Business, 03.03.2020 22:34 aseel667789

Ebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a long-term contract. The gross contract price was $2,300,000. Jebali finished construction in 2016 at a cost of $2,100,000. However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $80,000. In 2017, the dispute is settled and Jebali fixed the doorway at a cost of $65,000.

A) How much must Jebali include in gross income? What amount of deductions is Jebali allowed for 2016?
B) In 2017, how much must Jebali include in gross income? What amount of expenses can Jebali deduct in that year?

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Answer from: Karate5650

Explanation:

2016 2017

Contract price = 2300000 2300000

Cost to date = (2100000) (2160000)

Further estimated Cost = (80000) 0

Profit = 120000 140000

Stage of completion = 2100/2180 = 96.33% 100%

As at Profit and loss

Revenue 2300*96.33 = 2215596.33 2300000

Profit 120*96.33 = -115596.3303 -140000

Cost of Sales = 2100000 2160000

For the period profit and loss

Revenue = 2215596 84404

Cost of sales = (2100000) 60000

Profit = 115596 24404

Answer from: Quest

It depends on what the venn diagram is over

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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