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mamaluj [8]
3 years ago
14

When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is

Business
2 answers:
photoshop1234 [79]3 years ago
6 0
 ist subtracted from investment i think 
Ierofanga [76]3 years ago
4 0

Answer:

Added to net income ( B )

Explanation:

The preparation of the statement of cash flow can be done by two ways which are direct and indirect methods. in the direct methods the items on the income statement is converted on the basis of cash.

while in the indirect method of preparing statement of cash flow it starts with the registration of the accurred net income and adjusts the overall net income for changes that occur in assets and liabilities originally registered in the income statement. and also changes that occur in the income statement that involves items that might not affect the cash balance. this is done instead of changing the individual items in the net income as with the direct method.

hence the difference in the change observed based on the increase in  liabilities is added to the net income based on the definition of the indirect method.

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Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started
bonufazy [111]

Answer:

Option (b) is correct.

Explanation:

Sale of share = NQOs received × No. of shares × Selling price per share

                      = 10 × 8 × $22

                      = $1,760

Gain realised:

= Sale of share - Basis

= $1,760 - [NQOs received × No. of shares × Selling price per share at $15]

= $1,760 - [10 × 8 × $15]

= $1,760 - $1,200

= $560

Tax paid = Gain realised × preferential rate

               = $560 × 15%

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6 0
3 years ago
Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of
Maru [420]

Answer:

1. 80,000

2. $40 per barrel

Explanation:

1. As we can see from the table provided The equilibrium quantity in this market is 80,000 barrels of heating oil per day,  as quantity demanded match quantity supplied

2. As we can see from the table provided The equilibrium price is $40 per barrel as in this cost there is an intersection of quantity demanded and quantity supplied. In other words the equilibrium price and quantity could be find out when the quantity demanded equal to quantity supplied

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The laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax reven
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3 years ago
When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Os
lawyer [7]

Answer:Amount of Nova and Oscar's gain=$492,937.50

Explanation:

a)According to  Land recorded for   § 704(b) book capital account purposes, Land is  recorded at fair market value. With this, the Padgett properties should record the land at $358,500

b)From the question, it is given that the  basis of land is  $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.

c)Amount of Nova and Oscar's gain.

Fair market value of Land         $358,500

Basis of land                                  $89,625  

total                                              $ 448,125

but Gain =  Selling price of land - Fair value of Land  x interest in partnership profits and capital  

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Total gain                   $448,125 + $44,812.50 =$492,937.50

4 0
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