Answer:
correct option is A. $500
Explanation:
given data
tax basis = $400
fair market value = $500
fair market value = $350
liability = $150
solution
we get here amount realized by Roberta in the exchange that is express as
= fair market value of the stock receive + from the liability ...................1
amount realized = $350 + $150
amount realized = $500
so correct option is A. $500
Answer:
$5,346.98
Explanation:
Initial cash flow = 76,000
Discount rate = 5%
Suppose the C.F. in the 7th year is x which will flow till perpetuity
Present value of annual cash flow till perpetuity = Annual cash flow / Discount rate
PV at the 7th year = x/0.05
Discount factor = (1 + r)^n
Discount rate = 5%
Years D. factor Cash flows
0 0 76,000
1 0.952381 -
2 0.907029 -
3 0.863838 -
4 0.822702 -
5 0.783526 -
6 0.746215 -
7 0.710681 x/0.05
So, 76000 = 0.710681 *(x/0.05)
76000 / 0.710681 = x / 0.05
x = 76000 / 0.710681 * 0.05
x = 5346.98408990813
x = 5346.98
Hence, if the interest rate is 5%, $5346.98 will be received annually from the 7th year
Purchases = Sales units + Closing inventory - Beginning Inventory
= 7,400 + (2,400 * 120%) - 2,400
= 7,800 units
