Answer and Explanation:
a. The computation of Kiyara’s deduction for qualified business income is shown below:-
Kiyara's Share of income is
= 50% × $332,000
= $166,000
Max qualified business deduction is
= 20% × $166,000
= $33,200
b. The computation of Kiyara’s net investment income tax liability is shown below:-
Net investment income tax liability = $166,000 × 3.8%
= $6,308
c. The computation of Kiyara’s self-employment tax liability is shown below:-
Kiyara is not earning Jazz Corp.'s self-employment taxable income because Kiyara is not doing work for Jazz Corp.
Hence, the tax liability for self-employment is 0.
d. The computation of Kiyara’s additional Medicare tax liability is shown below:-
Additional medicare tax liability
= $282,000 - $200,000
= $82,000 × 0.9%
= $738
Answer:
The Warren's total assets at the end of April is $345,000
Explanation:
The computation of the ending total assets value is shown below:
= Total assets - sale of stock + machine purchased - cash payment for purchase of building + purchase of short term investment - cash payment for purchase of short term investment - cash paid to the employee as a loan + notes issued
= $240,000 + $20,000 + $95,000 - $10,000 + $9,000 - $9,000 - $10,000 + $10,000
= $345,000
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Expected sales volume (units):
Area X 4,000
Area Y 10,000
Area Z 6,000
Unit sales price $25
The total budgeted sales are the result of multiplying the sales in units for the selling price:
Total sales= selling price* number of units
Total sales= (4,000 + 10,000 + 6,000)*25= $500,000
Answer: Martina should draft a memo for the files indicating that Breslin is a difficult client.
Explanation: The tax professional ethics standard states that one has to be under the rules and regulations that abides the profession, most especially the AICPA (American Institute of Certified Public Accountants). This means that for one to be ethical, the person's practice must be professional and in accordance to rules.
Because Martina has to be ethical, and also secure her client, she has to disclose the matter the way her clients wants it, but she also has to indicate that Breslin is a difficult person, so that her disclosure won't appear unprofessional, and for her license to be secured.
It will be unprofessional if Martina cannot handle a difficult clients. It is also unprofessional if Martina option becomes quiting or being sacked for not delivering a job.
Answer:
The answer is <em>elastic; decrease</em>
Explanation:
Price elasticity of demand (PED) = %change in QD/ %change in price
PED = (2-1.55/1.55 ) * 100 / (160-220/220) *100 = 1.065
PED is elastic
Total revenue before price change = 1.55*220= $341.00
Total revenue after price change = 2* 160 = $320.00
Total revenue decreased by $21.00
