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GaryK [48]
2 years ago
7

Carlos drives to oregon to consult with a client. he works for 1 day and spends 3 days enjoying oregon since the consultation wa

s right before a 3-day weekend. his expenses were $175 to drive to oregon and back, $600 for lodging, $50 for food on the day that he worked, and $125 for food on the other 3 days. how much of his travel expenses are deductible?
Business
1 answer:
Assoli18 [71]2 years ago
7 0

Answer:

Explanation:

You are able to deduct expenses that are directly related to the business travel.

He can deduct the entire 175 for driving, since he would need to do that no matter if he stayed longer or not. Staying longer doesn't add any extra cost.

He can deduct lodging that covers the amount of time dedicated to business so of the 600 he can deduct 1/4 or $150 since only 1 of the 4 days was business related.

And the $50 for food for the day he spent on business

You might be interested in
Diane Corporation is preparing its 2012 balance sheet. The company records show the following selected amounts at the end of the
Temka [501]

Answer:

a. The working capital is $65,600

b. The quick ratio is 68%

The Working capital is important to financial management of a business, becuase it indicates the ability to pay its debts ot short-term liabilities

The quick ratio is a form of liquidity ratio, and this ratio is important to financial analysts becuase it measures the firms ability in meeting its short-term obligations and responsibilities with its most liquid assets.

if the company reported $250,000 worth of contingent liabilities in the notes to the statements the computations would not be different becuase there would be no effect on the balance sheet, as they are reported as notes to financial statements and the effect is found only when the contingent liabilities turns to a liability

Explanation:

a. In order to calculate working capital we would have to use the following formula:

Net working capital = Total current assets - Total current liabilities

Total current assets = Total assets - Total non current assets

= $530,000 - $362,000

= $168,000

Total current liabilities = Accounts payable + Income taxes payable + Wages payable + Property taxes payable + Notes payable (Due in 6months) + Interest payable + Rent revenue collected in advance + Liability for withholding taxes

Total current liabilities= $56,000 + $14,000 + $7,000 + $3,000 + $12,000 + $400 + $7,000 + $3,000

= $102,400

Therefore, working capital = $168,000 - $102,400

= $65,600

b) In order to calculate the quick ratio we would have to use the following formula:

Quick ratio = Total quick assets / Total current liabilities

= $70,000 / $102,400

= 0.68

The Working capital is important to financial management of a business, becuase it indicates the ability to pay its debts ot short-term liabilities

The quick ratio is a form of liquidity ratio, and this ratio is important to financial analysts becuase it measures the firms ability in meeting its short-term obligations and responsibilities with its most liquid assets.

if the company reported $250,000 worth of contingent liabilities in the notes to the statements the computations would not be different becuase there would be no effect on the balance sheet, as they are reported as notes to financial statements and the effect is found only when the contingent liabilities turns to a liability

4 0
2 years ago
Read 2 more answers
Consider two firms that compete in Cournot oligopoly. They face inverse demand p(Q) = 120−Q where Q = q1 +q2 is the sum of the t
coldgirl [10]

Answer:

Detailed step=wise solution is given below:

Explanation:

a)

P = 120 - Q = 120 - q1 - q2

MC1 = MC2 = 60

For Firm 1, Total revenue (TR1) = P x q1 = 120q1 - q12 - q1q2

Marginal revenue (MR1) = \partial TR1 / \partial q1 = 120 - 2q1 - q2

Equating MR1 and MC1,

120 - 2q1 - q2 = 60

2q1 + q2 = 60 ............(1) (Best response, Firm 1)

For Firm 2, Total revenue (TR2) = P x q2 = 120q2 - q1q2 - q22

Marginal revenue (MR2) = \partial TR2 / \partial Q2 = 120 - q1 - 2q2

Equating MR2 and MC2,

120 - q1 - 2q2 = 60

q1 + 2Q2 = 60 ............(2) (Best response, Firm 2)

Cournot equilibrium is obtained by solving (1) and (2)

2q1 + q2 = 60 ..............(1)

(2) x 2 results in:

2q1 + 4q2 = 120.............(3)

(3) - (1) results in: 3q2 = 60

q2 = 20

q1 = 60 - 2q2 [From (2)] = 60 - (2 x 20) = 60 - 40 = 20

Q = 20 + 20 = 40

P = 120 - 40 = 80

Market share, firm 1 = q1 / Q = 20 / 40 = 0.5 = 50%

Market share, firm 2 = q2 / Q = 20 / 40 = 0.5 = 50%

(b) HHI Index = (50)2 + (50)2 = 2,500 + 2,500 = 5,000

(c) A monopolist maximizes profit by equating MR with MC.

P = 120 - Q

TR = P x Q = 120Q - Q2

MR = dTR / dQ = 120 - 2Q

Equating MR & MC,

120 - 2Q = 60

2Q = 60

Q = 30

P = 120 - 30 = 90

In a monopoly, HHI = 10,000

Change in HHI = 10,000 - 5,000 = 5,000 (Increase)

(d) When MC = 30, equating MR & MC:

120 - 2Q = 30

2Q = 90

Q = 45

P = 120 - 45 = 75

In a monopoly, HHI = 10,000

Change in HHI = 10,000 - 5,000 = 5,000 (Increase)

6 0
2 years ago
When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8% cumulative prefer
sukhopar [10]

Answer:

1. Attached is the Stockholder's equity section of the company's balance at the end of the current year.

Preferred stock = 2,500 (half of 5,000) were issued at par value of $100 each = 2,500 * 100 = $250,000

Additional Paid in capital for Preferred stock = (103 - 100) * 2,500 = $7,500

Common stock = 59,000 issued at stated value of $2 = 59,000 *2 = $118,000

Additional Paid in capital for Common stock = (22 - 2) * 59,000 = $1,180,000‬

2. The Stockholder's equity section is prepared with the book values of the relevant entries. As such, it WILL NOT be affected by changes in market value.

7 0
2 years ago
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding c
Rina8888 [55]

Answer:

total inventory cost = $1500

total inventory cost = $1230

total inventory cost = $1200

total inventory cost = $1220

total inventory cost = $1500

economic order quantity = 50

Explanation:

given data

uses spare part =  1,200

cost = $25

annual holding cost = $24

to find out

Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 and economic order quantity

solution

we get here total cost of order size as

total inventory cost = C × 0.5Q + F × \frac{D}{Q}

here C is cost per unit and Q is order quantity and F is fixed cost and D is demand per year

so now we put first for 25 size

total inventory cost = C × 0.5Q + F × \frac{D}{Q}

total inventory cost = 24 × 0.5× 25 + 25 × \frac{1200}{25}

total inventory cost = $1500

and

now for order 40

total inventory cost = 24 × 0.5× 40 + 25 × \frac{1200}{40}

total inventory cost = $1230

and

now for order 50

total inventory cost = 24 × 0.5× 50 + 25 × \frac{1200}{50}

total inventory cost = $1200

and

now for order 60

total inventory cost = 24 × 0.5× 60 + 25 × \frac{1200}{60}

total inventory cost = $1220

and

now order size 100

total inventory cost = 24 × 0.5× 100 + 25 × \frac{1200}{100}

total inventory cost = $1500

and

now we find economic order quantity that is

economic order quantity = \sqrt{\frac{2CR}{H}}

economic order quantity = \sqrt{\frac{2*25*1200R}{24}}

economic order quantity = 50

8 0
2 years ago
Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting.
Orlov [11]

Answer:

Option (d) $5,000,000

Explanation:

Data provided in the question:

Reported revenues = $50,000,000

Operating expenses = $47,000,000

Net income = $3,000,000

Payroll costs included in the operating expenses = $15,000,000

Combined identifiable assets of all industry segments = $40,000,000

Now,

If the revenue derived from sales to any single customer is 10% or more of the revenue of an enterprise then the amount of revenue from each customer shall be disclosed.

Therefore,

Grum should disclose major customer data if

sales to any single customer amount at least = 10% of Reported revenues

= 10% of $50,000,000

= $5,000,000

Option (d) $5,000,000

7 0
2 years ago
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