Answer:
Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.
Thus the value of an instalment payment would be greater than the value of a cash payment
Explanation:
The best payday frequency that provide employees with the smoothest cash flow is WEEKLY.
Biweekly means every 2 weeks.
Semi-Monthly means every 15th and 30th of the month.
Monthly means every 30th of the month.
Expenses are incurred daily and the best payday frequency is weekly because you will not have to scrimped and save so much until the next payday. In the event of emergencies, you can easily borrow money with the assurance that it can be paid before the week ends.
Answer:
Explanation:
Debit $ Credit$
a. Cash 3000000
Sales revennue (500*6000) 3000000
Warranty expenses 55000
Estimated warranty liability 55000
Estimated warranty liability 20000
Cash account 20000
b. Cash account 3000000
Sales revenue (500*6000- 56000) 2944000
Unearned warranty revenue 56000
Warranty expenses 20000
Cash account 20000
Unearned warranty revenue 20364
Warranty revenue (56000*20000/55000) 20364
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
Answer:
Black Corporation
e. None of the above.
Explanation:
a) Data and Calculations:
Adjusted basis of assets = $290,000
Fair market value of assets = $300,000
Liabilities transferred = $50,000
Black Corporation's basis = $250,000 ( $300,000 - $50,000)
Tara's basis in the Black Corporation = $240,000
b) According to U.S. Code 351, no gain or loss shall be recognized for Tara if property is transferred to Black Corporation by Tara solely in exchange for stock in Black Corporation, and immediately after the exchange, Tara comes into the control of Black Corporation.
