4) Mitsven Surfboard Inc. is a company in San Diego that shapes and sells surfboards. In 2018 their accounts were as follows: total revenues $150,000; cost of inputs $75,000; wages paid to employees $35,000; profits to owner $25,000, taxes paid by company $5,000. The building and the equipment used for production are property of the company, and no new building or new equipment was purchased in 2018. The value added produced by Mitsven Surfboard Inc. in 2018 was A. $150,000 B. $75,000 C. $65,000 D. $10,000 Answer:
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- Devlin is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 Devlin opened a landscaping business. Question Facts At the end of the first year of operation, he submitted the information on the right to his accountant. 1. Devlin stopped renting out his cottage for $4,000 a year and used it as his business premises. The accountant recorded the depreciation on Devlin's cottage during 2020 as $2,000. 2. The market value of the cottage increased from $70,000 to S71,000. 3. He spent $10,000 on materials, phone, utilities, etc. According to the accountant, what profit did Devlin make? 4. He leased machines for $14,000 a year. 5. He paid $5,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. According to the accountant, Devlin's profit is O A. $165,800 O B. $104,550 OC. $30,000 7. He borrowed $40,000 at 8 percent a year from the bank. 8. He sold $200,000 worth of landscaping. 9. Normal profit is $30,000 a year. O D. $28,000f the following financial information related to XYZ Company. Total Revenues last year $970, depreciation expenses $50, costs of goods sold $450, and interest expenses $55. At the end of the year, current assets were $121 and current liabilities were $107. The company has an average tax rate of 35%. Calculate the net income for XYZ Company by setting up an income statement.You are in the train station waiting for your train to arrive. You see a vending machine from where youcan buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZVendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet ofchips. However, when you open the packet of chips, you find bits of plastic inside and you don’t wantto eat the chips. You want your money back. With reference to the essential elements for the formation of a contract, explain:a) Did you enter into a contract in this scenario?words)b) If your answer is yes, with whom did you enter a contract?
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