Answer:
A. N0
B. She may likely bargain for the payments that was reason been that she expects the payments to be in a lower marginal tax bracket in 2021
C. NO
Explanation:
a. No .Based on the information given the amount of $252,000 was NOT constructively received in the year 2020 reason been that She has the amount of $132,000 which is a deferred income amount that
is not constructively received in 2019 and the reason why the amount was not received was because been under the main contract terms she did not have the sole right to receive the income in the year 2020.
b. Freda's willingness to spread her salary over a longer period of time may be due to the fact that She may likely bargain for the payments reason been that she expects the payments to be in a lower marginal tax bracket in the year 2021
c. Based on the information given she is NOT in constructive receipt of the income in the year 2020.
Answer: Step 1) Find share of market in the Portfolio
(11.5-3.5)x+3.5=6.5
8x=3
x=3/8
x=0.375
=37.5%
SD of market portfolio= 0.375x+0=9.5
x=9.5/0.375
=25.33%
correl = cov / (std 1 * std2)
0.4=COV/0.2533*0.545
COV= 0.2533*0.545*0.4=0.05
cov of 2 assets = b1 * b2 * variance of market
0.05=B1*1*0.2533^2
B of security=0.0032
Capm Model
3.5+0.0032(11.5-3.5)=3.5256% expected return
Explanation:
Step 1) Find the share of market in the portfolio in order to find market SD
Step 2) Find Covariance betweens security and market by using both SDS and correlation
Step 3) Find Beta of Security using Co variance
Step 4) Use the Beta in CAPM model in order to find expected return
Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
Answer:
Total deduction for the year = $48,956
Explanation:
You can deduct investigation expenses but only for new business that is in the same industry as your current business. In this case, Henrietta incurred in $42,500 expenses trying to expand her hotel business. Total deduction for the current year = $42,500.
If the investigation expenses are not related to your current business, e.g. restaurants, then you can capitalize the costs and amortize them only if you actually carried out the expansion.
You can deduct up to $5,000 during the first year but this amount decreases by $1 for every dollar above $50,000. Total immediate deduction = $4,400. The remaining $46,200 must be amortized over 180 months. Amortization per month = $46,200 / 180 = $257
Total amortization for year 1 = 8 months x $257 = $2,056
Total deduction for the year = $42,500 + $4,400 + $2,056 = $48,956