Answer and Explanation:
The tax consequences for the following events -
a. The organization should record the amount of $10,000 in the year 2018 as they followed the cash basis and the cheque should be equal to the cash also troy could not able to record the bonus till it is actually collected
b. As per the accrual basis, the income should be recorded when they are earned not when they are received so the corporation should record the income in the year 2018 as the agent performed the service
c. Since the restrictions that are imposed on cheque for payment purpose should be treated as the substantial and the cheque should not be equivalent to the cash because the customer told that check should be held till Jan 2019 so the income should not be recorded in 2018
Answer:
Explanation:
In a scenario such as this one, the broker-dealer is not required to disclose whether any guarantee of growth was made by the representative to induce the giving of the testimonial. This is backed by the FINRA rule on testimonials used in communications which states the following:
“Retail communications or correspondence providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:
- The fact that the testimonial may not be representative of the experience of other customers.
- The fact that the testimonial is no guarantee of future performance or success.
- If more than $100 in value is paid for the testimonial, the fact that it is a paid testimonial.”
Answer:
Contingency viewpoint or approach of management
Explanation:
According to the contingency viewpoint, there is no particular standard of management. Rather, the type of management style adopted including decisions made depends on the type of situation that the organization is facing at the particular time. Nikita in this scenario is using the contingency approach since she is making decisions based on the upcoming convention.
Answer:
Clarissa needs to fund the growing perpetuity by $166666.67
Explanation:
A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:
Pv = C/(i-g)
where Pv is the present value of the perpetuity which will be the initial investment.
C is the periodic payments that will be received in future in this case $5000
i is the interest rate given for the perpetuity which is 8%
g is the growth rate per fixed period which is 5%
thereafter we substitute on the above mentioned formula:
Pv= $5000/(8%-5%) then compute
Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.
I think the answer is true because it is the total value of produced and services provide in a given year
