Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Based on the fact that London Corp, issued 1,000 shares at $20 per share, the effects of this transaction are:
- Increase in cash
- Increase in common stock
<h3>What happens when stock is issued?</h3>
When stock is issued newly, the stock will be sold for cash which in this case is;
= 1,000 x 20
= $20,000
This means that cash in the company has increased.
Something else that will increase is the common stock. This is the account where the value of the issued stock will go to.
Find out more on stock issuance at brainly.com/question/25562729
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Answer:
A. $6000 ordinary income on sale of a creative asset by the creator of the asset.
B. $4000 ordinary income on the sale of inventory.
C. $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Explanation:
The taxpayer sold a painting to Reller Gallery for $6000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
A. $6000 amount realized minus zero basis is equal to $6000 ordinary income on sale of a creative asset by the creator of the asset.
Reller Gallery sold the painting purchased by from Kara to a regular customer, Lollard Inc. for $10000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
B. $10000 amount realized minus $6000 cost basis is equal to $4000 ordinary income on the sale of inventory.
Lollard Inc., the tax payer, was the regular customer that purchased the painting from the Reller Gallery. Lollard showed the painting in the lobby of its corporate headquarters until it sold "Shenandoah Skies" painting to a collector from Dallas. Where the collector paid $45,000 for the painting. So, the tax payer amount and the character of tax payer gain or loss is as follows:
C. $45000 amount realized minus $10000 cost basis is equal to $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Answer:
a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.
Answer: I choose to defend it
Explanation:
The formula for the breakeven point is;
= Fixed expenses/ Contribution margin
If the fixed expenses were to double without the contribution margin changing, the breakeven point in units would have to double as well.
For instance, assume Fixed expenses are $400,000 and the Contribution margin is $4,000. The breakeven point would be;
= 400,000/4,000
= 100 units
Assume fixed expenses double to $800,000 and contribution margin remains unchanged at $4,000. New breakeven point will be;
= 800,000/4,000
= 200 units
<em>Statement is proven that should the fixed expenses double, the breakeven point would double as well. </em>
