Capitalized cost is a cost associated with a vehicle lease.
A capitalized cost is a fee added to the fee basis of a fixed asset on a company's stability sheet. Capitalized costs are incurred while building or purchasing fixed assets. Capitalized expenses are not expensed within the duration they had been incurred but identified over a time period via depreciation or amortization.
price capitalization refers back to the exercise of no longer spotting the value of a fixed asset, tangible or intangible, inside the length, it changed into incurred but instead expensing it over a time period via depreciation or amortization.
Capitalized expenses can include intangible asset prices may be capitalized, like patents, software introductions, and trademarks. similarly, capitalized fees consist of transportation, labor, sales taxes, and substances.
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when shoppers at costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. this sales promotion tactic is known as
When shoppers at Costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. This sales promotion tactic is known as sampling.
What is sampling?Sampling in market research refers to gathering opinions from a select group of people in order to learn more about the entire group. Companies typically determine the requirements and preferences of their target market before introducing products to the market. In order to do this, they may use sampling of the target market's population to better understand these needs before eventually developing a good or service to meet them.Sampling is the process of choosing the group from which you will actually collect data for your study. For instance, you could interview a sample of 100 students if you were examining the viewpoints of students at your university. With the help of sampling, you can test a statistical hypothesis on the features of a population.Therefore, when shoppers at Costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. This sales promotion tactic is known as sampling.
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which of the following statements about workplace values is true? group of answer choices canadian culture views the employee-employer relationship as a family that has shared assumptions. cultures in which people often engage in casual talk during business negotiations view time in a relaxed way. cultures that have high power distance, such as those in latin america, tend to expect workers to make their own decisions. american culture focuses on networking and interpersonal relationships rather than maximizing production or planning. polychronic cultures, such as those in nigeria, believe that if you put hard work before pleasure, success will follow.
Statement (D) "American culture focuses on networking and interpersonal relationships rather than maximizing production or planning" is TRUE about workplace values.
What are workplace values?The guiding ideals that are most significant to you in terms of your working style are your workplace values. These firmly held beliefs serve as a guide for significant choices in life, including job selections, and help you distinguish between the proper and improper ways of functioning.Workplace values are the traits, tenets, and standards that are truly important to you. Knowing your work values can aid in career planning, job options exploration, and career change.American culture prioritizes networking and personal connections over increasing output or planning.Innovation, excellence, and responsibility are a few examples of fundamental values. These ideas are meant to serve as a unifying factor for the community, consumers, and employees of the business.Therefore, statement (D) "American culture focuses on networking and interpersonal relationships rather than maximizing production or planning" is TRUE.
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Correct question:
which of the following statements about workplace values is true? group of answer choices
(A) Canadian culture views the employee-employer relationship as a family that has shared assumptions.
(B) cultures in which people often engage in casual talk during business negotiations and view time in a relaxed way.
(C) cultures that have high power distance, such as those in Latin America, tend to expect workers to make their own decisions.
(D) American culture focuses on networking and interpersonal relationships rather than maximizing production or planning.
(E) polychronic cultures, such as those in Nigeria, believe that if you put hard work before pleasure, success will follow.
if the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would
If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would decrease the firm's profit by $19.
A company that offers professional services is referred to as a firm. This can be a corporation, limited liability company (LLC), or partnership.
When you say someone is firm, you're implying that they act in a way that indicates they won't change their mind or that they are the one in charge. She needed to treat him firmly. The marginal cost, or price of producing more, is the adjustment to the total cost that results from increasing the quantity produced. Marginal cost is the additional cost incurred when producing a second good. Say, for instance, that it costs $100 to produce 100 automobile tires. An additional tire would cost $80 to produce.
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g if the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is:
If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is 0.5.
The extent to which demand reacts to a variation in an economic component is known as the elasticity of demand. The most continued and important economic factor considered while calculating the elasticity of anything is price. The Income bracket and the accessibility/reachability of substitutes are additional factors.
Elasticity scales how demand shifts in response to changing economic variables. If demand for a good or service does not vary as a result of price changes, it is said to have inelastic demand. Luxury products and edible utilities like foods and different kinds of beverages are elastic goods because their demand is influenced by price changes for them.
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a company purchased new equipment for $40,000. the company paid cash for the equipment. other costs associated with the equipment were: transportation costs, $2,200; sales tax paid $3,100; and installation cost, $1,500. the cost recorded for the equipment was:
Equipment Cost refers to the total sum paid by the company to the manufacturer of any item of equipment, including all relevant sales taxes and delivery fees as invoiced by that manufacturer to the company.
How to Calculate Equipment Cost?For a business, the cost of the equipment is simply the price the business paid for it. The cost of the equipment can be calculated using a company's balance sheet, albeit this information is not always accessible.Assets are typically listed on a company's balance sheet at their cost. However, the asset's book value will be the asset's cost less cumulative depreciation. As a result, cost can be determined using the asset's book value and total cumulative depreciation.New Equipment + transportation cost + Sales tax + installation cost =
$40,000 + $2,200 + $3,100 + $1,500 = $46,800
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______ is collected from contributions, assessments, premiums, and payroll taxes.
Insurance trust funds is collected from contributions, assessments, premiums, and payroll taxes.
What is an insurance trust fund?
An insurance trust can be defined as an irrevocable trust which is set up with a life insurance policy as the asset.
It is one of the easiest ways to shelter the insurance proceeds from eventual estate taxes and prevent those proceeds from pushing your spouse's estate value over the estate tax exemption threshold. The best trust is considered as an irrevocable trust offers your assets the most protection from creditors and lawsuits
There are three types of insurance trust.
Revocable trustsIrrevocable trusts Asset protection trustsTo know more about Insurance trust from the given link
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How many credits do you usually need to take in order to be considered full-time?.
A computer-based system for continually gathering internal and external information is called.
A computer-based system for continually gathering internal and external information is called marketing information system (MIS).
A marketing information system, often known as a MIS, is a system for collecting, storing, processing, and disseminating critical marketing data. A marketing information system's input is concentrated on gathering all the necessary internal and external data for interpretation and analysis. A marketing information system's output is the dissemination of a results to all top management and members of the corporate marketing division. The data can then be used by marketers to inform better marketing choices that will support the business to succeed.
With the help of marketing information system (MIS), business organizations are able to gather external as well as internal information and accordingly design their marketing plan.
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forward-thinking organizations are creating the position of __________ to oversee the development and management of innovative social media programs.
Forward-thinking organizations are creating the position of Chief Digital officer to oversee the development and management of innovative social media programs.
A product or a concept becomes modern when it stands proud from the rest and virtually makes the clients' lives simpler. A hit alternate that can convert understanding and thoughts into a benefit – in the shape of recent or stepped-forward merchandise/offerings is capable of being innovative.
Lego has been converting the substances of its well-known bricks to biodegradable oil-based totally plastics. The first electric-powered automobiles added to the automobile marketplace have been also innovative, and new batteries with longer stages that hold popping out also are an instance of innovation.
Creativity, vital wondering, and complicated hassle-solving. All three of those abilities are vital to growing and bringing to existence a new innovation that solves a real problem and provides a significant price.
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All other things held constant, the present value of a given annual annuity increases as the number of periods per year ncreases ed a.True b.False
'All other things held constant, the present value of a given annual annuity increases as the number of periods per year increases
Present value (PV) is the present value of a future amount of money or cash flow stream given a particular rate of return. Future cash flows are discounted by a discount rate, and the higher the discount rate, the lower the present value of future cash flows.
If a person currently has $10,000 and he invests it at an interest rate of 10%, he will use the money for a year and he will have earned $1,000. Instead, if she didn't have access to that money for her one year, she would lose her $1,000 in interest income.
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When is Cyber Monday 2021?
Answer:
Monday
, November 28
Explanation:
How might a start-up company that has been using a paper-based document control approach benefit from switching to a cloud-based plm system?.
A start-up company that has been using a paper-based document control approach can benefit more from switching to a cloud-based PLM system as it offers more efficient development processes.
The PLM system offers an automatic method of services which are more reliable as compared to the paper-based document method.
Product lifecycle management (PLM) helps the various workers in a project to collaborate with each other through technology hence making collaboration and development of the project easier.
The tasks related to a project will become automated due to Product lifecycle management (PLM), hence making the project more efficient overall.
A cloud-based PLM system is cost-effective as one does not need to buy any software or hardware resources for it.
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2008 1 Mar Started business with $1,000 cash.
credit or debit
Answer:
The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
which of the following are not ways that budget deficits can have a negative effect on future economic growth? when they are financed with foreign-held treasury debt. when interest payments are made to foreigners. when the debt is held domestically. when they are financed with an increase in taxes.
The one that are not ways that budget deficits can have a negative effect on future economic growth is option C: when the debt is held domestically.
High and rising deficits and debt have a number of negative effects, including high inflation, rising interest rates, slower economic growth, increased interest payments, reduced fiscal space, increased geopolitical risk, and generational imbalances. Thankfully, none of these effects are inescapable. Therefore, option C is the only one not having any negative effects on economic growth.
When the economy is booming, the opposite occurs. These effects, sometimes referred to as the economy's "automatic stabilisers," take place without any modifications to governmental policy. The deficit will automatically decrease as the economy improves due to rising tax revenues and declining unemployment.
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which of the following items are plant assets? (check all that apply.) multiple select question. land held for expansion building being used for operations equipment being used in operations equipment with no value
The items that are plant assets are c)equipment being used in operations,b) building being used for operations.
In the field of business, plant assets can be described as fixed assets that are used by a company for a long period of time in order to make products that are sold.
The equipment that is used by a business is a fixed asset that will be used for a long time to produce products for selling by a business. Hence, the equipment that is being used for operations is plant assets.
Also, the building that is being used for the operations of a business is a fixed asset that will be used for a long time for producing products in the building. Hence, it is a plant asset.
Although a part of your question is missing, you might be referring to this question:
which of the following items are plant assets? (check all that apply.) multiple select question.
a) land held for expansion building
b)being used for operations
c) equipment being used in operations
d)equipment with no value
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the statistical thinking underlying six sigma is based on which of the following three principles? a. all activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible. b. all work is a process, all processes have variability, and all processes create data that explain variability. c. all work activities can be done accurately most of the time, empowered employees are necessary for effective control, and good statistical data is an empowered employee's best control tool. d. all work is a statistically controllable process, 100 percent control is possible, and every well-controlled process is defect-free. e. most business processes are subject to control, six sigma can totally remove variability in how processes are performed, and most defects can be eliminated.
The statistical thinking underlying Six Sigma is based on the following three principles: All work is a process, all processes have variability, and all processes create data that explains variability.
What is the Six Sigma principle?Six Sigma principle can be described as the set of management techniques that is been used as a tool in the organization which helps to improve business processes by greatly reducing the probability that an error or defect will occur.
Therefore, the six sigma is based on principles such as :All work is a process because no matter the process that's been followed one needs efficiency as well as high productivity.
Therefore, option B is correct.
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Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 2017 $80,800 92,800 117,500 28,400 143,000 270,000 (50,000) $682,500 2016 S 48,400 33,000 102,850 26,000 114,000 242,500 (52,000) $514,750 Assets as Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equit Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $112,000 16,500 110,000 220,000 224,000 67,300 17,000 150,000 175,000 105,450 $514,750 Total $682,500 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: $392,780 Cost of goods sold Operating expenses, excluding $135,460 depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income Additional information: I. New equipment costing $85,000 was purchased for cash during the year. 2. Old equipment having an original cost of $57,500 was sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method.
Answer:
1. New equipment costing $85,000 was purchased for cash during the year.
2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of $40,350 was declared and paid during the year.
Instructions:
Prepare a statement of cash flows using the indirect method.
During the year, a cash dividend of $40,350 was declared and paid. On December 31, 2017, there will be 80,800 in cash.
A cash flow statement contains what exactly?All of the cash inflows business experiences from continuing operations and outside investment sources are detailed in a cash flow statement. The sum of the cash flows from operations, investments, and financing is known as net cash flow and is included in the cash flow statement.
The net cash flow is calculated using the indirect approach, which also adjusts the cash input and outflow to account for noncash expenses like amortization and depreciation. The net cash flow is then added back to the net income.
Cash flows from operating activities:
Net income 158,900
Add: Depreciation 46,500
Add: Loss from selling plant assets 7,500
Less: Increase in accounts receivables 59,800
Less: Increases in inventory 14,650
Less: Increase in prepaid expenses by 2,400
Add: Increase in accounts payable 44,700
Less: Decreases in accrued expenses payable 500
Net cash provided by operating activities (A) 180,250
Cash flows from investing activities:
acquisition of equipment 85,000
Add: Purchase of investments 29,000
Add: Sale of equipment 1,500
Net cash used for investing activities (B) 112,500
Cash flows from financing activities:
Repayment of bonds payable 40,000
Add: Issuance of common stock 45,000
Add: Payment of cash dividends 40,350
Net cash provided by financing activities (C) 35,350
Net increase in cash ((D) = (A) + (B) + (C)) 32,400
Add: Cash balance, December 31, 2016, 48,400
Cash balance, December 31, 2017, 80,800
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What will most likely happen to maggie? check all that apply. She may have to pay thousands of dollars to repair and replace her possessions. She will convince the insurance company that she has flood coverage. Her insurance company will eventually pay the damages. She may have to pay to live somewhere else while repairs are being made. She may have to go into debt.
The things that can most likely happen to Maggie are she may have to pay thousands of dollars to repair and replace her possessions, she may have to pay to live somewhere else while repairs are being made, and she may go into debt. The correct options are (a),(d), and (e).
Possession means the purchase, control, or occupancy of some object, advantage, or characteristic, by a person. Debt is a responsibility that demands the individual body, the debtor, to pay services or different concurred-upon values to another body, the one who receives. Debt is a delayed payment, or order of fees, that changes it from an immediate purchase.
Companies frequently use debt when building their capital structure cause it has sure benefits compared to impartiality funding. In general, utilizing deficit helps keep profits inside a guest and helps secure tax harvests. There are ongoing monetary debts expected managed, still, that can impact your available funds.
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Answer:
B- She may have to pay thousands of dollars to repair and replace her possessions.
D- She may lose her home.
E- She may go into debt.
Explanation:
See picture <3
A company needs construction equipment to complete a project over the next 20 months. The equipment costs $10,000. Instead of purchasing the equipment with a 12% note, the company leases the equipment with payments of $300 due at the end of each month. For what amount would the company record the lease liability at the beginning of the lease?.
The company record the lease liability at the beginning of the lease is $5414. Lease liability = monthly lease payment * Present value annuity.
What is Lease liability?
The responsibility to make lease payments is represented by the lease liability, which is calculated using the present value of upcoming lease payments. We simply discount the liabilities throughout the lease duration using the discount rate once we have obtained our data, which includes the lease term, lease payment, and discount rate.
A lease will be shown as a right-of-use (ROU) asset and lease liability on the balance sheet. The ROU asset is the control of the asset under the lease contract, whereas the lease liability is the payment obligation over the course of the lease contract.
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Break-even analysis examines the relationships between which of the following?
a. Price
b. Profit
c. Costs
Answer: c. Costs
Explanation:
The break-even analysis examines the relationship between costs like fixed costs , variable costs , and total costs .
Given the following objective, raise brand awareness to at least 40 percent among consumers 18 to 49, which critical element of an actionable objective is missing?.
The critical element of an actionable objective that is missing is E. Quantitative benchmark.
How to illustrate the information?One can use quantitative benchmarking to create a quantitative baseline or set of standard metric scores that you can use to re-evaluate your experience at regular intervals or after major updates and changes. These baselines can be set for a single product or for multiple product lines.
The goal lacks a quantitative benchmark, which is a number or percentage that indicates whether or not the goal was met. In this case, the goal should state how brand awareness will be increased to 40% among consumers aged 18 to 49.
Therefore, based on the information illustrated, the correct option is E.
The question is attached below.
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the inflation rate between any two years is calculated as (choose all that apply)
The inflation rate between any two years is calculated as a) the percentage change in the CPI from one year to the next, c) (CPI in year 2 - CPI in year 1) / CPI in year 1 X 100 and d) (CPI in year 2 - CPI in the base year) / CPI in the base year X 100.
The change in the prices of a basket of goods and services that are frequently purchased by particular groups of households is referred to as inflation as measured by the consumer price index (CPI).
With a split for food, energy, and the total excluding food and energy, inflation is calculated as the yearly growth rate and in indexes using 2015 as the base year. The degradation of living standards is quantified by inflation.
A consumer price index is calculated as a set of summary measures of the proportional change in prices from one period to the next for a fixed set of consumer products and services that the reference population purchases, uses, or pays for.
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Correct question:
The inflation rate between any two years is calculated as (choose all that apply)
a) the percentage change in the CPI from one year to the next.
b) (CPI in year 2 - CPI in year 1) / CPI in the base year X 100.
c) (CPI in year 2 - CPI in year 1) / CPI in year 1 X 100.
d) (CPI in year 2 - CPI in the base year) / CPI in the base year X 100.
there are historically three 32-month periods of generally rising prices in the stock market for every one 9-month period of falling prices. this observation leads you to conclude that the stock market exhibits a:
This observation leads you to conclude that the stock market exhibits a: Cyclic Pattern.
"Stocks" generally refers to the ownership certificates of any company. The stock certificate of a company is referred to as a share, however. Those who own stock in a specific company are referred to as shareholders. Common and preferred stocks are two distinct stock types.
The two basic categories of stocks are common stock and preferred stock. Continual Supply Common shares of equity are exactly that—common. Even though preferred stock typically does not have the same voting rights as common stock, it still represents a portion of the ownership of the company. Ownership in a publicly traded company is represented by stocks. A stock purchase makes you a shareholder in the company. By way of illustration, if you purchase 1,000 of a company's 100,000 shares.
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question mode multiple choice question the market where businesses buy labor from households is called the .
The market where businesses buy labor from households is called the Factor Market.
In economics, a factor market is a market in which factors of production are bought and sold. Factor markets allocate production factors such as land, labor and capital, and distribute income to owners of production resources such as wages and rent. Buy, rent, or rent the things you need to produce goods and services. These needs are factors of production such as raw materials, land, labor and capital.
Simply put, it is the market for factors of production such as land, labor and goods. Examples of factor markets are job fairs, owners selling their land to shopping malls, and banks lending money to entrepreneurs.
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herring signed the memorandum, but he did not in fact alter his will to include grundge. the estate refused to pay, and grundge sued. was there consideration? please prepare a brief legal memorandum that discusses and resolves this issue.
The principles for preparing memorandums are similar to the principles involved in preparing: email messages.
What are memorandums and email messages?
Memorandums and emails messages are both useful in passing across information from one person to another usually within an organization.
In this case, it should be noted that The principles for preparing memorandums are similar to the principles involved in preparing: a.email messages. A debit memorandum is an information recording adjustment for three particular cases: reducing the account balance of a bank customer, under filling goods or services or a small credit balance internally offset to a customer account. A debit receipt is provided to an account holder in financial institutions stating that now the balance of the account was reduced due to a cause apart from cash withdrawal or cash search. Because of bank fees or bundled check expenses, debit memos may arise. Usually, the memos and their monthly bank statements are forwarded to bank clients.
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You expect to live for 30 years after retiring. If your retirement account earns 3.5% and you want it to provide your annual living expenses of $100,000, how much will you have to have in that account when you retire? (Round your answer to the nearest dollar)
The amount that should be in the retirement account when you retire is $1,839,204.54.
What should be in the retirement account?In order to determine the amount of money that you are to have in your retirement account when you retire, the present value of the 30-year annuity has to be determined. Present value is the sum of discounted cash flows.
