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- Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income Travel Contribution to Presidential Election Campaign Transportation 5,300 miles equally across the year, using standard mileage method Entertainment in total Nine gifts at $50 each Rent and utilities for apartment in total (25 percent is used for a home office) Gross income Expenses: Travel Political contribution Transportation Entertainment Complete the table below to determine the net income Margaret should show on her Schedule C. If an amount is zero, enter "0". If required, round the amounts to the nearest dollar. Gifts Rent and utilities Total expenses Taxable business income 45,000 1,000 0 0 225 $45,000 1,000 100 2,625 X X ? X 4,200 450 10,50053 ).
- Assume you wrote up a proposal requesting $5000 for charity. The money would be used to buy food that volunteers (employees from the company) would distribute to the homeless on Saturday. The proposal is approved and you receive the money. However, the CEO comes to you and asks, "What will be the return on the investment?" How would you reply?An international children’s charity collects donations, which are used to buy clothing and toysfor children in need. The charity records donations of cash and other items as Donations Revenuewhen received. Prepare journal entries for the following transactions, which occurred during arecent month, and determine the charity’s preliminary net income.a. Received $4,000 in cash and checks from a door-to-door campaign.b. Paid $2,000 cash for employee wages this month.c. Paid $1,000 cash on a short-term loan from the bank (ignore interest).d. Bought $3,000 worth of new toy supplies from a large toy manufacturer, paying $1,000 cashand signing a short-term note for $2,000.e. The manufacturer generously donated an additional $2,500 of toy supplieMrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows what each sister did with their investment and how it changed over 8 years. Use the chart to answer the following questions please 1. What is the balance of Michelle's $3000 after 8 years? 2. What is the balance of Kristen's $3000 after 8 years? 3. What is the balance of Gabriella's $3000 after 8 years? 4. What is the balance of Judy's $3000 after 8 years? 5. Who has the most money at the end of the 8 years? If i were to choose one of the options to use for my own money, which option should I choose?
- 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 correctBilly is employed a construction worker. During the current income year, he incurs the following work-related expenses: 6 plain cotton shirts @ $50 each $300 5 pairs of plain cotton trousers @$80 each $400 2 Hi-vis safety vests @ $40 each $80 1 Hard hat $60 1 pair of steel-capped safety boots $160 10 pairs of thick woollen socks @ $15 each $150 Based on the above information, what is the value of Billy’s TOTAL DEDUCTION ENTITLEMENT for his work-related expenses in the current income year? [A] $160 [B] $220 [C] $240 [D] $300 [E] $1,000Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she designs and make evening gowns to earn an extra living. She also invested the money she made out of her dress-making business and are earning dividends. She incurred the following expenses: Purchase material to use in her dress-making business, Purchase material to make herself a new dress, Purchase a computer to use in her business to take orders from clients, and Purchase a new sewing machine. YOU ARE REQUIRED to choose the incorrect answer. Select one: O a. The material purchase to use in her business will be deductible in terms of the general deduction formula. O b. The new sewing machine will not be deductible in terms of the general deduction formula. O c. The material purchase to make herself a new dress will not be deductible in terms of the general deduction formula. d. The computer purchase for her business will be deductible in terms of the general deduction formula.
- On December 15, Judy wrote a letter to David stating that she would sell to David all of the mine-run coal that David might wish to buy during the next calendar year for use at David’s factory, delivered at the factory at a price of $30.00 per ton. David immediately replied by letter to Judy, stating that he accepted the offer, that he would purchase all of his mine-run coal from Judy, and that he would need two hundred tons of coal during the first week in January. During the months of January, February, and March, Judy delivered to David a total of seven hundred tons of coal, for all of which David made payment to Judy at the rate of $30.00 per ton. On April 10, David ordered two hundred tons of mine-run coal from Judy, who replied to David on April 11 that she could not supply David with any more coal except at a price of $38.00 per ton delivered. David thereafter purchased elsewhere at the market price, namely $38.00 per ton, all of his factory’s requirements of mine-run coal for…KA. Luna is a member of the Sidewalk Players, a band that performs on sidewalks around New York. The band regularly practices at a local community center. Luna, who plays the trumpet in the band, recently bought a new trumpet, and is interested in selling her old one. She posts the following notice at the community center: Offering the following trumpet for sale for $500 (picture of trumpet inserted) to members of the Sidewalk Players. If you are interested, please email Luna at lunasidewalkplayers a. Jared is not a member of the Sidewalk Players but sees the notice and emails Luna. May he accept the offer? b. Kayla is a member of the Sidewalk Players. She emails the following to Luna, “I am interested in buying the trumpet but will not pay more than $400. Are you interested in selling it for $400?” When Kayla does not here back from Luna after a week, she proceeds to send her a second letter that states, “I accept your offer to sell the trumpet pictured in your notice for $500.”…Erica trades as a financial adviser. She rents an office in the town centre and employs three full-time staff. She advises clients on how to manage their savings, investments and pension funds. Erica decided that she needed a new computer system for the business in order to improve efficiency. The following expenditure was incurred when the new system was purchased: Cost of computer $1900 Paper, ink cartridges and other consumables $110 Cost of colour laser printer $450 Installation and testing costs $200 Staff training on new system $500 Annual insurance against theft and breakdowns $90 Cost of rewiring to accommodate new computer $340 Annual maintenance agreement $99 REQUIRED: Calculate the total of capital expenditure incurred by Erica’s business when acquiring the computer system. To what extent would the business’s profits have been reduced by the expenditure listed. If Erica had borrowed $3000 to pay for the new computer system, how would the interest payments on the…