Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. 18). Seasons Construction completes the remaining 25% of the building construction on December 31, 2020, as scheduled. At that time the total costs of construction are $18,750,000.What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Seasons will recognize for the year ended December 31, 2020?
Revenue Expenses
(A) $18,600,000 $18,750,000
(B) $4,650,000 $ 4,687,500
(C) $4,650,000 $ 5,250,000
(D) $4,687,500 $ 4,687,500
Answers
Answer:
(C) $4,650,000 $ 5,250,000
Explanation:
total contract price is $ 18,600,000
season construction using percentage of completion method.
Amount of revenue & construction expense for the year ended december 31, 2020 will be
25% of $ 18,600,000 revenue = $ 4,650,000
25% of $ 18,750,000 total cost = $5,250,000
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Answers
Answer:
Horizontal expansion model
Explanation:
Renovation in Horizontal expansion model is one in which current business is upgraded with some new features to add value and another branch is opened to serve its customers. The customers needs are kept in mind before going for a renovation process.
Answers
Answer:
increases the opportunity cost of holding money
Explanation:
An increase in the interest rate actually increases the opportunity cost of holding money.
The opportunity cost of holding money is the nominal interest rate. Opportunity cost can be referred to as the interest rate that is forgone on alternative assets. So, when interest rate increases, the opportunity cost of holding money also increases.
180,000
Medical insurance premium paid for his staff
10,000
Office staff salary expense
40,000
Medical insurance premium paid for himself
7,000
Office rental expense
30,000
Unreimbursed medical expenses paid for himself
5,000
Which of the following statement is correct?
A. Jordan will report $93,000 as his business income (from Schedule C) and his AGI is $88,000.
B. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is 93,000.
C. Jordan will report $110,000 as his business income (from Schedule C) and his AGI is $95,870.
D. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $80,935.
E. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $85,935.
Answers
Given:
Commission income = $180,000
Medical insurance = $10,000
Salary expense = $40,000
Medical insurance premium paid for himself = $7,000
Office rental expense = $30,000
Medical expenses paid for himself = 5,000
Computation of business income:
Business income = Total revenue - Total expenses
Business income = $180,000 - ($10,000 - $40,000 - $30,000)
Business income = $180,000 - $80,000
Business income = $100,000
Note: Self-incurred expenses are not included in business expenses.
Computation of AGI:
AGI = Business income - Deduction from schedule c
AGI = $100,000 - Medical insurance premium paid for himself
AGI = $100,000 - $7,000
AGI = $93,000
Therefore, option "B" is the correct answer to the following question.
Final answer:
Jordan's business income is $100,000 (derived from his commission income minus his business expenses) and his Adjusted Gross Income is $93,000 (calculated as business income minus personal deductions). Hence, Option B is the correct answer.
Explanation:
Jordan's business income can be calculated as his commission income minus his business expenses. His business expenses consists of medical insurance premiums for his staff, office staff salary, and office rental expense. Therefore, his business income would be $180,000 - ($10,000 + $40,000 + $30,000) = $100,000. Adjusted Gross Income (AGI) is calculated as business income minus personal deductions. In Jordan's case, he has a personal deduction of $7,000 (medical insurance premium paid for himself). Thus, his AGI would be $100,000 - $7,000 = $93,000. Therefore, the correct answer is B: Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $93,000.
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Answers
Option A
Explanation:
The following formula will be used while calculating the amount
The Amount in y year from x year dollar = ( the amount in x year / CPI of the x year) * CPI of the y year
the amount today
Solving the above equation, we get, = $37.5
the $10 in 1967 will purchase equal to the amount of $37.5 today
Therefore, the Option 1 is the correct option from the given ones.
Answers
Answer:
It would be bettter to make an agreement with the car dealer for the 32,000 in 4 years.
Explanation:
We will y comparing the value of the loan in 4 years;¿ with the 32,000 in for years option:
Principal $ 29,000.00
time 4 years
rate 3% = 3/100 = 0.030
Amount $ 32,639.76
Which is higher than the 32,000 option. Therefore, the loan option is more expensive than the financing through the car dealer.
It is a better option to make deal with the car seller.
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?
Answer
a.
Scissorwire Inc. can register with the SEC at any point after the dip in shares.
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.
c.
The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.
d.
Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.