Answer:
100,000 building will be the amount subject to depreciation
Explanation:
The land doesn't depreciate.
The land is the real state property, it is not depleted and neither suffers a loss of value through time.
The real state taxes are tax expenses for the period.
The depreciable basis will be the bulding which is affected for the past of time.
Answer:
markets can produce inefficient outcomes.
Explanation:
Asymmetric information is when one party to a transaction has more information than the other party. It could be the buyer or seller that has more information
For example, if a person wants to purchase health insurance, he might not disclose the full information about his health status to the insurer. This might lead to underestimation of costs.
Also, a seller might not reveal to the buyer than the item about to be purchased is faulty.
Asymmetric information leads to inefficient outcome inn the market
Answer: marketing tactics
Explanation:
Answer:
the Annual inventory cost is $800.
Explanation:
The computation of the total annual inventory cost is given below:
Demand, D = 4000
Order cost, S = $ 20
Holding cost, H = $ 4
So,
EOQ = sqrt(2 ×D × S ÷ H)
= sqrt(2 × 4000 × 20 ÷ 4)
= 200
Now
Annual inventory cost = Annual setup cost + Annual holding cost
= (D ÷ Q × S) + (Q ÷ 2 × H)
= (4000 ÷ 200 × 20) + (200 ÷ 2 × 4)
= 400 + 400
= $800
hence, the Annual inventory cost is $800.
Answer:
the amount of the annual interest tax shield = $7437.5
Explanation:
First we need to ckeck the vaelus given on the problem.
$340,000 bond issue outstanding
rate of 6.25%
sell at 101.2% of face value
tax rate is 35 percent
pay interest semiannually
so the amount of the annual interest tax shield will be given by:
Coupon amount paid in a year = $340000 x 6.25 / 100 = $21250
amount of the annual interest tax shield = $21250 x 35 / 100 = $7437.5
therefore we have that the amount of the annual interest tax shield is $7437.5