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Gnesinka [82]
2 years ago
4

In 2019, Wally had the following insured personal casualty losses (arising from one casualty in a Federally declared disaster ar

ea). Wally also had $42,000 AGI for the year before considering the casualty. Fair Market Value Asset Adjusted Basis Before After Insurance Recovery A $9,200 $8,000 $1,000 $2,000 B 3,000 4,000 -0- 4,000 C 3,700 1,700 -0- 900
Wally's casualty loss deduction is:
Business
1 answer:
JulsSmile [24]2 years ago
5 0

Answer:

$1300

Explanation:

Initial amount of loss (lesser of AB or decline in value less insurance proceeds):

Asset A: $7000 - $2000 = $5000

Asset B: $4000 - $4000 = $0

Asset C: $1700 - $900 = $800

Total = $5800

10% of AGI = $4,200

Therefore, Wally's casualty loss deduction is: $5800 - $300 - $4200 = $1300

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Which of the following ingredients would alert you to the likely presence of trans-fatty acids in a product? A. hydrogenated veg
N76 [4]

Answer:

a. hydrogenated vegetable oil

Explanation:

Hydrogenated vegetable oil -

It is found in many common food ingredients.

The hydrogenated vegetable oil is composed of oils that are extracted from sunflowers , olives plants etc.

These oils are liquid at room temperature , and to convert it to solid , the compound is saturated with hydrogen molecules , i.e. , hydrogen molecules are added , which changes the taste and texture of the oil .

The process of hydrogenation forms trans fats , which is unsaturated in nature and is therefore harmful for health.

6 0
2 years ago
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in th
Viktor [21]

Answer:

<u>Product</u>        <u>Quantity </u>              <u>LCM</u>                          <u>Total</u>

Model A           300                  $125                         $37,500

Model B           500                   $90                           $45,00

Model C           150                    $59                           $8,850

Model D           800                  $115                         $92,000

Model E           400                  $140                         $56,000

Explanation:

Product        Quantity        Cost Per Unit         Market Value (NRV)

Class 1:

Model A           300                  $140                         <u>$125 </u>

Model B           500                   <u>$90</u>                          $112

Model C           150                    $60                          <u>$59</u>

Class 2:

Model D          800                  $120                          <u>$115</u>

Model E           400                  <u>$140</u>                         $145

When a company records inventory at lower of cost or market value, it will record its inventory at whichever price is lower. E.g. if NRV is lower than purchase cost, then inventory is recorded at NRV. If purchase cost is lower than NRV, then inventory will be recorded at purchase cost.

Models B and E should be recorded at purchase cost while models A, C and D should be recorded at NRV.

Product        Quantity               LCM                        Total

Class 1:

Model A           300                  $125                         $37,500

Model B           500                   $90                           $45,00

Model C           150                    $59                           $8,850

Class 2:

Model D           800                  $115                         $92,000

Model E           400                  $140                         $56,000

8 0
2 years ago
Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will
lozanna [386]

Answer:

The contribution margin will decrease by 2.50

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

IF sales decreases, then the contribution margin decreases.

That's because, there is less money to pay for the variable cost.

The company will also have to sale more units to break even, as now each units contribution is fewer.

Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious

7 0
2 years ago
Stephanie bought a package of pencils for $1.75 and some erasers that cost $0.25 each. She paid a total of $4.25 for these items
Sonbull [250]

Answer:

the dogs

Explanation:

8 0
2 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
Nesterboy [21]

Answer:

Cost of equity, re= 0.098356 or 9.84 %

Explanation:

D1 = $ 1.25

P0 = $ 27.50

gL = 5 % = 0.05

F = 6 % = 0.06

Cost of equity, re can be calculated using the formular below:

Cost of equity, re = D1/ {P0 x (1- F)} + gL

                             = $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05

                             = $ 1.25 / ($ 27.50 x 0.94) + 0.05

                             = $ 1.25 / 25.85 + 0.05

                           = 0.048356 + 0.05

Cost of equity, re= 0.098356 or 9.84 %

8 0
2 years ago
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