Answer:
(2) I. Express appreciation for trusting you to handle taxes II. Explain situation A. Unexpected income B. Change in tax codes III. Inform the client he owes an additional $10,000 in taxes IV. Close with a forward-looking statement.
Explanation:
This would be the best way to address this situation. In this example, the client is likely to be angry and upset when he realizes about the changes in his taxes. Therefore, you should try to preempt this situation. By expressing appreciation for using you to handle his taxes, you begin in a positive and friendly note. Moreover, you should proceed to explain the situation, inform him of the changes, and end on a kind note.
Answer:
Break-even level of output = 56
Explanation:
Given:
Annual Revenue = $1,300
Total Fixed cost = $28,000
Variable cost = $800
Computation of contribution:
Contribution = Sales - Variable cost
Contribution = Revenue - Variable cost
Contribution = $1,300 - $800
Contribution = $500
Computation of Break-even level of output:
Break-even level of output = Total Fixed cost / Contribution
Break-even level of output = $28,000 / $500
Break-even level of output = 56
Answer:
a. For both restaurants to abide by the cartel’s agreement.
Explanation:
These type of agreements unite companies that have common interests or are in a similar industry to form an association.
Answer:
$1,700
Explanation:
Given that,
Purchase of raw materials inventory = $1,000
Assignment of raw materials inventory to Job 5 = $500
Payroll for 20 hours with $1,000 assigned to Job 5
Factory utility bills = $750
Overhead applied at the rate = $10 per hour
Cost assigned to Job 5 at the end of the week:
= Raw materials inventory to Job 5 + Labor cost + Manufacturing Overhead applied
= $500 + $1,000 + ($10 per hour × 20 hours)
= $500 + $1,000 + $200
= $1,700
Answer: $6780
Explanation:
Asset recorded in books of timble will be:
= (PVAF at 5%, 8 × Annual CF) + (PVAF at 5%,8 × salvage)
where CF = cash flow
PVAF = present value of annuity factor
= (6.80 × 9000 ) +(0.66 × 10000)
= 61200+ 6600
= $ 67800
Since the equipment has an expected life of ten years with no anticipated salvage value, then the depreciation will be:
Depreciation = 67800 ÷ 10
= $ 6780