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asambeis [7]
3 years ago
8

On March 4, Year 1, Evan Co. purchased 1,000 shares of LVC common stock at $80 per share. OnSeptember 26, Year 1, Evan received

1,000 stock rights to purchase an additional 1,000 shares at $90 pershare. The stock rights had an expiration date of February 1, Year 2. On September 30, Year 1, LVC'scommon stock had a market value, ex-rights, of $95 per share and the stock rights had a market value of $5each. What amount should Evan report on its September 30, Year 1, balance sheet for investment in stockrights?a. $4,000b. $5,000c. $10,000d. $15,0005000/(5k+95k) x 80,000=4000
Business
1 answer:
12345 [234]3 years ago
8 0

Answer:

b. $5,000

Explanation:

<u>September 26th</u>

1,000 x 5 = 5,000 stock rights Investment

It receive 1,000 right at $5 dollars each the total is 5,000

This rights were detachable from the stocks, so they have a diferent account, they are independent from the common shares purchased on March 4th

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The correct answer is capital gain.
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A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position w
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2,000

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To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.

3 0
3 years ago
A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a
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Answer and Explanation:

The computation is shown below

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= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)

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b) Average number of bags on hand is

= EOQ ÷ 2

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c) Orders per year is

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3 0
2 years ago
What is a good reason to contribute to a 401(k) retirement account?
kykrilka [37]

Answer:

The money in the 401(k) account is not taxed until withdrawn.

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A 401 (k) can be defined as a type of compensation (savings) plan that is being sponsored by a business firm or company (employer) to avail its employees the opportunity to contribute into. As a company-sponsored and defined-contribution retirement savings plan, it offers tax advantages to the employees because it reduces their income tax for the particular year while taxing their withdrawals.

A good reason to contribute to a 401 (k) retirement account is that, the money in the 401 (k) account is not taxed until withdrawn. Thus, the money contributed by an employee to a 401 (k) will maintain its tax-deferred status until  he or she withdraws it.

For example, a 401 (k) would be the best retirement savings option for a 50-year old medical doctor whose employer offers a 5% contribution match.

4 0
3 years ago
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Tangible assets are very important to businesses  as they

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Tangible assets are first recorded in the balance sheet as costs to acquire them for use.

See more here: brainly.com/question/23469284

7 0
2 years ago
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