Answer: 2.37%
Explanation:
The cost of the investment is:
= $100,000
The yearly benefit of the investment is:
= Raw material decrease - Labor increase
= 9,500 - 1,500
= $8,000
Using Excel, you can calculate IRR in the manner shown in the attachment:
IRR = 2.37%
Let us go to the basic accounting equation: Assets = Liabilities + Shareholder's Equity. The equity multiplier is computed by dividing the total assets with the total shareholders' equity. We know the total assets as $85,3000. Using the formula for the equity multiplier, we can calculate the amount of the shareholders' equity. The given equity multiplier is 1.53. To calculate the shareholders' equity, we just have to divide the $85,300 (total assets) with 1.53 (equity multiplier). We can get the amount of $55,752. Using the accounting equation, we can compute <span>the amount of liabilities as $29,548. The formula to get the debt-equity ratio is dividing the total shareholder's equity by the liabilities. $55,752 divided by $29,548, we can get 1.89 as the debt-equity ratio.</span>
A sociologist might say that this is an example of how economic action is <u>embedded in</u> social relationships.
<u>Explanation:</u>
Answer:
The answers are:
- Jerry must recognize $0 of gain on the transfer of the rental house
- Sally's tax basis is $80,000
Explanation:
Capital gains taxes are usually excluded when you sell a house or transfer the house in a divorce settlement. The exclusion is up to $250,000 of capital gains.
Since Sally didn't buy the house, but received it as part of their divorce settlement from Jerry, the same cost basis will apply to Sally.
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