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never [62]
3 years ago
8

Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill thro

ugh providing high-quality services to its customers. Thus, no basis for the goodwill appeared on Detroit's balance sheet. The suit was settled and Detroit received $1,500,000 for the damages to its goodwill.a. The $1,500,000 is not taxable because it represents a recovery of capital.b. The $1,500,000 is taxable because Detroit has no basis in the goodwill.c. The $1,500,000 is not taxable because Detroit did nothing to earn the money.d. The $1,500,000 is not taxable because Detroit settled the case.e. None of these.
Business
1 answer:
Grace [21]3 years ago
8 0

Answer:

d. The $1,500,000 is not taxable because Detroit settled the case

Explanation:

The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.

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Ralph works for a manufacturing company in Ohio. Recently, he called in a department manager to assist in the purchase of some h
MAXImum [283]

Answer:

The correct answer is letter "A": Modified rebuy.

Explanation:

A modified rebuy is a purchase usually made within a supply chain where a supplier has bought some goods initially but for the next purchase, the supplier requests changes in the purchase -<em>whereas price, product specifications or terms</em>- to better match the supplier's demands.

8 0
3 years ago
Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX
Nonamiya [84]

Answer:

Explanation:

Put Delta = call delta - 1 = 0.582 - 1 = -0.418

No of Options = (-11.2 million / (-0.418 × 1402)) × 1.32 = 25,227 options

No of Contracts = 25,227 / 100 = 252 contracts

6 0
3 years ago
Individual visits to college campuses usually provide opportunities for all the following except
Mnenie [13.5K]
Is this multiple choice...if so can you edit your question and put the answer options
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3 years ago
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A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a
lutik1710 [3]

Answer:

ROA = 6.6%

ROE 14.52%

Explanation:

profit margin = net income / sale = 12%

assets turn over = sales / assets = 0.55

equity mutiplier = assets / equity = 2.2

ROE = return on equity = net income / equity

ROA = return on equity = net income / assets

we use the fraction properties to get ROE and ROA

\frac{income}{sales} \times \frac{sales}{Assets} =\frac{income}{Assets} \\ 0.12 \times 0.55 = 0.066\\

ROA = 6.6%

We apply the same property to get ROE

\frac{income}{assets} \times \frac{assets}{equity} =\frac{income}{equity} \\ 0.066 \times 2.2 = 0.14252\\

ROE = 14.52%

6 0
3 years ago
Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2012, the f
mojhsa [17]

Answer:

$285,000

Explanation:

Please see attachment

5 0
2 years ago
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