Answer:
D- charitable activity such as an exhibit or parade sponsored by a business
Explanation:
charity commissions a public relations agency to create an advertising campaign to raise money to find a cure for a disease.
Answer:
Depreciation for year 3 = $115518
BV = $57798
Explanation:
The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.
In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:
33.33% for the first year
44.45% 2nd year
14.81% 3rd year
7.41% 4th year
We have been asked to determine 3rd years' depreciation and book value, determined as follows:
Depreciation year 1: $780000 33.33% = $259974
Depreciation year 2: $780000 44.45% = $346710
Depreciation year 3: $780000 14.81% = $115518
So the depreciation for year 3 = $115518
The book value is calculated as follows:
<em>Book value = cost - accumulated depreciation</em>
BV = $780000 - $722202
BV = $57798
False it is not a true statement.
Answer:
$72,000
Explanation:
To calculate investment interest expense dedcution, we need to know the total investment income & total investment interest expenses
Then there're 2 scenarios as followings:
- If the investment interest expenses are less than the net investment income, the entire investment interest expense is deductible.
- If the investment interest expenses are more than the net investment income, we can deduct the expenses up to the net investment income amount. The rest of the expenses are carried forward to next year.
In this example, Ramon's investment income is $72,000 ($34,500 of interest and a $37,500 net capital gain on the sale of securities); is lower than his interest expenses of $83,100.
So Ramon is entiled to deduct $72,000 all the entire investment interest expense in current year
Answer:
The yield to call is 2.24%.
Explanation:
To calculate the yield to call, you can use the following formula:
YTC = (C + (CP - P) / t) / ((CP + P) / 2)
YTC= Yield to call
C= Annual Coupon: 0
CP= Call price of the bond: $509
P= Price of the bond: $455
t= time remaining until call date: 5
YTC= (0+(509-455)/5)/((509+455)/2)
YTC=(54/5)/(964/2)
YTC= 10.8/482
YTC= 0.0224= 2.24%
