Answer:
$5,000
Explanation:
Taxpayers can claim deduction on start up cost incurred by them to start an organization. Investigation cost is one such start up cost that can be claimed as deduction. In the first year lesser of following two conditions is claimed as deduction
1. $5,000
2. Original cost incurred.
In this case, investigation cost incurred by Wanda is $13,600 which is more than $5,000, she can claim deduction of $5,000 in the first year or current year. Rest of the amount is spread across 180 months starting from the month when operations begin.
Answer:
The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.
Explanation:
Answer:
A Banker's Analysis of an Automotive Company for Loan
Most important consideration in determining grant of loan:
c. The company has a large amount of interest payments related to other outstanding loans.
Explanation:
The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged. To grant a bank loan will have added leverage risk.
In analyzing the request for a loan, a bank should consider the borrowing company's credit history. With so much in interest payments, the company has already borrowed heavily. The banker should consider the application of the past debts. Were they used in investments or for working capital purposes or to repay liabilities and shareholders.
The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above. In reviewing the cash flow history, the projections of the company should be tested for sustainability. "Has the company been meeting its past projections?" is a relevant question to understand.#
Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged. Are there unencumbered assets that can serve as collateral in case of default?
Answer:
The question is not comprehensive.
Explanation:
Send the image of the question.
I would say $7.00 per hour lol
