Answer:
Peyton's basis in the stock is $60,000
Explanation:
The transaction is a tax- free exchange which means that the transaction is exempt from any income taxation.
To find out the Peyton's basis in the stock we will Subtract the Fair-market value of the transferred property to the Deferred gain.
= 100,000 – 40,000
= $60,000
Answer:
$3.64 million
The Npv can be turned into cash by borrowing $18.18 million today and paying back in one year time with the $20 million that would be paid
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-10 million
Cash flow in year 1 = $20 million - $5 million = 15 million
I = 10%
NPV = 3.63 million
The Npv can be turned into cash by borrowing $18.18 million today as the present value of 20 million is 18.18 million
20 million / 1.10 = 18.18 million
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Auditory
Explanation:
According to the Visual-Auditory-Kinesthetic (VAK) learning styles model, a person's dominant learning style is determined by three major sensory receivers i.e visual, auditory and kinesthetic.
Auditory learners learn through listening to spoken words of themselves or of others. Visual learners learn through seeing and reading pictures, illustrations, write-ups etc. Kinesthetic learners learn through touching and feeling things.
Based on the above, the financial planning client's learning style is most likely auditory.
Answer:
C) Overapplied overhead
Explanation:
The ending balance of $8,000 represents the overhead overapplied as the credit side is more than the debit side related to production i.e as the credit side is $167,000 and the debit side is $159,000 so the credit side is greater than the $8,000
Therefore the correct option is c.
Hence, the other options are wrong
Answer:
62.5% and 37.5%.
Explanation:
The computation of percentage is shown below:-
Let us assume the X be the weight in Risky Asset
And, 1 - X is the weight in Risk Free asset.
SO,
Particulars Rate Weight Weighted rate
Stock 11.00% X 0.11X
Risk free assets 3% 1 - X 0.03 - 0.03X
So, the equation will be
0.03 + 0.08 X = 0.08
0.08 X = 0.08 - 0.03
0.08 X = 0.05
X = 0.05 ÷ 0.08
= 0.625