The formula that can be used to determine present value is:
P = PMT * [1 – [ (1 / 1+r)^n] / r]
Where:
P = Present valuePMT = value of each payment = 100,000 r = Discount or interest rate = 3.5% n = number of years = 30$100,000 x [1 - (1 / 1.035)^30] / 0.035] = $1,839,204.54
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Write 3-4 paragraphs telling me your thoughts about supply chain issues and inflation
Demand-pull, supply-pull, and supply-pull inflation are the three different types of inflation. Cost-push inflation is a phenomenon. internal inflation
The cost of living in a nation or the overall rise in prices are two examples of broad measures that are frequently used to define inflation. It is the rate of price growth over a predetermined time frame. The cost of living in a nation or the overall rise in prices are two examples of broad measures that are frequently used to define inflation.
Monetarists believe that too many dollars chasing too few goods is what causes inflation. In other words, there is now an excessive amount of money.
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identify a difference between central tendency error and leniency error.
a. Central tendency error is a performance rating error, whereas leniency error is a selection error
b. Central tendency error occurs when assessors rate all workers as performing below expectations, whereas leniency error occurs when assessors rate all workers as performing above expectations
c. Central tendency error is also known as horns error, whereas leniency error is also known as halo error
d. Central tendency error occurs when assessors rate all workers as average, whereas leniency error occurs when assessors rate all workers as performing particularly well
Identify a difference between central tendency error and leniency error a. Central tendency error is a performance rating error, whereas leniency error is a selection error.
Measures of valuable tendency are numbers that tend to cluster across the “center” of a fixed value. Three such center numbers are the mean, the median, and the mode. For instance, suppose your profits for the beyond week had been the values proven in desk 1.
Central tendency is very beneficial in psychology. If we could recognize what is normal or 'average' for a fixed of records. It also condenses the statistics set all the way down to one representative value, that's beneficial whilst you are running with massive amounts of records.
The measures of crucial tendency permit researchers to decide the typical numerical factor in a set of information. The information points of any sample are allotted on a selection from the lowest value to the highest fee. Measures of central tendency inform researchers where the middle value lies within the distribution of information.
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why set up a recurring journal entry? answer: a. you don't expect the customer to pay their debt. b. you want to transfer funds from your checking to your savings account every month. c. you will make multiple payments on a fixed schedule. d. you need to replenish the petty cash fund.
b. you want to transfer funds from your checking to your savings account every month.
Why do we employ repeating entries?When you need to make the same entries every month or on particular dates, you utilize recurring entries. You can set up these entries in the system and then run a job to process them rather than having to manually create them each month.
What is a repeated journal entry?Particular expenses or transactions that are repeated every accounting period are the subject of recurring journal entries. They are frequently carried out to document things like allocations, depreciation, amortization, and accruals.
Recurring Journal Entries are used to enter journal entries that are a fixed amount that repeat each period, such as depreciation and amortization.
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taxpayer a is a limited partner in two partnerships. partnership a produces passive income (to a) in the amount of $5,000. partnership b has a passive loss of $4,000 (to a). how does taxpayer a treat the passive income and loss on his tax return?
The taxpayer a treat the passive income and loss on his tax return is $1000.Thus, a financial loss from an investment in a firm or transaction in which the investor is not a significant participant is referred to as a passive loss.
A passive loss on tax returns is what?Thus, a financial loss from an investment in a firm or transaction in which the investor is not a significant participant is referred to as a passive loss. Investments in rental properties, joint ventures, or other ventures in which an investor is not significantly involved might result in passive losses.To calculate the deductible losses and to calculate the income and losses from passive activities, use Form 8582, Passive Activity Loss Limitations. To calculate the allowed passive activity credit and to calculate the credits from passive activities, use Form 8582-CR, Passive Activity Credit Limitations.According to the regulations for passive activity losses, you must engage in a trade or business "regularly, continuously, and substantially" in order to claim a loss. $5000 - $4000 = $1000.The taxpayer a treat the passive income and loss on his tax return is $1000.To learn more about Passive loss refer to:
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