Riva borrows $10,000 that she intends to use for purchasing supplies for her business. She temporarily deposits the funds in her personal checking account. Prior to the deposit, the checking account held $40,000 of personal funds. Riva books a vacation for $6,000 and writes a check to the travel agency from her personal account. Later in the month, the business supplies bill arrives and Riva writes a check for $10,000 from the personal account. With respect to the interest expense on the $10,000 loan,
A. 20 percent will be treated as trade or business expense.
B. 60 percent will be treated as personal interest expense and 40 percent as trade or business expense.
C. it will all be treated as trade or business expense.
D. it will all be treated as personal expense.
Answer: B
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Pagoli Corporation acquires 30% of the outstanding voting common shares of the Inform Corporation for $600,000 . Pagoli Corporation acquires the investment in Inform Corporation by buying previously issued shares of Inform Corporation from other investors. Between the time of the acquisition and the end of Pagoli Corporation's next accounting period, Inform Corporation reports earnings of
$80,000; and pays a dividend of $30,000 to holders of its common stock. Inform Corporation reports earnings of $100,000 and pays dividends of $40,000 during the subsequent accounting period. Pagoli Corporation's Investment in Stock of Inform Corporation account now has a balance of: a. $609,000 b. $621,000 c. $633,000 d. $642,000 e. $657,000
The culture convergence argument, when taken to the organizational level, centers on convergence toward common organizational practices in different countries because of ______.
A. postmaterialism B. technological determinism C. equilibrium D. interaction
A hotel relying on another firm to provide housekeeping services is likely utilizing a?
a. Delivered service b. Contract service c. Secondary service d. Composite service
The two constructs that form a firm's organizational architecture are:
a. business architecture and economic architecture. b. economic architecture and financial architecture. c. business architecture and financial architecture. d. organizational hierarchy and financial structure.