Ruby operates a hobby supply store. she maintains her books using the cash method. at the end of the year, her accountant computes her accrual basis income that is used on her tax return. for 2019, ruby had cash receipts of $840,000, which included $100,000 collected on accounts receivable from 2018 sales. it also included the proceeds of a $50,000 bank loan. at the end of 2019, she had $175,000 in accounts receivable from customers, all from 2019 sales. ruby paid cash for all of the purchases. the total amount she paid for merchandise in 2019 was $560,000. at the end of 2018, she had merchandise on hand with a cost of $45,000. at the end of 2019, the cost of merchandise on hand was $80,000. ruby's accrual basis gross receipts for 2019 are $. the cost of goods sold for 2019 under the accrual method is $. the gross profit from merchandise sales for 2019 under the accrual basis is $.

2. high-glow currently produces 1,000 bicycles per month. the following per unit data apply for sales to regular customers: direct materials $50 direct manufacturing labor 5 variable manufacturing overhead 14 fixed manufacturing overhead 10 total manufacturing costs $79 the plant is experiencing demand shortage and is considering reducing production to 800 bicycles. what is the per unit cost of producing 800 bicycles? a) $79 per unit b) $81.50 per unit c) $74 per unit d) $69 per unit

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing