Accounting Methods (LO 7.2) Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sale of products $66,000 Cash paid for expenses (except rent and interest) 40,000 Rent paid on a leased building for 18 months beginning December 1 45,000 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda's income from her business for this calendar year. If an amount is zero, enter "0". Sales income $ 66,000Expenses: Other than rent and interest $ 40,000Rent $ Interest $ Net income $

$23,500

Explanation:

The computation of the net income is shown below:

Sales income $66,000

Less:

Cash paid other than rent and interest -$40,000

Rent paid ($45,000 × 1 months ÷ 18 months) -$2,500

Prepaid interest $0

Net income   $23,500

As the yolanda is a cash tax basis taxpayer so only that revenues and expenses are considered which are earned and incurred for the same particular period

answer; trojan horse;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.