Answer:
Self employment tax will be $24000
So option (e) will be correct option
Explanation:
We have given that earning from outside consulting service = $30000
Deductible amount paid in connection with consulting service = $6000
We have to find the self employment tax
Self employment tax is the difference of earning from outside source and deductible amount
So self employment tax = $30000 - $6000 = $24000
So option (e) will be correct option
1=A
2=D
3=C
4=A
5=C
6=C
7=D
8=A
9=C
10=D
11=C
12=A
13=C
14=B
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: 1) increases and 2) increases
Explanation:
When a government cuts tax on gasoline then it will become cheaper for the consumer as well as for the suppliers of gasoline. So, they increase the supply of gasoline because of the tax cut by the government.
Also, if the oil producing companies decided to increase the production at the same time then this will also increase the supply of gasoline.
Hence, both tax cut by the government and increase in oil production results in higher supply of gasoline.
Answer:
The correct answer is d) It was deducted as an expense on the income statement, but does not require cash.
Explanation:
The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.
It depends on the account if it is added or subtracted to net income. Depreciation is added to net income because it was deducted as an expense on the income statement, but does not require cash.
