Question

CALCULATOR PRINTER VERSION BACK NEXT Exercise 154 (Part Level Submission) Gabbard and Fink CPA firm lease tax software from BGG Tax Software Company to prepare federal and state income tax returns. The lease agreement calls for a base charge of $5,000 per year plus $100 per year for each state for which returns are prepared. In addition, Gabbard and Fink are charged 2 1 for federal and $1 for state) for each tax return prepared. All of their dients have federal and state retums prepared, with 60 percent in Aranas and 40 percent in Odhoma. Your answer is incorrect. Try again. What is the firm's total annual cost for the software a total 2.500 returns are prepare Click if you would like to show Work for this question Show Work

Answer 1

Answer to first question in the list: 2,500 $2 $5,000 (2500 tax returns x $2] Number of tax returns prepared for the year Federal and State tax charged per tax return Variable tax cost for the year Number of states for which tax returs prepared Variable charge per state per year Variable charge for states for the year Fixed charge for the year Firm's total annual cost for the software would be 2 $100 $200 [2 states x $100] $5,000 (Given] $10,200