Which of the following is an example of an enterprising career?

A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position w

posledela

Answer:

2,000

Explanation:

To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.

3 0

3 years ago

FitForLife Gym, a large U.S. based fitness center, receives royalty payments from WeWelness, a small Canadian company, for using

Andre45 [30]

Answer:

<em>Licensing </em>

Explanation:

Licensing <em>is a business agreement whereby one company gives authorization to another company to produce its product for a defined fee.</em>

Licensing allows you to immediately tap current manufacturing, marketing and distribution systems which may have been built by other companies for decades.

8 0

3 years ago

On March 1, 2018, Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral

N76 [4]

Answer:

B) $20,697.

Explanation:

For computing the accretion expense, first we have to determine the present value which is shown below:

Present value would be

= Annual cash flows × PVIF factor for five years at 10%

where,

Annual cash flows would be

= Probability × cash outflows + Probability × cash outflows + Probability × cash outflows

= 25% × $300,000 + 50% × $400,000 + 25% × $500,000

= $75,000 + $200,000 + $125,000

= $400,000

And, the PVIF would be 0.62092. Refer to the PVIF table

So, the present value would be

= $400,000 × 0.62092

= $248,368

Now the accretion expense would be

= $248,368 × 10% × 10 months ÷ 12 months

= $20,697

The 10 months are computed from March 1 to December 31 and we assume the books are closed on December 31

4 0

2 years ago

Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer

Oduvanchick [21]

Answer:

d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.

Explanation:

A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.

The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.

Present value of a growing perpetuity is given by

= $\frac{Cash\ Flow(1\ +\ g)}{r\ -\ g}$

wherein cash flows represent cash flows receivable growing at g% rate till forever

r = required rate of return or cost of capital

g= growth rate of cash flows

Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,

= $\frac{Cash\ Flows}{Required\ rate\ of\ return}$

3 0

3 years ago

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a

ziro4ka [17]

Answer:

Schell Company

Overhead assigned: Standard Deluxe

a. Based on Labor hours $16,280 $9,460

b. Based on Machine hours $10,663 $15,076

Explanation:

a) Data and Calculations:

Total overhead = $25,740

Total Standard Deluxe Overhead Rate

Labor hours 1,170 740 430 $22 ($25,740/1,170)

Machine hours 7,000 2,900 4,100 $3.677 ($25,740/7,000)

Overhead assigned: Standard Deluxe

a. Based on Labor hours $16,280 $9,460

($22 * 740) ($22 * 430)

b. Based on Machine hours $10,663 $15,076

($3.677 * 2,900) ($3.677 * 4,100)

4 0

2 years ago