Answer:
b. $120,800.00
Explanation:
Cost of the land $ 600,000/-
Associated expenses:
Razing down the shed: $ 5000
income from scrap: $ 1000
Total expenses $ 4000
The total cost of land =600,000+4000= $ 604,000
Tax allocation: land and building $ 500,000
land allocation will be: 100,000/500,000 x$ 604,000
=0.2x604,000
=$120,800.00
You can write a cover letter argument in a bullet point list. A paragraph is an easy way to summarize your argument. Using bullet points is a good way to focus your arguments and have strong facts.
Market research.
The firm often goes into uncharted Territories for themselves and takes heavy risks in places unknown to them.
For example, McDonald’s Setting up operations in India made its menu suit the Indian taste pallet and was able to carve out a market shape.
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Answer:
A. Unrealized Holding Loss - Trading 3,400
Fair Value Adjustment - Trading 3,400
Explanation:
Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:
Dr Unrealized loss on trading security 3,400
Cr Debt investments 3,400
This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.
Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08
