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yulyashka [42]
3 years ago
9

Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the

first piece of equipment is $72,000 and that of the second piece of equipment is $108,000. What is Sebastian's basis in these two assets?
Business
1 answer:
Schach [20]3 years ago
8 0

Answer:

$100,000

Explanation:

According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''

Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

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Identify two components from the business environment and support them with one example of each​
aev [14]
Business environment is simply the environment in which the business operates.

It includes the industry situation, the customers, the suppliers, the demand and supply of products of business, competitive position, government regulations, and everything that affects the business, directly or indirectly.
3 0
2 years ago
Noncompensatory stock option plans have all of the following characteristics except:__________
zmey [24]

Answer: d. A provision related to the achievement of certain performance criteria

Explanation:

While compensatory plans are used in order to compensate the employees of a particular company, the noncompensatory stock option is one whereby the employees of a company are allowed to purchase the stock of that company at a particular price t a specific price and at a particular time period.

Some of its characteristics include:

• participation by substantially all full-time employees who meet limited employment qualifications.

• equal offers of stock to all eligible employees.

• a limited amount of time permitted to exercise the option.

Option D that "provision related to the achievement of certain performance criteria" isn't a characteristics. Therefore, D is the answer.

7 0
3 years ago
Which is NOT one of the similarity between projects and operations Both are Performed by Individuals Both are Limited by constra
bonufazy [111]

Answer:

Both are ongoing

Explanation:

Remember, projects do not go on forever. Rather, projects are usually marked by deadlines. However, operations are simply ongoing activities in which resources are planned, executed, monitored and controlled by individuals.

which may be constrain

A none similarity between projects and operations is that, they both are not ongoing .

5 0
3 years ago
A stock with a current market price of $50 and a strike price of $45 has an associated put option priced at $3.50. This put has
Rashid [163]

Answer:

The answer is D

Explanation:

Intrinsic value can be found by simply using the following formula

Put intrinsic value = Strike Price - Current selling price

this gives,

PIV = $45 - $50 = $-5

A put intrinsic value cannot be vegetative as it can be exercised right now at the current price. Thus it is interpreted as 0.

Time value is calculated as follows

Time Value = Option Price - Intrinsic Value

This gives   TV = $3.5 - $0 = $3.5

Hope this helps.

6 0
3 years ago
On December 31, 2017, Ivanhoe Company had $1,313,000 of short-term debt in the form of notes payable due February 2, 2018. On Ja
gizmo_the_mogwai [7]

Answer:

They should be reported in 2 different parts, first under current liabilities as:

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Then under long term liabilities:

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Explanation:

the total short term notes payable on December 31 = $1,313,000

  • $1,044,000 were paid off by issuing common stocks, so that portion of the debt must be reported as notes payable expected to be refinanced (or refinanced debt)
  • the remaining $269,000 which were paid using cash reserves must be reported as current notes payable

5 0
3 years ago
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