jack operates an accounting practice out of the spare bedroom in his 8-room house.This room is jack's principal place of business and it is used exclusively for business purposes.Last year,jack paid $600 for home insurance ,$1400 in utilities ,$2,400 in property tax,$5,600 in mortgage principal and $8,900 in mortgage interest .He does not claim capital cost allowance.How much can jack deduct as a business-use-of-home expense?
Answers
Jack can deduct $5,800 as a business-use-of-home expense.
To calculate the business-use-of-home expense, Jack needs to determine the portion of his home expenses that is attributable to his business use. Jack can deduct expenses related to the business use of his home, such as insurance, utilities, property tax, mortgage interest, and maintenance costs. However, mortgage principal payments are not deductible.
In this case, Jack paid $600 for home insurance, $1,400 in utilities, $2,400 in property tax, and $8,900 in mortgage interest. These expenses are all eligible for deduction. However, the $5,600 in mortgage principal payments cannot be deducted.
To determine the deductible portion, Jack needs to calculate the percentage of his home used for business purposes. Since the spare bedroom is used exclusively for business and is Jack's principal place of business, he can consider it as the business portion of his home.
If the spare bedroom represents 1 out of the 8 rooms in Jack's house, the business-use-of-home percentage would be 1/8 or 12.5%. Jack can then apply this percentage to his eligible expenses to determine the deductible amount.
Applying the 12.5% business-use-of-home percentage to the eligible expenses, Jack can deduct $600 (insurance) + $1400 (utilities) + $2400 (property tax) + $8,900 (mortgage interest) = $13,300 * 12.5% = $1,662.50.
However, since Jack does not claim capital cost allowance, he can deduct a simplified amount of $5 per square foot of the business-use portion of his home, up to a maximum of 300 square feet. In this case, 300 square feet would represent the size of the spare bedroom. Therefore, Jack can deduct $5 * 300 = $1,500 as a business-use-of-home expense.
Overall, Jack can deduct the lower amount between the calculated percentage method ($1,662.50) and the simplified method ($1,500). Thus, Jack can deduct $1,500 as a business-use-of-home expense.
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Related Questions
2. 37 A paused rainbow is a cash-flow stream which pays $1 at time 1 and 2n; $2 at time 2 and 2n – 1;. ;$(n-1) at time n - 1 and n + 2; and $n at time n and n + 1. Find the present value of the paused rainbow. 2. 38 (a) Find the present value of a perpetuity of $1 at time 0, $2 at time 3, $3 at time 6, $4 at time 9, at an effective rate of interest of 3%. (Hint: Use the result in Exercise 2. 25. ] (b) Hence, find the present value of a perpetuity which pays $1 at the end of the 3rd, 4th and 5th year, $2 at the end of the 6th, 7th and 8th year, $3 at the end of the 9th, 10th, 11th year and so on, at an effect rate of interest of 3%. 2. 39 Express (D3), in terms of i and n under simple interest. [Hint: The symbol (D3) is defined similarly as in Exercise 2. 25. ] 2. 40 Eric makes deposits into a retirement fund earning an annual effective rate of 7%. The first deposit of $1,000 is made on his 38th birthday and the last deposit is made on his 64th birthday. Every year his deposit increases by 3%. When he attains age 65, he will withdraw all the money in the re- tirement fund to purchase an annuity-immediate which provides him with monthly payment for 25 years. The nominal rate of interest on the annuity is convertible monthly at 6%. Find the amount of each monthly payment
Answers
The detailed answer of Cash Flow is given in the attachment below:
What is Cash Flow?The flow of money into and out of a business is known as cash flow. Cash spent indicates outflows, while cash received indicates inflows. A financial statement called the cash flow statement details a company's cash sources and uses over time.
A real or virtual movement of money is called a cash flow: A payment, especially from one central bank account to another, is a cash flow in its broadest sense. A cash flow from operations is made up of expenses made in the normal course of business. Payroll, the cost of goods sold, rent, and utility costs are examples of these cash outflows.
No, the two metrics are very different from one another. Profit is the portion of your revenue that remains after costs are deducted, while cash flow is the money that enters and exits your business over a specific time period.
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Tom is the CEO of a jewelry business based in Boston. He needs to send a parcel of 200 diamonds as quickly as possible to a partner in Canada. What mode of transport should he use?
