Answer: c) Equity reduces by $2,000
Explanation:
Expenses have the effect of reducing the income that the company would have made. That income is classified under equity as retained earnings so when expenses like office rent reduce the income, they are reducing the company's equity as well.
This is why expenses are debited when they increase because they reduce the equity accounts which are credited when they increase.
Can you dm me for the answer I’m not home rn I’m trying to help out a lot of people
Answer:
a. $140,000 decrease
Explanation:
![\left[\begin{array}{cccc}Year&continued&discontinued&differential\\Sales&680,000&0&-680,000\\variable \: cost&-540,000&0&540,000\\contibution&140,000&0&-140,000\\fixed \: cost&-145,000&-145,000&0\\net \: income&-5,000&-145,000&-140,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DYear%26continued%26discontinued%26differential%5C%5CSales%26680%2C000%260%26-680%2C000%5C%5Cvariable%20%5C%3A%20cost%26-540%2C000%260%26540%2C000%5C%5Ccontibution%26140%2C000%260%26-140%2C000%5C%5Cfixed%20%5C%3A%20cost%26-145%2C000%26-145%2C000%260%5C%5Cnet%20%5C%3A%20income%26-5%2C000%26-145%2C000%26-140%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The fixed cost would not be eliminated entirely and we have no information of any partial decrease. so the differential analysis shows a decrease in 140,000 in the net income if product T is discountinued
Answer: B : Trade deficit
If a land of Mercury had total exports of $150billion and total imports of $234billion, it had a "trade deficit".
Explanation:
Trade deficit can be termed an amount by which a country's costs of imports exceeds cost of exports. It is also known as negative balance of trade. Trade deficit is a term of trade that measures international trade.
Trade deficit is obtained by subtracting a country's export from its imports.
Mathematically :
Trade deficit = imports - exports
Trade deficit occurs when a country foreign debt is greater than what it produce for exports. Also when a country depends on another country for refinering their manufactured goods, such country will experience trade deficit.
It can be controlled by promoting constructions of refineries to process products, productions of raw materials for goods, improving exports and limiting imports.
Answer:
Net income = $180,000
- salaries = ($30,000 + $35,000 + $10,000 = $75,000)
adjusted net income = $105,000
the adjusted net income must now be divided equally between the 3 partners:
- Bonnie: $35,000
- Clyde: $35,000
- daughter: $35,000
Their yearly gross income:
- Bonnie: $35,000 + $30,000 = $65,000
- Clyde: $35,000 + $35,000 = $70,000
- daughter: $35,000 + $10,000 = $45,000
total taxable income = $65,000 + $70,000 + $45,000 = $180,000
