Joe operates a business that locates and purchases specialized assets for clients, among other activities. joe uses the accrual method of accounting but he doesn’t keep any significant inventories of the specialized assets that he sells. joe reported the following financial information for his business activities during year 0.
determine the effect of each of the following transactions on the taxable business income. (select "no effect" from the dropdown if no change in the taxable business income.)
a. joe has signed a contract to sell gadgets to the city. the contract provides that sales of gadgets are dependent upon a test sample of gadgets operating successfully. in december, joe delivers $13,950 worth of gadgets to the city that will be tested in march. joe purchased the gadgets especially for this contract and paid $9,750.
no effect? amount of deduction? amount of income ?

In return for their with optimizing his painting project, the castle servant informed poly and digit that he saw someone dressed as the king leaving behind a trail of crumbs as he walked into the jester's room late last night. poly and digit have finally found the crisp-collecting culprit — it turns out the jester's shoe size and hair color match the clues that were found! in gratitude, poly and digit agree to the servant with his current task of replacing all of the tables and chairs in the castle. his goal is to determine which furniture company should produce the new furniture. he receives information from a company that customizes elegant furniture, and he wants to analyze the company's production process in order to calculate some problems about cost and availability. read the following scenario, and assist poly and digit as they the servant with his calculations. the fit for a king furniture company requires 2020 hours of labor to produce a standard table, and a chair requires 1212 hours of labor. the labor available is 565565 hours per week. the company can produce at most 3535 chairs per week.

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?