Answer:
The best answer is "A"
It is deductible both on Tony's income tax return and on Abe's estate tax return
Answer: d. The invoice amount is greater than $3,300 and less than $3,400.
Explanation:
The terms of the sale are FOB destination, 2/10, n/30. This means that company B will get a 2% discount if they pay in 10 days, if not, they will have to pay in 30 days.
The goods were sold at a list price of $4,200.
Company B returned $750 according to the Credit memo from Company A.
This reduces the transaction amount by that credit memo,
= 4,200 - 750
= $3,450
It is stated that Company B paid within the discount period which was 10 days so they get the discount for a total balance of,
= 3,450 * (1 - 2%)
= $3,381
The answer therefore is option D.
During a recession, the Federal Reserve, charged with regulating the nation's economy, adds money to the system to make credit more easily available. Easy credit results in greater economic activity as businesses and individuals borrow to finance purchases and operations. This is called the liquidity effect in economics. Economist Milton Friedman coined the term "liquidity effect" in 1969 to describe how expansionary monetary policy affects three elements of the economy: interest rates, income and inflation.
Answer:
Semiannual compounding of interest = $2,328.75
Explanation:
Given:
Semi annual rate = 5/2 = 2.5 = 0.025
P = $46,000
Find:
Semiannual compounding of interest
Computation:
Semiannual compounding of interest = 46,000[1 - (1 + 0.025)²]=
Semiannual compounding of interest = $2,328.75
Answer:
b. increase expenses by $12,900.
Explanation:
When supplies are purchased, the entries required are debit to supplies account and a credit to cash. when the supplies are used up, debit supplies expense and credit supplies account.
Hence, the amount to be expensed is the difference between the purchases and the ending supplies balance if the opening balance in supplies account is nil.
Supplies used up
= $19,350 - $6,450
= $12,900
This will be posted as a debit to the supplies expense account.
