<span>By renting a home instead of purchasing one, you are paying someone else's mortgage every month and getting nothing in return. While you are gaining a home to live in for the short term, in the long term you will gain nothing. When you purchase a home you will have a home that you own and that you cannot be evicted from as long as you pay your mortgage.</span>
Answer:
capital gain tax liability
Explanation:
Capital gain tax is defined as the type of tax that is paid when the owner of an investment or asset makes a profit from its sale.
For example when the assets are sold for more than the book value but less than the original purchase price, there is a profit made that is called capital gain.
The tax applied to this capital gain is called capital gain tax liability.
Answer:
The net income will decrease and also the total assets will also decrease
Explanation:
Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.
As the asset value is down the entry is asset (credit) and loss on asset (debit)
This will effect the net income as it will come down and total assets value also come down
Answer:
$90,500
Explanation:
The computation of initial cash outlay is shown below:-
initial cash outlay = New machine cost + Increase in working capital - After tax salvage value
= $145,000 + $12,000 - (($75,000 - ($75,000 - $50,000) × 0.34
= $145,000 + $12,000 - $66,500
= $90,500
Therefore for computing the initial cash outlay we simply applied the above formula.
The expected completion time of a project is 40 weeks and the variance of its critical path activities is 9.Project completion time is 42.0325 weeks.
Variance of its critical path activity 9 weeks.
Therefore, Standard deviation of its critical path activity = Square root ( variance) = Square root (9) = 3
Project completion time with 5% certainty means probability of project completion - 0./5 Corresponding z value for probability of 0.75 = NORMSINV ( 0.75) = 0.6745
Therefore, project completion time with 75% certainty = Expected completion time of the project .
Value x Standard deviation of critical path activity = 40 weeks * 0.6745 x 3 weeks = 40-2.0235 = 42.0325 weeks
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