Answer:
The following statement is not true: <u>Buyers generally prefer to buy stock because they can take a tax basis in the underlying assets of the
</u>
<u>company acquired equal to the assets' fair market value.</u>
Explanation:
Acquisition of a company is like buying and selling of a product. You can't sell unless you have a buyer and vice versa. Acquisition can be defined as the process in which a company buys most or all of the shares of the other company with the motive to gain control. In the process of acquisition, the sellers are motivated to sell in tax deferred reorganization in order to avoid higher tax rates on gain from sale. Also, they sell stocks with the motive to have capital gain on sale taxed at preferential rates. The buyers, on the other hand, prefer to buy stock so that they can have a tax basis in the assets acquired which is equal to assets' fair market value.
Answer:
Explanation:
The journal entries are shown below:
On May 1, 2017:
No entry as on this date the contract is entered
On May 15, 2017:
Cash A/c Dr $990
To Unearned Revenue A/c $990
(Being advance cash is recorded)
On May 31, 2017:
Unearned Revenue A/c Dr $990
To Sales revenue A/c $990
(Being the revenue is recognized)
On May 31, 2017:
Cost of Good sold A/c Dr $648
To Inventory A/c $648
(Being cost of goods sold is recorded)
Answer:
sole proprietorship
Explanation:
sole proprietorship is a type of business which is owned and managed by one person and there is no legal difference between owner and business entity itself.
Since in this case business is under the name of Jim, it is sole proprietorship under the law
Answer: level of national income expands by $100 million
Explanation: The level of National income expands by $100 million. National income which can also be termed GDP(gross domestic product) is the measure of measure of economic production in a country over a specific time.
Increase in GDP is caused by a whole number of factors some of which includes;
*Increase in productivity
*Increase in investment
*Government spending etc.
All the listed above are examples of what the Government has done with the acquired $100 million in tax.
<u>Solution and Explanation:</u>
Answer 1 “Develop a scope statement.”
<u>Explanation</u>: A scope statement will define the outline of the project deliverables, identify the project constraints, assumptions, and success factors. It will clearly define the boundaries of the project
Answer 2 “What do my readers need to know about this topic?”
<u>Explanation</u>: You need to share the information which is relevant for the reader and you need to identify with all the audience requirements.
Answer 3 “It will help you identify issues to be investigated and possible solutions.”
<u>Explanation</u>: "Breaking a major issue into subproblems is a powerful tool for solving problems by breaking them into smaller and more easily solved pieces."