Question 4 Chen's business turnover in the current year is $400,000. His opening stock is valued at $56,000 and closing stock valued at $60,000 based on market selling value and $59,000 based on cost using the FIFO method. He made purchases of $350,000. Calculate Chen's gross profit for the business assuming Chen has made all the required elections as a small business entity (SBE) to minimize his taxable income. Please complete the blank with just the figure without any dollar signs. Gross Profit =

Question 4 Chen's business turnover in the current year is $400,000. His opening stock is valued at $56,000 and closing stock valued at $60,000 based on market selling value and $59,000 based on cost using the FIFO method. He made purchases of $350,000. Calculate Chen's gross profit for the business assuming Chen has made all the required elections as a small business entity (SBE) to minimize his taxable income. Please complete the blank with just the figure without any dollar signs. Gross Profit =

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

3 Net Income. A calendar year S corporation has the following information for the current taxable year: Sales $180,000 Cost of goods sold. Dividend income Net capital loss Salary to Z. Life insurance for Z (70,000) 5,000 (4,000) 12,000 500 Other operating expenses Cash distributions to owners 40,000 20,000 Assume Z is single and her only other income is $30,000 salary from an unrelated employer. She is a 20% owner with a $10,000 basis in the S stock at the beginning of the year. Calculate the S corporation's net ordinary income and Z's adjusted gross income and ending basis in the S corporation stock.
None
1.(3)
Mr. Khalid contributed inventory of OMR 10000 and cash OMR 22000 . His total capital for his new business will : Select one: a. Decrease by OMR 32000 b. Increase by OMR 22000 c. Increase by OMR 32000 d. Increase by OMR 10000
A
Vijay
55)Grounds for Divorce Coffee Corporation had sales of $3 million this past year. Its cost ofgoods sold was $1.1 million and its operating expenses were $400,000. Interest expenseson outstanding debts were $160,000, and the company paid $40,000 in preferred stockdividends. The company received interest income of $14,000. Determine Grounds’taxable income.
19. Michael Campbell, age 66, is an instrument technologist in the bauxite industry. Michael provides you with the following information to compute his income tax liability for year of assessment 2013. The profit and loss account relating to the business as at December 31, 2013 is as follows: Revenue from instrument contracts Other income Less Expenses: Wages & salaries Utilities Depreciation Legal fees General expenses Professional fees Net Profit $ 700,000 280,000 570,000 820,000 730,000 680,000 228 Trade, Business, Profession & Vocation Continued $ 10,200,000 70,000 3,780,000 6,490,000 Notes • The legal fees relate to the new building purchased during the year. Included in general expenses are utility bills amounting to $75,000 paid by the business for Michael's house. . Other income relates to gross interest on a fixed deposit received as follows: Gross interest for the period January to June received July 31, 2013 amounted to $60,000, tax deducted at source was $15,000. Gross…
Foc Don't upload any image please
Income from Continuing Operations
What is the solution for this question
2 Nunez Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, Nunez paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, Nunez had $64,600 of inventory on hand. Required: a. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. b. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the accrual method as its overall method of accounting. Complete this question by entering your answers in the tabs below. Required A Required B Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. Cost of goods sold