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USPshnik [31]
1 year ago
14

In 2016, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients andearned $25,000. The client

s signed notes receivable to Chaya that have a fair market value of$22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2016, and received payment in full of $12,000.
How much income does Chaya report from these transactions in 2016?
Business
1 answer:
Artemon [7]1 year ago
7 0

Answer:

$27,333.33

Explanation:

The computation of the amount of income reported is shown below:

= Provided services to the customer + Payment received × number of months ÷ given number of months

= $25,000 + $12,000 × 7 months ÷ 36 months

= $25,000 + $2,333.33

= $27,333.33

The seven months is calculated from the June 1 to December 31. We assume the books are closed on December 31

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Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $
Anestetic [448]

Answer:

Option (D) is correct.

Explanation:

Given that,

Began July with a finished-goods inventory = $48,000

Finished-goods inventory at the end of July = $56,000

Cost of goods sold during the month = $125,000

Cost of goods manufactured during July:

= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory

= $56,000 + $125,000 - $48,000

= $133,000

8 0
2 years ago
Which one of the following is an unintended result of the Sarbanes-Oxley Act? Multiple Choice More detailed and accurate financi
Evgesh-ka [11]

Answer:

Increased responsibility for corporate officers

Explanation:

A review of eight thousand public companies, on the study of the impact of the Sarbanes-Oxley Act (SOX) of 2002 revealed that <u>SOX increased directors' workload and risk, and increased demand by mandating that firms have more outside directors. </u>

It was also revealed that both broad-based changes and cross-sectional changes (by firm size) occurred <u>because Board committees meet more often post-SOX</u> and Director and Officer insurance premiums have doubled.

6 0
2 years ago
Marnie earns $25,000 a year while working at a local bookstore. Because the bookstore did very well this past year, Marnie recei
Umnica [9.8K]

Answer:

Marnie will save = $ 125 from her raise .

Explanation:

raise income = $500

MPC = = 0.75  

Marnie consumer 0.75 of every dollar increase . So total consumption increase = 500 * 0.75 = 375 $

Marnie will save = 500 - 375 = $ 125 from her raise .

8 0
2 years ago
All of the following are true about the project scope statement EXCEPT:a.It is an output of the Verify Scope process. b.It descr
butalik [34]

Answer:

a. It is an output of the Validate Scope process.

Explanation:

We can define project scope statement as a tool which is used to manifest the main deliverables of project which includes the major milestones, all requirements, constraints and assumptions. It describes, in detail, the project’s deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. It may contain explicit scope exclusions that can assist in managing stakeholder expectations. It is an output or the result of scope process not the validate scope process, therefore, all other options are correct while option "a" is not true.

7 0
2 years ago
You are a student with a demanding schedule of classes. You also work part time and your supervisor allows you to determine your
grin007 [14]

Answer:

enough to earn some money but not too much to jeopardize your grades

Explanation:

Since your scarce resource is time you need to create a balance between all the tasks, so much so that you are able to benefit from all of the tasks but not substitute one for another. Therefore in this situation, you will work enough to earn some money but not too much to jeopardize your grades. That way you are able to make money to pay for most (if not all) of your expenses but at the same time, you are still making sure you are benefiting from school and not wasting your time in school by not being able to graduate.

3 0
2 years ago
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