Answer: e. All of these choices are deductible.
Explanation:
All of the above give rise to a business expense for self-employed taxpayer's uniforms or special clothing and as such are deductible.
A lawyer needs to look the part and the option said it was a 'business suit' so that classifies as a work expense.
A clown cannot be a clown without their costume so that is definitely a business Expense as well.
Some scientists need hazmat suits to perform their duties effectively so this counts as a business expense as well and is also deductible.
And a mascot like a clown, cannot be a mascot without their attire so that is a business Expense as well.
Answer:
a) Budgeted manufacturing overhead rate = budgeted overhead cost / budgeted labor hours
= $ 4,140,000/ 180,000 hrs
= $23 per hour.
b. JOURNAL ENTRY
Debit Work in process $4,347,000 Credit Manufacturing overhead $4,347,000
c. under or over applied = Actual overheads - applied
= $4,337,000 - $4,347,000
Over applied = 10,000
yes the amount of over applied overheads is significant and material enough and it should be written off against cost of sales.
JOURNAL ENTRY
Debit Manufacturing overheads $10,000 , Credit Cost of sales $10,000
Explanation:
allocated manufacturing overheard = $23 * 189000 hrs = $4,347,000
Answer:
The correct answer is A
Explanation:
As per the UNICAP (stands for Uniform Capitalization) rules, the person have to capitalize the cost for creating the assets, which means or defines as to capitalize the raw materials, labor cost and other indirect as well as direct costs that is attributable to the production of the assets.
So, the costs which is to be capitalized in respect to inventory are the repacking cost, which is involved in the indirect supplies and other materials and the off site storage cost is involves in the rental of the facilities and equipment.
Answer: A labor force that is more productive
Explanation:
According to the given question, a good productive labor force helps in producing the various types of products and the services in the market and also maintain the economical growth of the country.
The high rates of the economical growth are tends to have a labor force which is more productive as it helps in supplying the finished goods and the services according the demand and the requirement of the customers.
The high productivity helps in increase the economical growth of an organization and also increase the umber of employment in the country.
Therefore, the given answer is correct.
Answer:
Explanation:
Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2
