ksawyer745
23.03.2020 •
Business
Ray owns a business with two separate departments. Department A produces $100,000 of income and Department B incurs a $60,000 loss. Ray participates for 550 hours in Department A and 100 hours in Department B. He has full-time employees in both departments. Which of the following statements is correct?
a.
If Ray elects to treat both departments as a single activity, he can offset the $60,000 loss against the $100,000 income.
b.
If Ray elects to treat the two departments as separate activities, he can offset the $60,000 loss against the $100,000 income.
c.
If Ray elects to treat both departments as a single activity, he cannot offset the $60,000 loss against the $100,000 income.
d.
None of the above.
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Ответ:
A) If Ray elects to treat both departments as a single activity, he can offset the $60,000 loss against the $100,000 income.
Explanation:
Ray probably decided to separate both departments in order to have a more precise record of each department's performance, but he can decide to treat them as a single unit and combine both departments' revenues and costs. By doing that, the income generated by department A would offset the losses from department B.
Ответ:
C.
Explanation:
Its right on edu 2020