Answer:
$224,000
Explanation:
The money which Berry and Mary gift to their children and grand children in 2017 without any gift tax liability is as follows:
Children:
According to the policy, they can gift up to $14,000, without gaining any gift tax liability.
So, amount given by them is $14,000 x 3 (number of children) x 2 (Barry and Mary) = $84,000
Grandchildren
:
According to the policy, Barry and Mary can gift up to $14,000 without gaining any gift tax liability.
So, amount given by them is $14,000 x 5(number of children) x 2 (Barry and Mary) = $140,000
And therefore, the total amount of estate removed from Barry and Mary's estate is as follows:
$84,000 + $140,000 = $224,000
Answer:
By producing the starters the company will save $20,000 per year.
Explanation:
production costs
direct materials $3.10 per unit
direct labor $2.70 per unit
supervision $60,000
depreciation $40,000
variable manufacturing overhead $0.60 per unit
rent $12,000
total production cost $9.20 per unit
The engineer is wrong because he is considering fixed costs like depreciation and rent that should not be included because they are independent on whether this project is approved or not. Once you take away depreciation and rent, the cost per unit will fall by $1.30 [= ($40,000 + $12,000) / 40,000 units].
Since the production cost = $9.20 - $1.30 = $7.90, which is lower than $8.40 which is the purchase cost, the company should start producing the starters at least until its sales bonce back.
By producing the starters the company will save ($8.40 - $7.90) x 40,000 units = $20,000 per year
Answer:
If a foreign government hires an American consulting firm to help the country's textile industry improve production operations, the contract is commercial, and if the foreign government refuses to pay, the consulting firm may sue the government in American courts.
False
Explanation:
Any company could be sued at anywhere so far there is bridge of agreement or contract, with the analogy above such consulting American company would be sued but in the above case, a consulting American firm can not sue themselves unless someone in the company sue the American consulting firm