A.
road
B.
sea
C.
air
D.
rail
E.
rail and road
Answers
The accelerator principle states that planned investment spending by firms is: Select one: a. negatively related to the current level of real GDP. b. negatively related to the expected growth of real GDP. c. positively related to the expected growth of real GDP. d. positively related to the current level of real GDP.
Answers
positively related to the expected growth of real GDP.the accelerator principle suggests that firms' planned investment spending is positively related to the expected growth of real GDP.
When firms anticipate higher economic growth, they are more likely to increase their investment in order to meet the expected future demand for goods and services. This positive relationship is based on the assumption that firms adjust their investment levels to match changes in expected demand. Therefore, as the expected growth of real GDP increases, firms tend to invest more to expand their production capacity and capture the anticipated increase in consumer demand.
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Which type of money does the diagram best describe?
? Money
Has value because of its materials
Has been common throughout history
Includes gold and silver coins
A. M1
B. Fiat
C. Representative
D. Commodity
Answers
The type of money described in the question is known as commodity money.
What is commodity money?Money is anything that is generally accepted for the exchange of goods and services and for the repayment of debt. Commodity money is a type of money that has value in itself. Examples of commodity money is gold and silver.
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Answer: commodity
just took the test
Dr. Sams,
I would liek to schedual an apointment for next Wednesday.
Thank you,
Susan
a.
red text
b.
poor grammar
c.
no greeting
d.
misspelled words
Answers
John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make the decision, but you feel like you’d like to ask your boss for her advice. Unfortunately, she is in a business meeting, and the decision needs to be made very soon. You decide to take the initiative and ______.
a.
Interrupt your boss to make the decision
b.
Ask a coworker to make the decision
c.
Wait to make the decision
d.
Make the decision
Answers
Answer:
D. Make the decision
Explanation:
The decision needs to be made as soon as possible. Answers B and C both require extra time, which is not an option here. That leaves A and D as possibilities. Answer A makes the least sense of the 4 options (as it would be extremely unprofessional to interrupt a meeting), leaving D as the only reasonable choice.
Visit a web site for a company that sells products online. Then go to that company's corporate web site. Compare the company's product sales site with its corporate site. Describe at least 3 differences between them. (1-3 sentences. 3. 0 points).
Answers
There are a number of variations between goods or services and business websites. The fact that "items/services push their products as the most prominent thing on the website, whereas the corporate website pushes their values and ethos as the most noticeable thing on their website," is one of the distinctions.
The following other differences have also been noted:The corporate website lacks areas or parts where customers can order or book things, whereas product or service websites do.
The product and service websites lack this feature, however corporate websites have a part or area where a team member's job description is explained.
Additionally, the corporate websites feature the business's ongoing projects, mission, and vision, whereas the websites for the company's products and services.
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According to the liquidity premium theory of the term structure, a flat yield curve indicates that short-term interest rates are expected to.
Answers
According to the liquidity premium theory of the term structure, a flat yield curve indicates that short-term interest rates are expected to remain constant.
What does a flat yield curve mean?A flat yield curve is an indicator that interest rate would be constant. The long term and short term interest rate would be the same. A downward sloping yield curve can also be an indicator that there is an expectation of lower inflation rate in coming years.
If the yield curve is upward sloping, the short term interest rate would be lower than the long term interest rate
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Definition of Diversification-
Answers
Answer:
the action of diversifying something or the fact of becoming more diverse
Explanation:
A retail store with product line ________ means the store carries a large assortment of each item within the product line. Multiple choice question. width breadth depth variety
Answers
A retail store with product line depth means the store carries a large assortment of each item within the product line. Thus, the correct answer to the multiple choice question is depth.
A retail store with a product line depth carries a vast range of products within a particular category or product line. For example, a store specializing in shoes that has a wide range of sizes, colors, styles, and brands of athletic shoes demonstrates a deep product line.
The store aims to meet the diverse needs and preferences of its customers by carrying a large assortment of each item within the product line. The store can use this strategy to differentiate itself from its competitors and attract customers who are looking for an extensive selection of products to choose from.
By providing a deep product line, the store can also create a perception of expertise and trust in the minds of its customers, leading to brand loyalty and repeat business.
