1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ycow [4]
3 years ago
8

"Nanci purchases all of the assets of Michael's Security Service for $200,000. The assets are as follows: Asset Adjusted Basis F

air Market Value Inventory $25,000 $50,000 Equipment 60,000 40,000 Supplies 20,000 20,000 Building 80,000 95,000 Land 10,000 20,000 $195,000 $225,000 What is Nanci's basis in the equipment?"
a. $17,776
b. $35,556
c. $40,000
d. $60,000
e. $61,538
Business
1 answer:
maxonik [38]3 years ago
6 0

Answer:

option (b) $35,556

Explanation:

Given:

Cost of purchase of assets = $200,000

Asset            Adjusted Basis        Fair Market Value

Inventory      $25,000                     $50,000

Equipment   $60,000                     $40,000

Supplies       $20,000                     $20,000

Building        $80,000                     $95,000

Land             $10,000                      $20,000

Total            $195,000                    $225,000

Now,

since, fair market value is greater than Basis,

Percentage FMV on Equipment =\frac{\textup{FMV for equipment}}{\textup{Total FMV}}\times100\%

⇒ Percentage FMV on Equipment = \frac{\$40,000}{\textup{225,000}}\times100\%

= 17.77%

thus,

Nanci's basis in the equipment = Percentage FMV × Assets

= 17.77% × $200,000

= $35,555.56  ≈ $35,556

Hence,

The correct answer is option (b) $35,556

You might be interested in
3. If the Wall Street Journal published an article w/ the headline "Poultry Farmers Detect Infectious Avian Bird Flu," what woul
Vadim26 [7]

Answer:

If such a headline was published, the demand for chicken and its byproducts would plummet. The demand curve would shift to the left, meaning that the quantity demanded would decrease at all price levels.

The quality of the chicken and its byproducts has changed here, since they would turn into potentially unhealthy food.

The determinant of the demand for chicken products that is altered by this article is consumer preferences. The health of consumes is at risk, which would alter their preferences due to fear of getting sick.

5 0
2 years ago
The following totals for the month of June were taken from the payroll records of Seminole Company: Salaries, $100,000 FICA taxe
tekilochka [14]

Answer:

Given that,

Salaries = $100,000

FICA taxes withheld = $7,650

Income taxes withheld = $18,000

Federal unemployment taxes = $450

State unemployment taxes = $2,100

Therefore,

Payroll Tax Expense:

= FICA taxes withheld + Federal unemployment taxes + State unemployment taxes

= $7,650 + $450 + $2,100

= $10,200

The journal entry is as follows:

Payroll Tax Expense A/c                 Dr. $10,200

To FICA taxes withheld                                          $7,650

To Federal unemployment taxes                           $450

To State unemployment taxes                               $2,100

(To record accrual of employer’s payroll taxes)

6 0
2 years ago
The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, whil
allsm [11]

Answer:

It is 3.25 times

Explanation:

EBITDA Multiple = Enterprise Value/ EBITDA

Where EBITDA =  EBIT+Depreciation & Amortization

              =  $91,000+$157,000

              =$248,000

Enterprise Value (EV) =  Market value of the equity +Debt-Cash and Cash Equivalent

EV= $645,000+$215,000-$53,000

    =$807,000

Hence, EBITDA Multiple = $807,000/$248,000

                                        =3.25 times

EBITDA Multiple is used to compares a company’s Enterprise Value to its annual EBITDA.

8 0
3 years ago
Read 2 more answers
Sinh viên hãy chứng minh rằng “Việc triển khai thực hiện mục tiêu chiến lược dài hạn về doanh thu của ABC đến năm 2025” có liên
ra1l [238]

Answer:

jh

Explanation:

3 0
2 years ago
Amount Financed (m) = $500 Number of Payments per year (y) = 12 Number of Payments (n) = 12 APR (I) = 17% c = $
sergejj [24]
Hi there!

The answer to your problem is c = $46.04

Your friend, ASIAX
7 0
3 years ago
Other questions:
  • A landowner validly conveyed a small office building to the green party "as long as they use it for operating quarters until the
    6·2 answers
  • On January 1, 2018, Brian Company purchased at par $831,000, 6 percent bonds issued by Laura Company to be held as available-for
    7·1 answer
  • Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of
    8·1 answer
  • When State Farm uses consumer research to create a mental map of consumers that indicates consumers perceive State Farm as conse
    10·1 answer
  • The wealth effect refers to the fact that
    15·1 answer
  • Question 1 Multiple Choice Worth 10 points)
    12·1 answer
  • While noreen was driving down the highway, she saw two cars on the side of the road. she noticed that no one was hurt and that n
    14·1 answer
  • Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion
    5·1 answer
  • In the first quarter of operation, the Blending Department of ChemUSA produced 50,000 barrels of Compound X and left 20,000 barr
    15·1 answer
  • sam manages a fast-food restaurant. he is frustrated because employees often call in sick at the last minute before the start of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!