Answer:
Billie Bob
Depreciation deduction during the second year is:
$192.
Explanation:
a) Data and Calculations:
Property basis value = $2,400
Useful life = 5 years
Depreciable rate per year = $2,400/5 = $480
Depreciation deduction during the second year = $480 * 40% = $192
b) The depreciation deduction for year 2 is limited to the 40% business use. This implies that Billie Bob cannot claim the 100% depreciation of $480 for the property since he could only use it 40% for his business.
Baskin-Robbins is one of the world’s largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso ’n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021.Salaries expense $13,700 Sales revenue $69,800Inventory (July 1, 2021) 2,300 Interest income 3,300Sales returns 1,100 Cost of goods sold 28,700Utilities expense 3,600 Rent expense 6,700Income tax expense 6,000 Interest expense 400 Inventory (July 31, 2021) 1,100Required:1. Prepare a multiple-step income statement for the month ended July 31, 2021.2. Calculate the inventory turnover ratio for the month of July. Would you expect this ratio to be higher or lower in December 2021? Explain.3. Calculate the gross profit ratio for the month of July.
Answer:
Baskin-Robbins
Raleigh, North Carolina
1. Multi-step Income Statement for the month ended July 31, 2021:
Net Sales Revenue $68,700
Cost of goods sold 28,700
Gross profit $40,000
Expenses:
Salaries $13,700
Rent expense 6,700 20,400
Operating income $19,600
Interest Income $3,300
Interest expense ($400)
Income before tax $22,500
Income tax expense 6,000
Net income $16,500
2. Inventory turnover ratio = Cost of goods sold/Average Inventory
= $28,700/$1,700 = 16.88 times
3. I expect the inventory turnover ratio for Baskin-Robbin's shops at Raleigh to be higher in December 2021. There will be more sales of the different flavors of ice cream in December because of the Christmas holidays. As a result, the cost of goods sold will be higher than July's, and the ending inventory will be lower still than July's.
4. Gross profit ratio = Gross profit/Net Sales * 100
= $40,000/$68,700 * 100
= 58%
Explanation:
a) Data and Calculations:
Expenses:
Salaries $13,700
Rent expense $6,700
Interest expense $400
Interest Income $3,300
Sales Revenue $69,800
Sales returns 1,100
Net Sales Revenue $68,700
Income tax expense 6,000
Cost of goods sold = $28,700
Inventory, July 1, 2021 $2,300
Inventory, July 31, 2021 $1,100
Total inventory $3,400
Average inventory $1,700 ($3,400/2)
Suppose a Canadian firm and a Japanese firm both produce rice. Also suppose the ratio of the price of land divided by the price of labour is lower in Canada than in Japan. If they both seek to maximize economic profit, the Canadian firm will use the two inputs, land and labour, in such a way that its land/labour ratio in production:_________.
A. is equal to one.
B. is higher than that of the Japanese firm.
C. is equal to that of the Japanese firm.
D. is lower than that of the Japanese firm.
E. can't be determined without knowing the absolute prices of land and labour in each country,
Answer:
The answer is "Option E".
Explanation:
Complete values are the number of dollars that can be traded for just a specified volume.
Cash flows calculate that equity capital to a workforce. In particular, over the period, companies generally have higher equity shares rated to improve their output through investment as well as the automation of a working system. The capital adequacy ratio (K/L) was its proportion of assets to capital levels of intensity.
Labor's high wealth Whenever the labor costs are high, companies will try to replace assets with labor. For example, waitstaff in Europe is fitted with a mitral valve that directly delivers the orders to a kitchen.
It allows the use of labor less efficient and far less necessary. It may not be necessary or desirable to spend in the command post equipment to relatively low labor costs, thus providing a feeling of sadness ratio. The brief variation in labor is simpler than the stock of capital. Financial performance to work is tending may rise in downturns as companies lose their jobs. Migrants and creating a company High national salaries of areas with high working capital will usually occur.
This would allow employers to shift from a low investment wage to a high wage growth ratio. It reduces real wage inequalities and eliminates the investment difference. In western China, for example, workers have moved to SE China, of higher wages.
John and Paul are brothers and both are United States citizen. Paul works in Mexico and maintains two (2) bank accounts in Mexico. The accounts are held in Paul's name but both John and Paul are allowed to write checks from the account. The combined account balances are $50,000. The accounts generate $100 of interest income. Paul pays taxes in Mexico and claim a foreign tax credit on his US Income Tax Return. Which of the following statements are most accurate?
a. Only John has a financial interest in the Mexican bank accounts and must file a FBAR. Paul is exempt from filing the FBAR as he paid taxes to Mexico on the accounts.
b. Both Paul & John have a financial interest in the Mexican bank accounts and are required to file a FBAR.
c. Neither John or Paul have a requirement to file an FBAR as the income generated from the account does not exceed $100.
d. None of the above.
Answer:
I think B
Explanation:
During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,000. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $12,600,000 (60% of sales). The company estimates that 8% of all sales will be returned. The year-end adjusting journal entry to account for anticipated sales returns would include a:
Answer:
Credit to refund liability of $280,000.
Explanation:
The year end adjusting entry would be
Sales Return $280,000 ($21 million × 8% - $1,400,000)
Refund Liability $280,000
(Being the anticipated sales return is recorded)
Here the sales return is debited as it increased the sales return and the refund liability is credited as it increased the liabilities
The same is to be considered