Answer: The correct answer is "b. Ace has done nothing to change its CERCLA liability."
Explanation: CERCLA is the Comprehensive Environmental Response, Compensation and Responsibility Act and was designed to promote cleaning, maintenance and protection of the environment against hazardous waste.
Those responsible for releasing dangerous substances are identified to take care of their cleaning through the superfunds, therefore by creating the new corporation and transferring the assets: Ace has done nothing to change its CERCLA liability.
Answer:
$535,000
Explanation:
The computation of the Latham's basis in the building is shown below:
= The material cost + direct labor cost + worker pension cost + architectural fees + depreciation on equipment + interest paid during the year
= $300,000 + $150,000 + $5,000 + $15,000 + $25,000 + $40,000
= $535,000
It includes both direct and indirect cost
Since we have to compute for the building so we do not considered the purchase value of land and the loan amount
Answer:
Expenses, Losses, Income and Gains are associated with nominal accounts.
Answer:
d.Expenses for travel as a form of education are not deductible.
Explanation:
Expenses in the nature of travel, are not allowed while the travel might be for the purpose of education.
This is because it is not in the nature of direct expense.
As the expense for the purpose of business which are important for the business to pursue in a more positive manner is preferable and essential for the business.
As extra education and knowledge provide excellence to perform the task for which knowledge is acquired.
