Section 1239 recharacterizes gain on the sale of depreciable property to related person as ordinary income.

Momentum Rollerblades has three product lines: D, E, and F. The following information is available:

Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

D E F

Sales revenue $90,000 $40,000 $30,000

Variable costs ($40,000) ($10,000) ($10,000)

Contribution margin $50,000 $30,000 $20,000

Fixed costs ($10,000) ($5,000) ($25,000)

Operating income (loss) $40,000 $25,000 ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0

3 years ago

Pharoah, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 11.0 percent (semiannual payments). Mana

Delvig [45]

Answer:

Pharaoh will have to pay $1,084.47 for every outstanding bond that it retires.

Explanation:

if the market rate is 9.5%, then the price of outstanding bonds is:

PV of face value = $1,000 / (1 + 4.75%)¹⁴ = $522.21

PV of coupon payments = $55 x 10.22283 (PV annuity factor, 4.5%, 14 periods) = $562.26

market price = $1,084.47

3 0

2 years ago

Unearned revenue, which represents the company's obligation to honor gift cards previously issued to customers, totaled $6,800 a

Dimas [21]

The correct answer is that there were $51,700 work of gift cards redeemed during the year.

In order to determine the correct answer you need to start with the total balance of the unearned revenue account, which is $6,800. To the starting balance you need to add the amount of gift cards purchased throughout the year, which is $55,000. This total is $61,800. The last step is to subtract the ending balance of the unearned revenue from the total ($61,800 - 10,100), which equals $51,700. $51,700 is the amount of gift cards redeemed during the year.

8 0

2 years ago

What does the communication technique "slow down and be patient" mean

vladimir2022 [97]

Answer:

Slow your speech so the person has time to think about each word you say.

Explanation:

These are the options for the question

Avoid looking at your watch when giving care. Slow your speech so the person has time to think about each word you say. Slow your body movements and wait as long as it takes for the person with dementia to respond.

Communication technique are ways of passing information from one person to another, the communication technique "slow down and be patient" symbolized that when you are making a speech, you need to Slow your speech so the person has time to think about each word you say, and a he/she will be able to give the necessary response or act accordingly to the speech.

7 0

3 years ago

On an application, what is a positive way to present an honest picture of yourself?

JulijaS [17]

C. say that you resigned from a job

7 0

3 years ago

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