:
we can no longer use the simple formulas given in the textbook.
Explanation:
I found the answer in my Mcgraw Hill textbook chapter 10 waiting lines .
Answer:
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Explanation:
According to the given data we can conclude that the tax consequences to Comet because of the stock redemption would be Reduction of E& P due to exchange. In order to calculate the amount of Reduction we would have to make the following calculation:
Reduction of E& P due to exchange=Total E&P*Total voting Right Sold
According to the given data we have the following:
Total E&P=Comet has total E&P of $160,000
Total voting Right Sold=shares redeem by comet/shares by Pat+shares by Pam
Total voting Right Sold=50/ (100+100)
Total voting Right Sold=25%
Therefore, Reduction of E& P due to exchange=$160,000*25%
Reduction of E& P due to exchange=$40,000
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Answer: False
Explanation: In simple words, perfectly competitive markets refers to the markets in which there are large number of sellers operating at a small level. The products offered by the participants are similar and there is no scope of earning unlimited profits.
The public utilities such as electricity and water is usually maintained by the govt. itself or by a private institution under the complete guidance from govt. It is seen as a monopoly market.
Hence the given statement is false.
The machine's first year depreciation expense is $3000.
The units-of-production depreciation method is a depreciation method where the depreciation expense of an equipment depends on the units of a product produced in a given period.
Deprecation expense = (total units produced in year 1 / total units that the machine can produce) x (cost of the asset - salvage value)
<em><u>Deprecation expense in the first year </u></em>
(3,000 / 8,000) x ($10,000 - $2,000)
0.375 x $8,000 = $3000
A similar question was answered here: brainly.com/question/25195121?referrer=searchResults