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jok3333 [9.3K]
2 years ago
4

Your friend Alice is a full-time college student, earned $4,000 working at the campus bookstore over two semesters last calendar

year, and also got a part-time job as a cashier in February, earning $9,500. Alice knows that you have been learning about taxes in your personal finance lessons and asks you, “Do I need to file taxes this year? If I do, what is the process like?”
Business
1 answer:
avanturin [10]2 years ago
8 0

Single, under the age of 65 and not older or blind, you must file your taxes if: Unearned income was more than $1,050. Earned income was more than $12,000. Gross income was more than the larger of $1,050 or on earned income up to $11,650 plus $350.

Sorry, I can not answer the second part to the question sorry.  

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Prepare a net worth statement for Ben Lingo based on this information: He owns a car worth $2,000, but owes $1,500 on it at the
Murljashka [212]

Answer:

Ben Lingo's Net Worth Statement:

Assets:

Cash $82

Savings $150

Car $2,000

Inventory $1,200

Total Assets = $3,432

Liabilities:

Car loan $1,500

Credit Union loan $80

Total Liabilities = $1,580

Net Worth = Total Assets - Total Liabilities

                 = $3,432 - $1,580

                 = $1,852

5 0
2 years ago
On January 1, 2019, Shields, Inc., issued $800,000 of 9%, 20-year bonds for $879,172, yielding a market (yield) rate of 8%. Semi
Ghella [55]

Answer:

cash 879,172 debit

   bonds payble   800,000 credit

   premium on BP    79,127 credit

--to record issuance--

Interest expense 35,166.84 debit

premium on BP      833.16 debit

cash                    36,000 credit

--to record first interest payment--

Interest expense 35133.52 debit

premium on BP          866.48 debit

cash                       36,000 credit

--to record second interest payment--

<em><u>Financial Statement effect:</u></em>

<em><u>Cash flow:</u></em>

financing:

proceed from bonds 879,172

interest paid                 72,000

<em><u>Net income</u></em>

interest expense 35,133.52 + 35,166.84 = 70.250,36

<em><u>Balance sheet</u></em>

Bonds payable   800,000

Premium on Bonds 77,471

Explanation:

The price will be the discounted future coupon and maturity payment at market rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 36,000.000 (800,000 x 9% x 1/2)

time 40 ( 20 years x 2)

rate 0.04 (8% x 1/2)

36000 \times \frac{1-(1+0.04)^{-40} }{0.04} = PV\\

PV $712,539.8598

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   800,000.00

time   40.00

rate  0.04

\frac{800000}{(1 + 0.04)^{40} } = PV  

PV   166,631.24

PV c $712,539.8598

PV m  $166,631.2357

Total $879,171.0955

The interest expense will be the carrying value times market rate

the cash outlay will be the same for each period:

principal x coupon rate x half-year as payment are semiannual.

800,000 x 0.09 x 1/2 = 36,000

The difference between each one will determinate the amortization onthe premium

6 0
2 years ago
On January 12, JumpStart purchased $870 in office supplies. (a) Journalize the transaction as if JumpStart paid cash. Jan. 12 (b
Mumz [18]

Answer:

Part a : If JumpStart paid cash

Office Supplies $870 (debit)

Cash $870 (credit)

Part b : If JumpStart placed it on account

Office Supplies $870 (debit)

Account Payable $870 (credit)

Part c : If JumpStart pays the amount due

Account Payable $870 (debit)

Cash $870 (credit)

Explanation:

Part a : If JumpStart paid cash

Recognise an expense for Office Supplies and reduce the assets of cash to reflect outflow of economic benefits in form of cash

Part b : If JumpStart placed it on account

Recognize an expense for Office Supplies and also recognise a Liability - Accounts Payable to reflect a present obligation created by JumpStart to its Supplier

Part c : If JumpStart pays the amount due

Derecognise the Liability - Accounts receivable since the liability has been settled and reduce the assets of cash to reflect outflow of economic benefits in form of cash due to settlement of Account

6 0
2 years ago
On March 1, 2018, Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral
N76 [4]

Answer:

B) $20,697.

Explanation:

For computing the accretion expense, first we have to determine the present value which is shown below:

Present value would be

= Annual cash flows × PVIF factor for five years at 10%

where,

Annual cash flows would be

= Probability × cash outflows + Probability × cash outflows + Probability × cash outflows

= 25% × $300,000 + 50% × $400,000 + 25% × $500,000

= $75,000 + $200,000 + $125,000

= $400,000

And, the PVIF would be 0.62092. Refer to the PVIF table

So, the present value would be

= $400,000 ×  0.62092

= $248,368

Now the accretion expense would be

= $248,368 × 10% × 10 months ÷ 12 months

= $20,697

The 10 months are computed from March 1 to December 31 and we assume the books are closed on December 31

4 0
2 years ago
Analyzing and Determining Liability Amounts
EastWind [94]

Answer:

a) $250,000

b) Zero

c) $6,100

d) $47,500

Explanation:

a) Bloomington owes $250,000 at year-end 2016 for inventory purchase.\

This relates to account payable and the amount to be reported as liability as at year-end 2016 is $250,000.

b)Bloomington agreed to purchase a $31,000 drill press in January 2017.

No liability will be recognized at year-end because the entity has no present obligation as there is no legal or constructive responsibility to pay $31,000. What occurred is just an agreement that can be altered.

c) During November and December of 2016, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2017 are $6,100.

The entity will recognized $6,100 as warranty payable as the entity has a present obligation as at year-end 2016 to compensate the customer.

d)Bloomington provides a profit-sharing bonus for its executive equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $950,000. Bonuses are not paid until January of the following year

The entity will report 5% of $950,000 ($47,500) as liability at year-end 2016 as the the entity has a present obligation to settle its executive.

7 0
2 years ago
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