Answer:
a) total revenue equals total cost.
Explanation:
The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.
Therefore, the answer is alternative a).
Answer:
The correct answer is B) vault cash plus deposits with Federal Reserve banks minus required reserves.
Explanation:
Excess reserves refer to capital reserves held by a financial institution or institution in addition to what is required or regulated by regulatory entities or other internal controls in the countries. This practice allows them to handle external situations that affect the market, or allocate it to other items to generate profitability.
Answer:
a. $222,000
b. $22,000
c. $158,000
Explanation:
a. FMV of rental property = FMV of land received + Received cash
= $200,000 + $22,000
= $222,000
b. FMV of land received $200,000
Cash boot received $22,000
Less: Basis of rental property $158,000
Realized gain $64,000
Recognized gain (Boot) $22,000
this transaction qualify for a like-kind exchange under section 1031 When no gain or loss is recognized on an exchange but on Boot received. But recognized gain will be lower of boot amount of realized gain.
c. Carryover basis of original assets = FMV of rental property - Realized gain
= $222,000 - $64,000
= $158,000
Answer:
Annual deposit= $12,473.70
Explanation:
Giving the following information:
Final value= $2,000,000
Number of years= 37
Interest rate= 7%
To calculate the annual deposit required to reach the final value. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= {2,000,000*0.07)/ [(1.07^37) - 1]
A= $12,473.70
Answer:
B. $1,728
Explanation:
Data given in the question
Number of computer equipment purchased = $30,000
So, by considering the above information the maximum depreciation expense is
= Number of computer equipment purchased × depreciation rate under MACRS for 5 years property × half year basis
= $30,000 × 11.52% × 0.5
= $1,728
Refer to the MACRS table to find out the depreciation rate
