Answer:
(a) March 12, 2017
(b) Recognized gain = $15,000
(c) Adjusted basis = $450,000
(d) Recognized gain = $175,000
Mitchell basis = $625000
Explanation:
(a) March 12, 2017 is the earliest Mitchell can acquire a new restaurant and qualify for § 1033 postponement
(b) Assuming that he elects postponement of gain under § 1033, the recognized gain is calculated as;
Recognized gain = Award received - cost of land
=$625000 - $610,000
= $15,000
(c) From the question, Mitchell's adjusted basis for the new land and building is $450,000
(d) If Mitchell does not elect § 1033, his recognized gain is calculated as;
Recognized gain = Award received- adjusted basis for the building
=$625,000 - $450,000
=$175,000
Also,Mitchell basis for the new land and building is $625000
False. You should worry MORE about business ethics when you work for yourself to ensure for a better business and avoid getting sued
Answer:
The expected return is 13%.
Explanation:
Note: Before answering the question, the full question is first stated as follows:
A firm's stock cash dividend per share for last year was $2.78 and is expected to be $3 at the end of this year, the current stock price is $60, and the growth rate for dividends is 8 percent. Using the Gordon approach, what is the expected return?
The answer to the explanation of the answer is now as follows:
Gordon’s theory which is also known as ‘Bird-in-the-hand’ theory states that the importing factor to consider in determining the value of a firm are the current dividends.
Therefore, the Gordon growth model (GGM) formula which assumes that there will a stable dividend growth rate year after year forever is employed for this question as follows:
P = d1 / (r – g) ……………………………………… (1)
Where;
P = current stock price = $60
d1 = next dividend = $3
r = expected return = ?
g = growth rate of dividend = 8%, or 0.08
Substituting the values into equation (1) and solve for r, we have:
60 = 3 / (r - 0.08)
60(r - 0.08) = 3
60r - 4.80 = 3
60r = 3 + 4.80
r = 7.80 / 60
r = 0.13, or 13%
Therefore, the expected return is 13%.
Answer:
Collectivism; democratic; totalitarian.
Explanation:
Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian. These dimensions are interrelated and may share certain characteristics.
Collectivism can be defined as an economical, political or cultural system in which communities (group of people) are generally valued over individuals.
On the other hand, individualism is a sharp contrast to collectivism because it is an economical, political or cultural system in which individuals are generally valued over communities (group of people).
Also, a democratic government is a form of government of the people, by the people and for the people.
Totalitarianism can be defined as a form of centralized government that has an absolute control over the state. Thus, totalitarianism completely prohibits individual freedom, opposing ideologies, principles, political parties, and requires the people to be subservient to the state.
Simply stated, totalitarianism is an autocratic or dictatorial form of government.
