Earning when open his own accounting firm

Reference no: EM13258140

Sam quit his job as an accountant withWe Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,000. Same arned an:

(a) Accounting profit of $40,000.

(b) Accounting profit of $40,000 and an entrepreneurial profit of$40,000.

(d) Entrepreneurial profit of $80,000.

(e) Both A & D are correct.

Reference no: EM13258140

Questions Cloud

Find the payback for investment : George Williams buys a machine for his business. The machine costs $150,000. George estimates that the machinecan produce $40,000 cash inflow per year for the next fiveyears. George's cost of capital is 10 percent. What is the payback for this inv..

Nutrition involves studying factors that influence eating : Nutrition is an ancient science that dates back to the 14th century. Nutrition involves studying the factors that influence eating patterns.

What is the amount of unused credit carried forward : What amounts of the current general business credit and carryovers are utilized against the 2008 income tax liability? What is the amount of unused credit carried forward to 2009?

Calculate the angular velocity of the turntable : Suppose a 65 kg person stands at the edge of a 6.5 m diameter merry-go-round turntable that is mounted on frictionless bearings and has a moment of inertia of 1850 kg m2. Calculate the angular velocity of the turntable

Earning when open his own accounting firm : Sam quit his job as an accountant withWe Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,00..

Compute the revised annual depreciation : Compute the revised annual depreciation on each asset in 2007. Prepare the entry to record depreciation on the building in2007.

What are the major considerations and factors : What are the major considerations and factors that would be important in your decision? What technical factors would in?uence your decision?

Compute allowable general business credit for the year : His net regular tax liability beforethe general business credit is $95,000, and his tentative minimumtax is $82,000. Compute Earl's allowable general businesscredit for the year.

Compute the ph of a buffer solution that contains benzoic : Calculate the pH of a buffer solution that contains 0.25 M benzoic acid (C6H5CO2H) and 0.15 M sodium benzoate (C6H5COONa). [Ka = 6.5 ? 10-5 for benzoic acid]

User Account

All Pages