During 2021, Stork Associates paid $63,000 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $75 to $225 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event (provided by a local restaurant) at a cost $2,800. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event? 2,800

During 2021, Stork Associates paid $63,000 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $75 to $225 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event (provided by a local restaurant) at a cost $2,800. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event? 2,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Parokya ni Edgar Band will perform at the Eastern Visayas State University soccer field (2,500-person capacity) on February 12, 2021 during the Foundation Day Celebration of the University. The school administration has approached the Junior Philippine Institute of Accountants (JPIA) to take charge of the said event. The university will be charging JPIA for ₱120,000 for the facilities and ₱8 for each ticket sold. The organization asks you, as a member of JPIA to determine how much to charge for each ticket. The JPIA organization wants to make a profit of ₱40 per ticket sold. You assume that 1,500 tickets will be sold. a. What is the total cost of the organization if 1,500 tickets are sold? b. What price per ticket must be charged for JPIA to earn its desired profit margin? c. Suppose that on February 12, 2021, a major typhoon hit the area, bringing in two meters height of flood. Only 500 tickets are sold because most students were going to buy their tickets at the entrance of the…
An employee was provided with a company car for the whole of 2020. The car originally cost $50,000 and has a current net book value of $10,000. The car was driven a total of 40,000 km - 27,000 km was for driving to clients' offices; and 13,000 km was going to and from the office. The company paid the $5,000 of operating expenses. What would be the minimum amount of the auto benefit for 2020 (round to nearest dollar)? Multiple Choice $11,438 S1698 $4,025 S13.625 Activate Window Go0Setgeto Ac
During 2021, Stork Associates paid $85,800 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $50 to $150 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event (provided by a local restaurant) at a cost of $1,800. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event?$fill in the blank 1
Your company operates a theme park, which has the latest rides and an annual attendance of over 10 million people (around 60,000 people within approximately 80 hectares of guest area on a normal day). In August 2021, a very strong typhoon devastated the area. The roofs were blown away, the Ferris wheel fell down and most of the rides would need major repairs. As the accountant of the company, you are aware that the entity has property all-risk insurance, which covers material damage and business interruption. How would you account for the financial impact of these transactions?
A college plans to build a new dormitory building. A group of alumni volunteered to donate enough funds to cover all the maintenance cost of the dormitory. As an analyst working for the college, you are asked to determine the amount of the donation. You are told that the maintenance cost of the dormitory will be $35,000 per year for the first 20 years. Then it will increase to $45,000 per year for years 21 through 30, and to $60,000 per year after that. The dormitory is assumed to have an indenite service life. The college will place the funds on an account that will pay 12% interest compounded annually. How large should the donation be? A) $500,000 B) $304,478 C) $347,231 D) Answers A, B and C are not correct
am. 102.
10-15. Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2019, the organization had the following account balances: [See attached image] The following took place during 2020: 1. Additional supplies were purchased on account in the amount of $16,050.2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 4 percent is expected to be uncollectible. The remainder is expected to be collected in the current year.3. Supplies used for animal care amounted to $17,200.4. Payments made on accounts payable amounted to $17,100.5. Cash collected from pledges totaled $90,500.6. Salaries were paid in the amount $47,500. Included in this amount is the accrued wages payable at the end of 2019. (The portion of wages expense attributable to administrative expense is $15,000 and fund-raising expense is $2,000. The remainder is for animal care.)7.…
Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2024, Vail sells gift cards (lift passes) for $116,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2025. Customers redeem gift cards of $21,600 in December, $31,600 in January, $26,600 in February, and $16,600 in March. Required: 1. to 4. Record the necessary entries in the Journal
Caring Shop is a gift shop located in The Natural History Museum. Caring shop has annual sales revenue of $850,000. Additionally, the Natural History museum has investment income of $550,000 from its endowment, and an annual operating budget of $3 million. Both the income from the gift shop and the endowment income are used to support the exempt purpose of the museum. The balance of funding required for annual operations is provided through admission fees. Dan Nolan, a new board member, does not understand why the museum is subject to tax at all, particularly because all of the entity's profits are used in carrying out the mission of the museum. Assume instead that the endowment income is reinvested in the endowment fund, rather than being used to support annual operations. Calculate the amount of unrelated business income.
A local chapter of the Society for Protection of the Environment benefited from the voluntary services of two attorneys. One served as a member of the Society's board of directors, performing tasks comparable to other directors. During the year, he attended 20 hours of meetings. The other drew up a lease agreement with a tenant in a building owned by the Society. She spent five hours on the project. The billing rate of both attorneys is $200 per hour. In the year in which the services were provided, the Society should recognize revenues from contributed services of
SAD paid $240,000 in net wages to its employees in August 20X2. Employees' tax was $24,000, employees' national insurance was $12,000 and employer's national insurance was $14,000. Employees had contributed $6,000 to a pension scheme and had voluntarily asked for $3,000 to be deducted for charitable giving. The amount to be charged to the income statement in August 20X2 for wages is $ ........................................
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $157,000 and sold them for $294,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 3 percent of sales. During the year, she paid $1,970 cash to replace a defective tuner. Required a-1. Prepare an income statement for Deloch's first year of operation. a-2. Prepare a statement of cash flows for Deloch's first year of operation. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Prepare a statement of cash flows for Deloch's first year of operation. (Cash outflows should be indicated with a minus sign.) DELOCH STEREOS Statement of Cash Flows