Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 points Save Answer Before last year, Elle (Luke's wife) taught music and eamed $30400 She also samed 59.600 by renting out their basement as

image text in transcribed
4 points Save Answer Before last year, Elle (Luke's wife) taught music and eamed $30400 She also samed 59.600 by renting out their basement as a studio apartment Elie saves every month. At the end of a typical year she would have saved a total of 10% from her wages and the income earned from the basement for the entire year, and earned a total of 0.5% interest for the entire year) from this At the beginning of last year, Elle stopped teaching music. She also stopped renting out their basement, and began to use as the office for her new web design business. The balance on her savings account was $150,000, and the took $5.000 from this account to buy a new laptop computer and a new printer (which also functions as a scanner and a faci Sho so borrowed $12.000 from the local bank to purchase additional machinery and equipment (a graphics tablet, desktop computer, studio camera and an external hard drive) Herfoan payment is $250 per month. During last year, the paid $3,000 for the lease of a web server and $2.400 for high speed internet service. She also spent $3,000 purchasing miscellaneous supplies for her business At the end of fast year, Elie received a total revenue from website designing of $48.250 and earned interest on her savings account balance for the entire year). After the first year of operation, Luke (who has his own successful business) beleves that Elle made the right decision. However. Elle feels a bit skaple and beleves that she should have remained as a music teacher. Before getting into the web design business, she would have saved some of her total earnings, but now we the web design business, the is not sang wy money to er saving account. Also, doing a bit of research, she realizes that the market value at the end of last year) for the laptop computer and the printera 54000 (Question of What is w's metot costs from her new web design business lawyear (if there is no implot come, then enterrero)? /eport your answer at ? cucinal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Count Down The Past, Present And Uncertain Future Of The Big Four Accounting Firms

Authors: Jim Peterson

2nd Edition

1787147010, 9781787147010

More Books

Students also viewed these Accounting questions