Terry and jim are both involved in operating illegal businesses. terry operates a gambling business and jim operates a drug running business. both businesses have gross revenues of $500,000. the businesses incur the following expenses.
terry

jim

employee salaries

$200,000

$200,000

bribes to police

25,000

25,000

rent and utilities

50,000

50,000

cost of goods sold

–0–

125,000

which of the following statements is correct and why (1-3 sentence justification)?

a.

neither terry nor jim can deduct any of the above items in calculating the business profit.

b.

terry should report profit from his business of $250,000.

c.

jim should report profit from his business of $500,000.

d.

jim should report profit from his business of $250,000.

e.

none of the above.

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.

What has caroline's payment history been like? support your answer with two examples