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The company's compliance division is making suggestions for delayering and reconfiguring that will help employees know where to go when they have questions and concerns.Leader Reactions to Crises Organizational Structure Slogans and Sayings Measurable and Controllable Activities
Answers
Regarding the company's compliance structure, the comment is made. The formal hierarchy of power, channels of communication, and division of labor that exists within an organization is referred to as its organizational structure.
It outlines the division and coordination of duties as well as the information flow between various organizational levels. The company's compliance division makes proposals for delaying and reconfiguring in the above statement, which implies that the corporation is thinking about changing its organizational structure. These modifications are intended to increase transparency and clarity regarding where employees can turn for assistance with queries or grievances.
Companies can expedite communication and decision-making, define roles and duties, and increase overall efficiency and effectiveness by enhancing organizational structure. The way an organization is set up can significantly affect how well it runs.
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Correct Question:
Explain this Stattement: The company's compliance division is making suggestions for delayering and reconfiguring that will help employees know where to go when they have questions and concerns.Leader Reactions to Crises Organizational Structure Slogans and Sayings Measurable and Controllable Activities.
the definition of states: a global strategy in which a firm allows a foreign company to produce its product in exchange for a fee.
Answers
The given definition describes the concept of "licensing," which is a global strategy where a firm permits a foreign company to manufacture its product in return for a fee.
Licensing is a business arrangement where a company (licensor) grants the rights to another company (licensee) in a foreign market to produce and sell its product or use its intellectual property in exchange for a fee or royalty. This strategy allows the licensor to expand its market reach without establishing its own manufacturing facilities or directly entering the foreign market.
Under a licensing agreement, the licensee gains access to the licensor's product, technology, brand, or intellectual property, enabling them to produce and sell the licensed product in their local market. In return, the licensor receives financial compensation in the form of licensing fees or royalties based on the volume of sales or a predetermined agreement.
Licensing offers several benefits, including market expansion, cost savings, risk mitigation, and revenue generation. However, it also involves certain considerations such as maintaining quality control, protecting intellectual property rights, and managing the relationship between the licensor and licensee.
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evaluate whether locating closer to raw materials is the most important factor when locating a business. if not what other factor/s would be more important
Answers
Answer:
The nature of the major raw material requires to produce the product of the business determines the level of importance attached to locating a business closer to raw materials.
Explanation:
The level of importance attached to locating a business closer to raw materials depends on the nature of the major raw material requires to produce the product of the business.
When the major raw material requires to produce the product of the business is a heavy raw material that cannot be easily transported, locating the business closer to the raw material will be the most important factor.
However, when the major raw material requires to produce the product of the business can be easily be transported, locating the business closer to raw materials will NOT be the most important factor. In this case, some of the other important factors to consider will include proximity to markets; availability of labour; water supply; availability of power, fuel or gas; waste products disposal facility and among others.
what are the three versions of the multidivisional structures
Answers
The three types of multidivisional structures are those that simplify, facilitate, and stimulate.
By more effectively tracking the performance of each business, enabling comparisons between divisions, streamlining the resource allocation process, and encouraging managers of underperforming divisions to look for ways to improve performance, the three versions of the multidivisional structures simplify the control problem. In multidivisional structures, employees are divided into departments based on product categories and/or geographic regions. A multidivisional organisational structure arranges a company's divisions, which are based on locations, products, or services. An alternative would be for a manufacturing company to establish divisions for cable assembly and product engineering as part of a product-based organisational structure. On the other hand, a professional services organisation can be organised around service divisions like the ones for personal and business services.
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17. Lewis signed a contract for the rights to all timber located on Nine Mile Mine. He agreed to pay $70 per thousand board feet ($70/mbf). As he began work, Nine Mile became convinced that Lewis lacked sufficient equipment to do the job well and forbade him to enter the land. Lewis sued. Nine Mile moved for summary judgment. The mine offered proof that the market value of the timber was exactly $70/mbf, and Lewis had no evidence to contradict Nine Mile. The evidence about market value proved decisive. What is the issue
Answers
A project's break-even occupancy level is determined by: _______________
a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.
b. subtracting debt service from the before-tax cash flow, and dividing by net operating income.
c. adding the operating expenses to the debt service, and dividing by the gross potential revenue.
d. subtracting operating expenses from effective gross income, and dividing by the operating expense ratio.
