Answer:
$1,306,986
Explanation:
Calculation to determine What is the levered value of the equity
First step is to calculate the VL
VL = {[$338,000 × (1 - .34)] / .142} + (.34 × $400,000)
VL= $1,706,986
Now let calculate the levered value of the equity (VE)
VE = $1,706,986 - $400,000
VE = $1,306,986
Therefore the levered value of the equity is $1,306,986
Answer and Explanation:
The tax consequences for the following events -
a. The organization should record the amount of $10,000 in the year 2018 as they followed the cash basis and the cheque should be equal to the cash also troy could not able to record the bonus till it is actually collected
b. As per the accrual basis, the income should be recorded when they are earned not when they are received so the corporation should record the income in the year 2018 as the agent performed the service
c. Since the restrictions that are imposed on cheque for payment purpose should be treated as the substantial and the cheque should not be equivalent to the cash because the customer told that check should be held till Jan 2019 so the income should not be recorded in 2018
Answer:
The correct answer is A
Explanation:
A substantial understatement may occur when tax return is understated by an amount greater than 10% of the tax required to be shown on the tax return.
Example: If a tax payer that is suppose to report a $6000 tax due and choose to report a $2000 instead, to know if a penalty will be charged or not it has to be greater than 10% of the amount which is suppose to be reported (i.e $6000 x 10% = 600) . therefore in the case shown above the penalty will be applied
Answer:
Equilibrium price will DECREASE and equilibrium quantity will INCREASE
Explanation:
