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2 years ago

Oliver owns Wifit, an unincorporated sports store. In 2019, Wifit earned $100,000 before Oliver drew out a salary of $60,000.

Business

1 answer:

oksano4ka [1.4K]2 years ago

8 0

Answer:

c. $7,650

Explanation:

As IRS regulate, the self-employment tax is 15.3% charged on business profit, but the IRS let the employer count half of tax, or 7.65%, as a business deduction for purposes of calculating the tax.

So in this case, Oliver’s 2019 deduction for self-employment taxes is $7,650 = $100,000 x 7.65%

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Brad, an employee for a sports marketing firm, feels he has been treated unfairly by the organization. He helped three other emp

lubasha [3.4K]

Answer:

Brad would likely to react by reducing the efforts on future projects.

Explanation:

In accordance with the equity theory, it states that if an employee feels or perceive inequity, then they will try to create equitable exchanges of their rewards and their efforts. The common reaction in this situation would be is to reduce the efforts on further or future project.

6 0

2 years ago

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credi

kupik [55]

Answer and Explanation:

1.a. The Journal entries are shown below:-

Refund liability Dr, $328,000

To Account Receivables $328,000

(Being actual sales return of merchandise sold is recorded)

b. Inventory Dr, $229,600 ($328,000 × 70%)

To Inventory—estimated returns $229,600

(Being cost of merchandise returned for goods is recorded)

c. Sales returns Dr, $266,000 ($594,000 - $328,000)

To Accounts receivable $266,000

(Being actual sales return of merchandise is recorded)

d. Inventory Dr, $186,200 ($266,000 × 70%)

To Cost of Goods Sold $186,200

(Being cost of merchandise returned for goods is recorded)

e. Sales returns Dr, $ 307,000

To Refund liability $307,000

(Being year-end adjusting entry for estimated returns is recorded)

f. Inventory Dr, $214,900 ($307,000 × 70%)

To Cost of Good Sold $214,900

Estimated returns of 2021 sales = 5% × $12,100,000 $ 605,000

Less: Actual returns of 2021 sales ($266,000)

Remaining estimated returns of 2021 sales $ 339,000

2. The computation of amount of the year-end refund liability after the adjusting entry is shown below:-

Beginning balance in refund liability $360,000

Less: Actual returns of pre-2021 sales ($328,000)

Add: Adjustment needed $307,000

Ending balance $339,000

6 0

2 years ago

Halverstein Company's outstanding stock consists of 8,050 shares of cumulative 5% preferred stock with a $10 par value and 3,450

Licemer1 [7]

Answer:

$6,900 to preference shareholders

Explanation:

The computation of the amount of dividends paid to preferred and common shareholders in Year 2 is shown below:

The Preference dividend is

= 8,050 shares × $10 × 5%

= $4,025

And, since the preference dividend is cumulative plus the in year 1 there is no dividend paid and in year 2 the dividend amount given is $6,900

But the total value is

= $4,025 + $4,025

= $8,050

So the total amount i.e $6,900 is paid to preferred shareholders only

3 0

1 year ago

Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is

Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock ) .................1

intrinsic value = $\frac{3}{(0.10-0.09)}$

intrinsic value = $\frac{3}{0.01}$

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0

2 years ago

For each of the following three scenarios, would you rather: a. Receive $100 in one month or $100 in two months (most people pre

Kryger [21]

Answer:

I would Like to receive $100 in one month rather in two months.

I would like to take to take dinner in one month rather in two months.

Explanation:

Time value of money money describes that the amount now in hand is worth more rather having it after some time. All the money have potential earning capacity and it earn with the passage of time as time gone the earning will also lost. That is why it is better to receive money in one month rather in two months and have dinner in one month rather in two months.

8 0

2 years ago