Answer:
b)
i) Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Total Income = Taxable income + Non-taxable income
= $50000 + $30000
= $80000
ii) Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
= ($80000/$50000)*8000
=$12800
iii) Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
= $30000 - ($12800-8000)
= $25200
Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
Place that number on Schedule B, line 2.
Explanation:
Answer:
This is correct
Explanation:
There will be two entries. One at the time of receiving cash on 1st July . That would be
Cash. B. $6600 (debit)
Unearned Rent Revenue. $ 6600 (credit)
On 31st Dec an adjusting entry would be made . The rent for 6 months will be calculated which will be as given above.
Rent for 6 months = ( 6,600/12 )* 6= $ 3,300
The entry will be
Unearned Rent Revenue $3,300 (debit)
Rent Revenue $ 3,300 (credit)
$ 3300 will be deducted from the current liabilities on the credit side.
Rent Revenue of $3300 will be added on the credit side of the income statement.
Answer:
Nursery Supplies at year-end 76,000,000
Gain on investment 12,000,000
Explanation:
Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.
value of the investment at year end:
begining 67,000,000
income 60,000,000 x 20% = 12,000,000
cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)
ending investment 76,000,000
Answer:
The Oscar's fixed costs per month is $2,500
Explanation:
Fixed cost: The fixed cost is that cost in which the amount is remain fixed whether production level change or not, that means it does not have any effect on the production level.
In the given question,
Monthly rent is $2,500 which is fixed so, it would be considered as fixed cost
The per hour pay and electrical bill depend upon the total hours of operation which means if the more hours, the workers are engaged so more pay will be give to them, and more electricity bill come.
And if they are working few hours, than less rate and less electrical bill will be there which reflects the variable cost. So, these cost are considered variable cost. Thu, it would not be included in the fixed cost.
Hence, Oscar's fixed costs per month is $2,500
Answer:
The benefit cost ratio is 1.564
Explanation:
The benefit-cost ratio is the ratio of the present value of benefits to the present value of costs. It is thus calculated as follows.
Benefit-cost ratio = Present value of benefits / Present value of costs
Present value of costs = $20,000 + $2,500 (P/A, 10%, 10 years)
= $20,000 + $15,361
= $35,361
Present value of benefits = $9,000 (P/A, 10%, 10 years)
= $9,000 x 6.145
= $55,305
Benefit-cost ratio = $55,305 / $35,361
= 1.564
