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musickatia [10]
2 years ago
9

Jamari conducts a business with the following results in 2020: Revenue $20,000 Depreciation on car 3,960 Operating expenses of c

ar 3,100 Rent 6,000 Wages 8,200 Amortization of intangibles 680 Jamari estimates that due to a depressed real estate market, the value of land owned by the business declined by $5,200. a. Calculate the effect of Jamari's business on his AGI. Jamari's business has a of $fill in the blank d33155077fa8faf_2 which is reported on his tax return. b. How would your answer in part (a) change if the activity was a hobby
Business
1 answer:
Ymorist [56]2 years ago
5 0

Answer:

A. Net loss; $1,940; For AGI

B. $20,000 ;$20,000; But Will Not Be Deductible

Explanation:

1. Calculation to determine what Jamari's business has and the amount which is reported on his tax return

Calculation for Net Income / (loss)

Revenue $ 20,000

Less:

Depreciation on Car ($3,960)

Operating Exp of car ($3,100)

Rent ($6,000)

Wages ($8,200)

Amortization of intangible ($ 680) ($21,940)

Net Income / (loss) $ -1,940

($20,000-$21,940)

Therefore Jamari's business has a NET LOSS of $1,940 which is reported FOR AGI (ADJUSTED GROSS INCOME) on his tax return

B . Based on the information given we were that the REVENUE is the amount of $20,000 which means that in a situation where the activity was a hobby Jamari will report $$20,000 as income. Of his expenses, $20,000 are ALLOWED BUT WILL NOT BE DEDUCTIBLE on his tax return.

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Answer:

a. Milo should disclose all the information about the product

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Explanation:

a.

A customer service agent is someone who offers assistance to it's customers on behalf of the company. The agent covers issues like; answers questions about the product and guides the customers on how to use the product. Customer services has become more necessary in the recent past due to advancement in communication technology and high competition. Good customer service ensures that a company can retain and get more customers to purchase it's products. When more customers purchase a product, the sales also increase significantly. More sales translates to increased profits, which is the goal of most business organizations. Some of the customer service skills that can assist a company to achieve increased sales are;

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b.

In this case, Milo is showing honesty. By disclosing all the information about the product, Milo is being honest about what the product is going to offer and it's associated price. Honesty fosters trust in customers. When a customer fully trusts you, they would rather purchase your product at a slightly higher price than settle for a product whose qualities is not guaranteed.

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Answer:

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The satisfactory rate of return that would be expected of the advisor is computed below:

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Answer:

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