Sharon made a $60,000 interest-free loan to her son, todd, who used the money to start a new business. todd’s only sources of income were $25,000 from the business and $490 of interest on his checking account. the relevant federal interest rate was 5%. based on the above information: a. todd’s business net profit will be reduced by $3,000 (.05 × $60,000) of interest expense. b.sharon must recognize $3,000 (.05 × $60,000) of imputed interest income on the below- market loan. c.todd’s gross income must be increased by the $3,000 (.05 × $60,000) imputed interest income on the below market loan. d.sharon does not recognize any imputed interest income and todd does not recognize any imputed interest expense. e.none of the above is correct.
Answers: 2
Business, 21.06.2019 20:40, stephanie37766
Ail industries uses activity-based costing to assist management in setting prices for the company's three major product lines. the following information is available: activity cost pool estimated overhead expected use of cost driver per activity cutting $1,000,000 25,000 labor hours stitching 8,000,000 320,000 machine hours inspections 2,800,000 160,000 labor hours packing 960,000 64,000 finished goods units compute the activity-based overhead rates. (round answers to 2 decimal places, e. g. 12.25.)
Answers: 2
Business, 23.06.2019 01:40, sospls352
During a liquidation, a partner's capital account balance drops below zero. what should happen? select one: a. the deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. b. the partner with a deficit should contribute enough assets to offset the deficit balance if he is solvent. c. the other partners should contribute enough assets to offset the amount of deficit if the partner with a deficit is insolvent. d. both b & c
Answers: 3
Sharon made a $60,000 interest-free loan to her son, todd, who used the money to start a new busines...
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