Answer:
a. $293,000
b. $203,000
Explanation:
a. What is Robert's qualified business income?
Robert's qualified business income is the net income minus Robert's salary. Since the salary of $87,900 has already been deducted, $293,000 is Robert's qualified business income.
b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $177,900?
Extra deductible salary = $177,900 - $87,900 = $90,000
New Robert's qualified business income = $293,000 - $90,000 = $203,000
When facing a shortage you should expect .......
Answer:
d. Cash equivalent.
Explanation:
Based on the information provided within the question it can be said that the investment term being described are called cash equivalents. This is one of the three main asset classes within financial investing, with stocks and bonds. Like mentioned in the question it refers to to an investment securities as short term investments that are highly liquid. Such examples include commercial paper and treasury bills.
Answer:
b. Debit cash and d. Credit note payable
Explanation:
On borrowing from the bank, the entries to be posted by Pluto Inc. will be;
Debit Bank/Cash account $3000
Credit Credit note payable $3000
The credit represents the liability which is the obligation to payback the loan at a future date.
The right options are; b. Debit cash and d. Credit note payable.
Answer:
$10,985.73
Explanation:
The worth of the extended warranty in today's terms is the present value of all year-end repair expenses expected to be incurred in extending the warranty whereby the interest rate of 6% is the appropriate discount rate in this case as shown thus:
Present value of a future cash flow=cash flow/(1+discount rate)^n
n is the year in which the cash flow is expected, it is 1 for year 1 repair expenses , 2 for year 2 and so on.
PV of repair expenses=$2000/(1+6%)^1+$2000/(1+6%)^2+$4000/(1+6%)^3+$5000/(1+6%)^4
PV of repair expenses= $10,985.73