balance sheet.
Answer:
$587.79
Explanation:
Data provided in the question
Amount paid in three years = $700
Discount rate in the first year = 5%
Discount rate in the second year = 6%
Discount rate in the third year = 7%
So by considering the above information, the present value is
= (Amount paid in three years) ÷ (1 + Discount rate in the first year × 1 + Discount rate in the second year × 1 + Discount rate in the third year)
= ($700) ÷ (1 + 0.05 × 1 + 0.06 × 1 + 0.07)
= ($700) ÷ (1.05 × 1.06 × 1.07)
= $700 ÷ 1.19091
= $587.79
