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Firlakuza [10]
3 years ago
10

Barber Corporation purchased all the assets of TECO Corporation for $1,820,000. An appraisal yielded the following: the building

had a fair market value of $1,200,000; equipment a value of $1,000,000; and office equipment a value of $400,000. What is the depreciable basis for the office equipment?a. $400,000
b. $300,000
c. $280,000
d. $250,000
Business
1 answer:
Maru [420]3 years ago
8 0

Answer:

c. $280,000

Explanation:

The depreciable basis for each class of asset given is based on the fair market value of these assets. This is used as the basis for apportionment.

Given;

Total purchase cost of assets =  $1,820,000

Fair value of ;

Building = $1,200,000

Equipment = $1,000,000

Office equipment = $400,000

The depreciable basis for the office equipment

= ($400,000/($400,000 + $1,000,000 + $1,200,000)) × $1,820,000

= ($400,000/$2,600,000) × $1,820,000

= $280,000

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Barriers to entry are referred to as the obstacles which makes it highly difficult for a firm to enter a given market. Because of the characteristics of the market, they may arise naturally or they may be artificially imposed by firms already operating in the market or by the government.

Common barriers to entry can include strong brand identity, special tax benefits to existing firms, patent protections, high customer switching costs, and customer loyalty.

Thus, other barriers may include the need for new companies to obtain licenses before operation.

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D Saving bonds.
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Typically most high school students who are 16 or older work an average of ___ hours per week
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Why should humans be concerned about rarity of species, not just extinction rates?.
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7 0
2 years ago
You pay $20,800 to the Laramie Fund which has a NAV of $18.00 per share at the beginning of the year. The fund deducted a front-
Kitty [74]

Answer:

6.92%

Explanation:

Beginning investment fund is $20,800.

Now, fund available= Beginning fund(1-front end load)

=20,800(1-0.03)=$20176

Now, the number of shares that can be brought with the available fund

[tex}\text{Number of shares}=\frac{\text{fund available}}{NAV_{beginning}}[/tex]

=\frac{20176}{18}

=1120

Now calculating closing NAV

NAV(closing)=NAV(beginning)=(1+increased%)

=$18(1+12%)=18×1.12

=$20.16

Calculate year end asset value

Year end asset value =NAV(closing)×No. of shares

=$20.16×1120=$22579.2

Value of investment after deducting the expense ratio

Closing investment value = Year end asset value×(1-expense ratio)

=$22579.2×(1-1.5%)

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7 0
4 years ago
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