Answer:
taxable amount = $10,000
Explanation:
given data
2 year ago fair market value = $30,000
fair market value = $40,000
sold the stock = $50,000
solution
we get here taxable amount when ESOP sold
so taxable amount = Selling price - fair market value on distribution date ...........1
put here value
taxable amount = $50000 - $40000
taxable amount = $10,000 long term capital gain
Answer:
The correct option is C,import quotas.
Explanation:
Import quota is an approach to prevent home industries from high foreign competition by placing a ceiling on the quantity of locally manufactured goods that can be imported.
By import quotas,the businesses are provided a level playing ground to thrive as they able to sell their products at reasonable prices and not chased out of business by foreign manufacturers that produce in large quantity at reduced cost in order to sell at a very competitive price.
Answer:
I got a joke for you :)
Why do we tell actors to “break a leg?”
Because every play has a cast.
Answer:
It is $30,000(C)
Explanation:
Depreciable cost = $90,000
Using straight-line method,
Annual depreciation = $90,000/3
= $30,000.
Hence, depreciation expense at the final year of service is $30,000
We cannot make use of entire cost of equipment of $120,000 because it seemed the company wanted to sell its scrap value for $30,000. Hence, this has been used to reduced it cost to $90,000 which is a depreciable cost .
Answer:
$34.35
The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Explanation:
Computation for the share price to expect after the announcement
Using this formula
Ke = [ D1 / P0 ] +g
Where,
D1 =$4.01
P0 = $50.07
g =3.4%
Let plug in the formula
Ke = [ D1 / P0 ] +g
Ke= [ $4.01 / $50.07] + 0.034
Ke= 0.0800+ 0.034
Ke= 0.1140
Second step is to find the Price after Expansion using this formula
P0 = D1 / [ Ke - g ]
Where,
D1=$2.57
Ke=0.1140
g=4.7%
Let plug in the formula
P0= $ 2.57 / [ 0.1140 - 0.047 ]
P0=$2.57/0.067
P0=$ 34.35
Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Therefore the share price that you would expect after the announcement will be $34.35
