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GenaCL600 [577]
3 years ago
11

. Dallas Wildcat Drilling Co. sells an oil-drilling rig for $3,000,000. The drilling rig was purchased in 2013 for $2,000,000. D

epreciation deductions of $1,200,000 have been taken up to the time of sale. What amount and character of gain will Dallas report from the sale of this asset?
Business
1 answer:
olga2289 [7]3 years ago
5 0

Answer:

$2,200,000 gain

Explanation:

When the amount received from the disposal of an asset is lower than the carrying or net book value (NBV) of the asset, the company makes a loss on disposal otherwise, the company makes a gain on disposal.

The carrying amount of the asset is the difference between the asset's cost and accumulated depreciation as at the date of disposal.

Asset NBV = $2,000,000 - $1,200,000

= $800,000

Gain/(loss) on disposal = $3,000,000 - $800,000

= $2,200,000

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Ralph Young was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii t
Y_Kistochka [10]

Answer:

The correct answer is option (a) The court probably found that the state law was unconstitutional under the supremacy cause.

Explanation:

Solution

From the given questions it states that, What would be the court's most likely response to Ralph's lawsuit.

The court's decision response would be that, I that when the situation arises or occurs in that case, where there is a conflict which arises between federal and state law then in that case federal law must be applied.

7 0
3 years ago
You have developed the following data on three stocks: Stock A has a standard deviation of .15 and a Beta of .79. Stock B has a
blondinia [14]

Answer:

As a risk minimizer : Stock A  has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B  has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.

The answer is A and B respectively

Explanation:

The standalone risk or standard deviation of the stocks is alleviated for a well diversified investor  . So, in that case, the relevant risk would be the market risk or the beta.

When you see in isolation, relevant risk would be the standard deviation.

Therefore, as a risk minimizer : Stock A  has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B  has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.

6 0
3 years ago
Investors require an after-tax rate of return of 10% on their stock investments. Assume that the tax rate on dividends is 30% wh
IgorC [24]

Answer:

a. $28.5

b. 12.28%

c.  $29.18

d. 13.09%

Explanation:

a. let current price = p

p*1.10 = 2(1-0.3)+30

= 1.4+30/1.10

= 31.4/1.10

= 28.5

the current price of the stock is approximately 28.5 dollars

b. (30+2 /28.5)-1

= 32/28.5 - 1

= 0.1228

= 12.28%

expected before tax rate is 12.28%

c. 3(1-0.3)+30 / 1.10

= 3*0.7+30/1.10

= $29.18

d. before tax rate of return

= (3$ + 30-29.18)/29.18

= 0.1309

= 13.09%

it is now higher here given that given that a greater dividend causes more tax burden.

6 0
3 years ago
An employee at falcon security is studying an analysis of data regarding the occurrence of problems and failures with its drones
Rama09 [41]
An employee at Falcon Security is studying an analyst of data regarding the occurrence of problems and failures with its drones camera. Based on the analysis, the employee may schedule maintenance on the equipment Falcon Security is using the analysis to decision making.
6 0
3 years ago
Following are transactions for Vitalo Company. Nov. 1 Accepted a $12,000, 180-day, 8% note from Kelly White in granting a time e
Fantom [35]

Answer:

Interest amounts at December 31st = $80

Interest amounts at April 30th = $160.

Explanation:

Total interest amount = $6,000 * 8% = $480

Since this is a time extension, we have 360 days (i.e. 180 * 2 = 360)

Interest amounts at December 31st (Nov. 1 - Dec. 31) = (60/360) * $480 = $80

Interest amounts at April 30th (Jan.1 - Apr. 30) = (120/360) * $480 = $160.

6 0
3 years ago
Read 2 more answers
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