Answers
Answer:
a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.
if you have a net spendable income of 1,450 per month, what is the maximum amount of money you should spend on entertainment each month
Answers
items that would seldom be test marketed include . a. potato chips b. postal system sorting equipment c. cellular telephones d. breakfast cereals
Answers
When it comes to test marketing, companies typically select certain products to undergo a trial period in order to gauge the potential success of the product on the market. While there are a variety of factors that come into play when determining which products are suitable for test marketing. The cost-benefit analysis that companies use when making decisions about product development and marketing.
For example, with potato chips, companies may feel that the product is already well-established and that there is little need to test market new flavours or varieties. This is because consumers are already familiar with the product and have a general idea of what they are looking for. Additionally, potato chips are relatively cheap to produce, so companies may not see the need to invest in test marketing when they can simply release a new flavour and see how it sells.
Similarly, with postal system sorting equipment, companies may feel that the limited audience for this product means that test marketing is unnecessary. This type of equipment is typically sold to businesses or government agencies, and there may not be a large market for it beyond these customers. As such, companies may feel that it's not worth the investment to test market the product when the potential customer base is already known.
With cellular telephones, companies may be hesitant to invest in test marketing due to the high cost of development and production. Cell phones are complex products that require a significant amount of research and development in order to create a successful product. Additionally, there is already a high level of competition in the market, with established brands like Apple and Samsung dominating the industry. As such, companies may feel that it's too risky to invest in test marketing when the potential for success is uncertain.
Finally, with breakfast cereals, companies may feel that the market is already highly competitive and that it's difficult to stand out from the crowd. While there may be room for innovation in terms of flavours or marketing strategies, companies may feel that it's too risky to invest in test marketing when there are already so many established brands on the market. Additionally, cereal is a relatively low-cost product, so companies may not see the need to invest in test marketing when they can simply release a new product and see how it sells.
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Suppose that when a monopolist produces 25 units, its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $9 per unit. Total xed costs are $75. what can we conclude about this monopoly?
Answers
Answer:
the monopolist is maximizing its accounting profits
Explanation:
A monopolist (as well as every other type of business) will maximize its accounting profits when marginal revenue = marginal costs. That doesn't mean that it will actually make a profit, in this case net profit = $0
total revenue = 25 units x $8 = $200total costs = 25 units x $9 = $200 ($125 variable and $75 fixed)net profits = $0But it means that at that point it will minimize its losses.
You are really hungry and have been wanting to eat pizza all day. Instead of ordering a medium, you order a large. However, after about 4 slices, you don’t want anymore. This is an example of which factor?
Responses
diminishing personal value
diminishing personal value
substitutes
substitutes
buying power
buying power
diminishing marginal utility
Answers
The fact that you ordered a large pizza but after 4 slices, don't want anymore is an example of diminishing marginal utility.
What is diminishing marginal utility?Diminishing marginal utility refers to an economic principle that talks about how the utility or satisfaction that a person gets from each additional unit of an item increases at first, and then decreases.
For instance, the person was really hungry and then ordered a large pizza to be satisfied. But as they ate more slices, they were satisfied less and less and eventually ended up wanting no more slices of pizza.
In conclusion, this is diminishing marginal utility.
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an online survey or _____?
Answers
Answer:
Study
Explanation:
Which is not a responsibility of a human resources manager? Choose the answer.
Question 3 options:
revising personnel policies and procedures
revising job descriptions
maintaining company employee contact information
developing the company's strategic plan
Answers
Answer:
maintaining company employee contact information
lollllaoqlqlwlwkwjebsnan
Answers
The Earth has a moment of inertia, I = 8.04×10^37 kg*m^2. The Earth rotates at a moderate angular velocity of 7.2921159 ×10^−5 radians/second.
Using Conservation of Angular Momentum we can find the new rotation of the earth.
L=I*omega= 8.04×10^37 kg*m^2 * 7.2921159 × 10^−5 = 5.86286*10^33.
5.86286*10^33 = (8.04×10^37 + 1.5424*10^22) *omega
-> solve for omega = 7.292115899502489e-05
This is 4.97511e-15 rad/s slower than earth's original rotation. This translates to 6.752*10^-10 seconds = 0.6752 nanoseconds longer per day.
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?
Answers
Assuming the owner has a policy with $60,000 coverage. The amount that the owner collect for his loss is $30,000.
Policy coverageIn order for the total amount of a partial loss to be paid the house must be insured for at least 80 percent of its value on the date in which the loss ocur.
And since house has a policy coverage of the amount of $60,000. Based on this the minimum requirement is 75 percent which mean that the policy will pay only 75 percent of the loss or $30,000.
Inconclusion the amount that the owner collect for his loss is $30,000.
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Vitalink company does marketing research and then plans, creates, and places various forms of paid communications about its clients' products and services. vitalink company is a(n) _____
Answers
Vitalink company does marketing research and then plans, creates, and places various forms of paid communications about its clients' products and services. vita link company is an advertising agency.
Advertising agencies work with businesses to design and execute advertising campaigns and measure their success. You can also oversee promotions, branding, and marketing strategies.
The Big Five Advertising Agencies consist of WPP plc, Omnicom Group, Publicis, Interpublic Group of Companies, and Dentsu. Global advertising spending exceeded $563 billion in 2019. North America is the largest investor in this sector, followed by Asia and Western Europe.
External companies are known as advertising agencies. Examples of international advertising agencies are WPP and Omnicom Group.
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Which of the following is a source of risk for businesses?
O A. Stakeholder interests that affect the community
O B. Profit goals that are not realistic
O C. Government regulations that set minimum wages
D. Dividend analyses that show lost earnings
Answers
Answer:
Giver regulations that set minimum wages
Explanation:
A P E X
suppose savannah's art studio is charging the market price, which is slightly higher than her average total cost. this means that savannah:
Answers
If Savannah's art studio is charging the market price, which is slightly higher than her average total cost, it means that she is earning a profit on her products or services. Option a is Correct.
The market price is the price that consumers are willing to pay for a product or service, while the average total cost (ATC) is the total cost of producing a product or providing a service, including all the costs of labor, materials, and overhead. If the market price is slightly higher than the ATC, it means that Savannah is earning a profit margin above her average total cost. This profit margin allows her to cover her costs and generate revenue to sustain her business.
However, if Savannah continues to charge a price that is significantly higher than her ATC, she may not be able to attract enough customers to sustain her business, as consumers may perceive her products or services as overpriced compared to similar offerings from competitors. Therefore, it's important for Savannah to strike a balance between charging a price that is high enough to cover her costs and attract customers, while also ensuring that her products or services are competitively priced in the market. Option a is Correct.
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Correct Question:
Suppose savannah's art studio is charging the market price, which is slightly higher than her average total cost. this means that savannah :
a. is earning a small economic profit.
b. is incurring a small economic loss.
c. is breaking even.
d. should shut down immediately.
If you have $600 and you find an investment that annually yields 3%, how much interest would you earn in 15 years?
Answers
Answer:
$270.00 in 15 years
Explanation:
3% of $600 = $18.00 annually
$18.00 x 15 years = $270.00 interest earned
Case Study: Full-risk models, not shared savings, let
health systems deliver what patients really need
also add the diagram and quote the references at the
end. thanks
Question 2 (25 Marks) One of the key aspects of the Risk Management Process which the HCPs should be using as an essential tool is risk modeling. It can be argued that for the sustainability of the HC
Answers
The article, "Full-risk models, not shared savings, let health systems deliver what patients really need," focuses on the importance of full-risk models in healthcare delivery as opposed to shared savings models.
The authors argue that full-risk models are more effective in addressing the needs of patients and ensuring the sustainability of healthcare systems.The use of full-risk models allows healthcare providers to take on more accountability for patient outcomes and to make decisions based on what is best for the patient rather than what will save money.
This approach also encourages innovation and flexibility in healthcare delivery.Reference:Case Study: Full-risk models, not shared savings, let health systems deliver what patients really need, by Karen K. Davis, Christopher R. Chen, and Michael J. Dowling, Harvard Business Review, September-October 2019.
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Which is not a limitation of Enterprise Risk Management (ERM)?
A. Errors, mistakes, or faulty judgment.
B. Absolute assurance of achievement of entity objectives.
C. Management override.
D. Control circumvention by collusion.
E. Cost verses benefit.
Answers
Answer:
B. Absolute assurance of achievement of entity objectives.
Explanation:
Enterprise risk management refers to managing risk for an enterprise. It is depends on the plan strategy for a business to identify and analyze the risk, dangers, hazards that could be in terms of physical or figurative also it interfers to the day to day operations and its objectives
Here, the second option represents the advantage of an enterprise risk management
Therefore the same is to be chosen
hence, the correct option is B.