Answer:
The company records the investment by the entry:
(D) debit Cash and credit Owner's Equity
Explanation:
Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.
In the case, the company that he invested received cash from Mr. Decker.
The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:
Debit Cash $20,000
Credit Owner's Equity $20,000
Answer:
The answer is: A) Under our current tax laws, when investors pay taxes on their dividend income, they are being subjected to a form of double taxation.
Explanation:
A general complain by investors is that many times they suffer from double taxation.
If a corporation pays out dividends, it means that it has already paid its corporate income tax. Dividend payments are based on net profit (after taxes are paid).
Once an investor gets his dividends, they generally are included in their gross income. Some qualified dividends are taxed at lower rates. But whatever the rate used, they are being taxed again.
This happens since corporations exist as separate entities from their stockholders, so the corporation and the stockholders are taxed separately.
Answer:
A. 1 week
Explanation:
This is true due to the fact that, Cassandra knew it would take about 1 week to establish the price point in the new product which she is planning to launch.
For the extra week it would have taken to get the paper could not hold again due to the fact that, it was already established that, it would take same day to get same paper rather than waiting for the paper to get to the strategy group in one week.
Answer:
$5,000
Explanation:
The computation of total amount of excess fair over book value amortization expense adjustments to be recognized by red is shown below:-
Excess of fair value over book value = Land fair value - Land book value
= $52,000 -$42,000
= -$10,000
Here land is not amortized
Excess of fair value over book value = Building fair value - Building book value
= $390,000 - $200,000
= $190,000
Excess fair value over book value amortization expense adjustments to be recognized by red = Excess of fair value over book value of building ÷ Number of Years
= $190,000 ÷ 10
= $19,000
Excess of fair value over book value = Equipment fair value - Equipment book value
= $280,000 - $350,000
= ($70,000)
Excess fair value over book value amortization expense adjustments to be recognized by red for equipment = Excess of fair value over book value of equipment ÷ Number of Years
= ($70,000) ÷ 5
= ($14,000)
Total amount of excess fair over book value amortization expense adjustments to be recognized by red
= $19,000 - $14,000
= $5,000
Answer:
The correct answer is A. true.
Explanation:
The cost of capital is a little less unique than the cost of debt. Equity is any financing raised through the sale of shares. Different people have different ways of measuring equity.
Some people prefer to simply use the CAPM or some other form of APT, estimating the cost of capital as an amount equivalent to the risk premium on the returns paid by the company to its investors. In this way, the returns generated in excess of the risk-free rate are considered the cost of equity.
This calculation is easy to use, but also takes into account the fluctuations in the value of the shares in the secondary market, which really has no cost to the company. Some people argue their benefits.
