Answer:
Correct option is (B)
Explanation:
Given:
Beginning capital = $80,000
Net income = $35,000
Drawings = $18,000
Net income is added to opening capital and deduct drawings to arrive at capital balance at the end.
Capital at the end of the year = opening capital + net income - drawings
= 80,000 + 35,000 - 18,000
= $97,000
I think that its either A or D! hope this helps
Answer:
1,011.429 dollars
Explanation:
The dealer is willing to sale bond (we purchase from the dealer) at the ask price
In this case 1,011.429 dollars per bond.
If anyone want's to purchase those bonds will have to pay this amount per bond.
The opposite to the ask price is the bid price, which is the price at which the dealer is willing to purchase bond (we sale it to the dealer).
Answer:
total weight of debt = 0.343 or 34.3%
Explanation:
stock's market value = 17,500 x $69 = $1,207,500
bond₁'s market value = $250,000 x 101.5% = $256,750
bond₂'s market value = $350,000 x 106.5% = $372,750
total market value of the firm = $1,837,000
weighted capital structure:
market value weight
stocks $1,207,500 0.657
bond₁ $256,750 0.140
bond₂ $372,750 0.203
total $1,837,000 1
total weight of debt = 0.343 or 34.3%
Answer:
Capital gains distribution is treated as long term
Capital gain from from redemption is treated as short term
Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.
Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.
