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1 year ago

A _____ is applied to reduce estate tax when a large amount of real estate is for sale in one area.

1 answer:

8 0

A marketability discount is applied to reduce estate tax when a large amount of real estate is for sale in one area.

When evaluating private enterprises, the discount for lack of marketability (DLOM) is used. It has to do with the business not having a publicly listed stock on a stock market.

Since shares of publicly listed corporations may be purchased or sold in a controlled marketplace, these companies are seen to have a "market." Private businesses lack a centralised market and are thought to have smaller markets. In order to represent the lack of a market, private firms should, in principle, be valued lower than public companies, all else being equal.

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Co. is considering acquiring a manufacturing plant. The purchase price is $ 1 comma 100 comma 000. The owners believe the plant

balu736 [363]

Answer:

Payback period = 3 years 6 months

Plant shall be accepted.

Explanation:

Payback period refers to the term of period in which the cost of the asset will be recovered through the revenues generated via that asset.

If payback period is less than the expected life of asset the project or asset shall be accepted and invested in.

In the given case,

Purchase price of asset = $1,100,000

Cash generated each year = $314,000

Thus, payback period = $\frac{1,100,000}{314,000} = 3.503$

that means 3 years and 12 $\times$ 0.503 = 6.036 months

This is not the discounted payback period.

Here discount rate is not provided, also the life of plant is expected to be 6 years since payback is less that is 3 years and 6 months the purchase of plant offer shall be taken.

Correct answer

Payback period = 3 years 6 months

Plant shall be accepted.

4 0

3 years ago

4. Explain the importance of the balanced development of human resource for

Vinvika [58]

Answer:

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4 0

3 years ago

Transactions Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equ

IrinaK [193]

Answer:

Transactions Innovative Consulting Co.

Journal Entries:

Date Account Titles and Explanation Debit Credit

Oct. 1: 51 Rent Expense $2,500

11 Cash $2,500

Oct. 4: 52 Advertising Expense $1,000

11 Cash $1,000

Oct. 5: 13 Supplies $1,800

11 Cash $1,800

Oct. 6: 14 Office Equipment $11,500

21 Accounts payable $11,500

Oct. 12: 11 Cash $7,500

12 Accounts Receivable $7,500

Oct. 20: 21 Accounts payable $2,700

11 Cash $2,700

Oct. 27: 54 Miscellaneous Expense $700

11 Cash $700

Oct. 30: 53 Utilities Expense $475

11 Cash $475

Oct. 31: 12 Accounts Receivable $42,400

41 Fees Earned $42,400

Oct. 31: 53 Utilities Expense $900

11 Cash $900

Oct. 31: 33 Dividends $1,500

11 Cash $1,500

Explanation:

a) Data and Calculations:

Oct. 1: 51 Rent Expense $2,500 11 Cash $2,500

Oct. 4: 52 Advertising Expense $1,000 11 Cash $1,000

Oct. 5: 13 Supplies $1,800 11 Cash $1,800

Oct. 6: 14 Office Equipment $11,500 21 Accounts payable $11,500

Oct. 12: 11 Cash $7,500 12 Accounts Receivable $7,500

Oct. 20: 21 Accounts payable $2,700 11 Cash $2,700

Oct. 27: 54 Miscellaneous Expense $700 11 Cash $700

Oct. 30: 53 Utilities Expense $475 11 Cash $475

Oct. 31: 12 Accounts Receivable $42,400 41 Fees Earned $42,400

Oct. 31: 53 Utilities Expense $900 11 Cash $900

Oct. 31: 33 Dividends $1,500 11 Cash $1,500

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2 years ago

Tax preparers who obtain written conflict of interest waivers from clients are required to retain the document for at least:____

sertanlavr [38]

Answer:

The correct answer is: 36 months or 3 years.

Explanation:

The Department of Treasury Circular 230 establishes the regulations for all those professionals who represent individuals before the Internal Revenue Service (IRS) such as lawyers and accountants. In section 10.29 there is a retention requirement in front of conflict of interest that implies waivers or consents to be retained by the tax professional for 3 years post-representation and made available to the IRS if requested.

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3 years ago

If a process only has random variations, then 95.5% of the time the sample averages will fall within approximately

Elena L [17]

The answer is 3 standard deviation of the population mean

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2 years ago