In determining whether an activity should be classified as a hobby, the tax law provides a rebuttable presumption with regard to the profits or losses of an activity. Which of the following statements describes the profit/loss test which must be satisfied in order to meet the presumption that the activity is not a hobby?
a. The activity shows a profit for 3 of the 5 previous years.
b. The activity shows a loss for 3 of the 5 previous years.
c. The activity shows a profit for 3 of the 7 previous years.
d. The activity shows a loss for 3 of the 7 previous years.
e. None of the above.
a
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A minimum cash balance required by a bank is called
A) cash in bank B) cash equivalent C) compensating balance D) EFT
The _________________________ enables you to save pictures, logos, and other objects for future use
Fill in the blank(s) with correct word
Mulcahey Automobiles Company fabricates automobiles
Each vehicle includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 800 units per month Variable cost per unit $7 per unit Fixed costs $12,000 per month An Indonesian factory has offered to supply Mulcahey with ready-made units for a cost of $15 per wiring harness. Assume that Mulcahey's fixed costs could be reduced by $4,000 if it outsources and that Mulcahey will not be able to use the excess capacity in any profitable manner. If Mulcahey decides to outsource, monthly operating income will ________. A) increase by $12,000 B) decrease by $12,000 C) increase by $5,600 D) decrease by $2,400