Answer:
Net Income is $65,000.
Explanation:
According to given data
Revenue = $120,000
Expenses = $55,000
Net Income = Revenue - Expesnes
Net Income = $120,000 - $55,000
Net Income = $65,000
Net Income is $65,000.
As net income is calculated using Revnue and Expenses, In the presence of this data we will not consider thae value from the balance sheet.
Answer: The correct answer is to safeguard the inventory and reporting the inventory on the financial statements.
Explanation: One of the primary objectives of control over inventory is to safeguard the inventory from damage or theft. The second objective is to report the inventory on the financial statements.
Answer:
a. A 20 year, 10% coupon bond
Explanation:
Reinvestment risk refers to the risk of earning lower rate of return than the return earned on current investments.
For example, a $1000, 6% callable bond is issued. The lender earns 6% i.e $60 per annum. Suppose the market interest rates drop to 4% and the issuer redeems these bonds. Then, the lender has to invest his proceeds at 4% and not unlike 6% in previous case.
This means, his rate of return has reduced on reinvestment. This is reinvestment risk.
Bond term is directly related to reinvestment risk. Higher the term, higher the reinvestment risk.
In the given case, 20 year 10% coupon bond bears the most reinvestment risk since the term is more. Higher the term of the bond, higher the possibility that interest rates would be lower than the interest rate at the time of purchase.
Answer:
$1,000 capital gain, $0 basis in land, $0 basis in partnership interest.
Explanation:
Based on the information given we were that she received the amount of $6,000 when she already had the amount ofb $5,000 as the basis in the partnership interest which means that she will recognize the amount of $1,000 as her CAPITAL GAIN
Secondly her basis in the land will be $0 basis reason been that any basis of property that is been received in a distribution will not be higher than the bais of the partner's in the partnership interest
Lastly her basis in the partnership interest will as well be $0 basis reason been that her own share of the money given to her reduced her basis in the partnerbership
Answer:
E. Customer satisfaction
Explanation:
Customer satisfaction is a benefit and not a cost.
