Question
The answer is below, I only want to know the explanation to get that answer. Thank you . Milleris the sole shareholder of Miller Enterprises
The answer is below, I only want to know the explanation to get that answer. Thank you.
Milleris the sole shareholder of Miller Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Aidan provides you with the Income Statement for the corporation for December 31 of the current year. Calculate the net business income for Miller Enterprises Ltd. for the current year.
THE ANSWER
Can someone give me a detail explanation to get this answer, please? Thank you
Notes to income statement 1. Miller Enterprises Ltd. is a small business corporation operated by the sole shareholder, Aidan Miller 2. Accounting and legal includes legal fees related to Aidan's dispute in regards to a personal car accident in the amount of $2,040. 3. Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $4,270. 4. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office \& General Equipment): $45,550 Class 10 (Automotive Equipment): \$24,200. 5. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. 6. Insurance includes life insurance premiums for Aidan Miller in the amount of $3,800. This life insurance policy is required as collateral for the business bank loan. 7. Office expenses include the $5,600 purchase of laptop computers on January 15 , . 8. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,880. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. Calculate the net business income for Miller Enterprises Ltd. for the current ye nearest whole dollar.) Net income Legal fees Disallowed meals and entertainment expenses Depreciation expense Club dues/membership fees Less: CCA Laptop computers Net business incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started