Answer:
The sell will generate a loss of $6,000.
Explanation:
Please find the below for detailed calculations and explanations:
- The equipment's net value at the time of disposal is equal to: Book value of the equipment - The accumulated depreciation of the equipment = 60,000 - 28,000 = $32,000;
- The gain/(loss) on the disposal of equipment is equal to: Sell price of the equipment - The equipment's net value at the time of disposal = 26,000 - 32,000 = $(6,000)
Thus, Tulip Corporation's disposal of the equipment at Dec 31st 2019 makes a loss of $6,000.
In the accounting cycle, the last step is to prepare a post-closing trial balance.
Answer:
qualified acquisition debt = $750,000
qualified home equity debt = $0
Explanation:
Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.
Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.
Global Trade
This is the exchange of goods and services across international borders - international/global trade typically represents a large portion of a country's GDP.
Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
