Answer:
True
Explanation:
Data are raw information that have not gone through any processing but giving a description of a thing. They are in their basic digital format. It requires interpretation for data to be translated to information.
Answer:
Explanation:
Sale Value 1500000
less:Adjusted basis (1000000-89765) 910235
a)Gain recognized 589765
b) in case of sale of real property,cooperates are subject to section 291 to recapture.According to section 291,cooperates taxpayers to recaptures 20% of the lessor of the gain recognized or accumulated depreciation taken.
The recaptured gain is taxed as ordinary gain.
The remaining gain is taxed as section 1231 gain.
Section 1231 Gain (589765-17953) 571812
Section 1250 recapture due to section 291 (89765×20%) 17953
Answer:
land 112,000 debit
building 192,000 debit
equipment 16,000 debit
Cash 320,000 credit
Explanation:
We will add each fair value and calculate the weight of each concept:
land 147,000 --> 147,000/420,000 = 35%
building 252,000 --> 252,000/420,000 = 60%
equipment 21,000 --> 21,000 / 420,000 = 5%
total 420,000
Now we assign this weight ot the lump used to acquire the assets:
land: 320,000 x 35% = 112,000
building 320,000 x 60% = 192,000
equipment: 320,000 x 55% = 16,000
Answer: we will first add the options.
A. Maximize the market value of the equity.
B. Maximize net income given the current resources of the firm.
C. Minimize the tax impact on the proprietor.
D. Decrease long-term debt to reduce the risk to the owner.
E. Minimize the reliance on fixed costs.
The correct option is A. Maximize the market value of the equity.
Explanation: A sole proprietorship is generally owned by an individual. Therefore there is a usually a limitation to how much funds that can be invested in the business.
What this means is that this form of business is very simple and restrictive with regards to equity financing. In other words, equity financing is usually limited to the amount of funds that the sole proprietor is willing to invest in the business.
This is where good financial management comes in, this is to ensure that the invested equity bears fruit, and achieves high market value in order to yield revenue.
Lack of proper management and the invested equity will be squandered.
The correct answer is letter D: Diversified mutual fund - Treasury bond - stock.
These orders of investments ensure a systematic low to high risk possibilities. A company needs to look into possible options where it can invest its assets in the form of a diversified mutual fund. Upon doing this, securing a bond from the state is wise investment in case loans are too high or the company comes to debts. The last risk would be engaging in stocks or the deliberation of this to several company owners.
