Blaze operates a restaurant in Cleveland. He travels to Columbus to investi- gate acquiring a business. He incurs expenses as follows: $1,500 for travel, $2,000 for legal advice, and $3,500 for a market analysis. Based on the different tax consequences listed below, describe the circumstances that were involved in Blaze’s investigation of the business. a. Blaze deducts the $7,000 of expenses. b. Blaze cannot deduct any of the $7,000 of expenses. c. Blaze deducts $5,000 of the expenses and amortizes the $2,000 balance over a period of 180 months.
Solution 1
Answer: The following assumptions will be made as per the tax laws
Explanation:
1. As the expenditure made by blaze was to enquire about the business operation similar to his, therefore the expenditure is eligible for deduction.
2. If Blaze would not be inquiring about a restaurant or would also not acquire it later. Then the expenditure would not be eligible for deduction.
3. If Blaze would not have been in the restaurant business but eventually purchases the business he was inquiring about then he can claim $5000 expenses before and the $2000 deduction later.
📚 Related Questions
Answer:
- Initial Balance
Accounts Receivable $ 283,000
Allowance for Uncollectible Accounts $ 1,900
- Journal Entry
Bad debt expense $ 3,760
Allowance for Uncollectible Accounts $ 3,760
- Final Balance
Accounts Receivable $ 283,000
Allowance for Uncollectible Accounts $ 5,660
Explanation:
Accounts Uncollectible are those credit that the company give and there are not chances of been collected.
When the customers buy products on credits but then the company can't collect the debt, then it's necessary to write off the unpaid bill as uncollectible
One way it's to write-off directly the bad debts at the moment decided that the credit are uncollectible, the total amount it's reported as bad debt expenses which affect negativly the income statement and the accounts receivable are reduce in the same amount, less assets.
The other way it's to determine a percentage of total amount of accounts receivables as uncollectible, exist many ways to analize the accounts receivable and figure the value of uncollectible.
When the company have the percentage of uncollectible accounts the journal entry required is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)
At the moment of the write-off as the expenses were before recognized we only use the Allowance for Uncollectible Accounts (Debit) with Accounts Receivable (Credit), with this we are recognizing the uncollectible credit of the company.
Answer:
An order of 40As should be placed to meet the requirement of 300 As at Week 4
Explanation:
Given
Current Week: Week 1
Stock: 20 As
End Week: Week 5
Stock: 30 As
Activities within the week are as follows:
In the question, there's no planned receipt for week 2;
So, the data entry for week 2 is
Week 2:
Stock: 0 As
There are scheduled receipts planned for week 3 and week 4 of 120 As each;
Week 3:
Stock: 120 As
Week 4:
Stock: 120 As
Since the End week is week 5 and at this point there are (20 + 0 + 120 + 120) As in stock;
To balance the stock, there's a need for 300 As - (20 + 0 + 120 + 120) As
= 40 As.
So, Week 5 Entry is as follows;
Week 5:
Stock: 50 As
Tabulate the above findings in a table;
Week Quantity Accumulated Quantity
1 20 20
2 0 20
3 120 140
4 120 260
5 40 300
The Accumulated Quantity stands as the cumulative frequency of the table.
It is stated that, the expectant week is week 5 and there's a lead time of 1 week.
So, the order should be placed at
Week (5 - 1)
The order should be placed at week 4
The Size of order to be placed = Total Requirement - Accumulated Quantity at Week 4
Size of order to be placed = 300 - 260
Size of order to be placed = 40.
Conclusively, an order of 40As should be placed to meet the requirement of 300 As at Week 4
Answer:
40 units at the start of week 4
Explanation:
Week Quantity Accumulated Quantity
1 20 20
2 0 20
3 120 140
4 120 260 ---> Order by 40 units *
5 40 * 300
* 40 units, received in week 5, from order placed 1 week before ( week 4 )
Answer:
$307,382.82
Explanation:
current age = 65 years
Requires $20,000 at the beginning of the year for the next 35 years.
interest rate = 6%
So, initial investment = PV of all the inflows
= $20,000+ 20,000×PV×( 6%, 35% years)
=$20,000+ 20,000×14.3681
= $20,000+ 287,362.82= $307,382.82
So, he must invest $307,382.82 to get $20,000 every year.
Answer:
Positive statement is defined as the statement which are fact based and tells us the reality and these statements can be tested, amended or rejected on behalf of the evidence.
Normative statement is defined as the statements which includes suggestions or opinions that can be tested by observing the evidence. These are the subjective statements.
(a) Positive statement
(b) Normative Statement
(c) Normative Statement
(d) Positive statement
(e) Positive statement
(f) Normative statement
Answer:
A. firms currently making pizza will switch to making calzones
Explanation:
Answer:
The predetermined shop overhead rate per direct labor hour is $10
Explanation:
The formula to compute the predetermined shop overhead rate per direct labor hour is shown below:
Predetermined shop overhead rate = (Total shop overhead cost) ÷ (direct labor hours)
where,
Total shop overhead cost = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
= $44,500 + $138,000 + $27,500 + $10,000
= $220,000
And, the Direct labor hours = (Shop direct labor) ÷ (average shop direct labor rate)
= 660,000 ÷ $30
= 22,000 hours
Now put these values to the above formula
So, the rate would equal to
= $220,000 ÷ 22,000 hours
= $10
Answer:
maybe affect decisions she makes in daily life
Explanation:
Answer: can affect an individual's decision on things.
Explanation: The movie's portrayal about the poor conditions of killer whales in captivitity helped to shape the way Nikole feels and reasons. The movie is a marketing strategy that seeks for animals like killer sharks be treated and placed in better conditions that would make people want to visit them all the time. Its game plan is to discourage people from visiting, encouraging and indulging the captivity of animals. By portraying the killer whales in poor conditions, it has affected the way Nikole thinks and feels about their living conditions.
Answer: The correct answer is $ 6200.
Explanation: We must start from the $ 8000 bank balance, to which we will add the outstanding deposits of $ 4000 and finally we will subtract the $ 5800 to arrive at the correct cash balance in the Mooner Sooner balance at the end of the year.
Therefore 8000 + 4000 - 5800 = $ 6200.
Answer:
Remaining capital gain in 2017 is $100
Explanation:
given data
net capital loss in 2018 = $70,000
net capital gains in 2017 = $22,100
net capital gains in 2016 = $48,000
net capital gains in 2015 = $10,600
net capital gains in 2014 = $8,600
to find out
net capital gain in 2017
solution
we know that here that the net capital loss can only be carried back three years
so It cannot be applied to the net capital gain in 2016 either because the corporation suffered a net operating loss that year
so here we have given
Net capital gain offset in 2016 is $48,000
so Remaining capital loss carry back is = net capital loss in 2018 - Net capital gain offset in 2016
Remaining capital loss carry back is = 70,000 - 48,000 = $22000
so
here net capital gain in 2017 is $22,100
Remaining capital gain in 2017 = net capital gain in 2017 - Remaining capital loss carry back 2016
Remaining capital gain in 2017 = 22,100 - 22000
Remaining capital gain in 2017 is $100
Answer:
Option (b) is correct.
Explanation:
Raclette is a popular wintertime dish in Switzerland. Both Raclette cheese and boiled new potatoes are used together to make Raclette.
Therefore, Raclette cheese and boiled new potatoes are complimentary goods because both are used together to satisfy a given want.
In case of complimentary goods, there is an inverse relationship between the price of a good and demand for its complimentary good.
Hence, if there is a decrease in the price of Raclette cheese then as a result the demand for new potatoes increases.
So, the correct option is (b).