Answer:
$82,800
Explanation:
The computation of the amount of interest cost to be capitalized during 2018 is shown below:-
Amount of interest cost to be capitalized = (Borrowed amount × Rate of interest) + ($300,000 ÷ 2 × Rate of interest)
= ($720,000 × 9%) + ($150,000 × 12%)
= $82,800
Therefore for computing the amount of interest cost to be capitalized during 2018 we simply applied the above formula.
Answer:
Option (a) is correct.
Explanation:
Manufacturing cost:
= Direct materials + Direct labor + Variable overhead + Fixed overhead
= $80,000 + $100,000 + $30,000 + $60,000
= $270,000
Purchase from outside:
= Fixed overhead + Purchase price
= $60,000 + (50,000 × $10)
= $60,000 + $500,000
= $560,000
Effect on income = Purchase from outside - Manufacturing cost
= $560,000 - $270,000
= $290,000
Therefore, the above calculations shows that income will decrease by $290,000.
Answer:
$9,000
Explanation:
Calculation of the amount that Deb must include in her gross income
Total assets $264,000 -Remaining loans $255,000 =$9,000
Therefore the amount that Deb must include in her gross income would be $9,000. Hence a discharge of indebtedness will not be taxable in a situation where the taxpayer is insolvent before and after the debt might have been forgiveness and in a situation where the the discharge of indebtedness tend to makes the taxpayer solvent, the taxpayer will tend ro recognizes the taxable income to the extent of his solvency.
Answer:
Since Store managers say they need same-day information on the company's advertising plans, store managers can email me directly for this information.
Explanation:
The situation at Swazzi is precarious since they are not selling the new line of sweater vests well enough to match their sales forecast.
Store managers who are interacting with the consumers at their different outlets will definitely try to find a way to drive sales, hence their request for same day advertising plans from the company.
Mitigating this short fall calls for escalating and responding to requests from the company and the store managers hence the need for a very fast and cost effective communication medium.
For swift communication between the company and store managers, it is okay for store managers to email their request directly and vice versa.
Answer:
The correct answer is letter "B": joint venture.
Explanation:
Two or more companies in a traditional joint venture plan to commit capital and resources to a specific project. Developers, manufacturers, and service providers typically agree to form a joint venture. If successful, those parties divide the income based on the value of their respective joint venture contributions.
