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Mariana [72]
3 years ago
13

The Modified Accelerated Cost Recovery System​ (MACRS) is a depreciation method used for​ ________ purposes. A. cost accounting

B. budget C. tax D. financial reporting
Business
1 answer:
rjkz [21]3 years ago
5 0

Answer: The correct answer is C

Explanation:

Because it helps you do your taxes and Have a nice day

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Hilary had an outside basis in LTL General Partnership of $15,000 at the beginning of the year. LTL reported the following items
yan [13]

Answer:

$0

Explanation:

$15,000 (Hillary's partnership basis at the beginning of the year) + $10,000 (ordinary business income) + $8,000 (tax exempt income) - $15,000 (reduction in share of partnership's debt) - $25,000 (cash distribution) = -$7,000. Since the basis cannot be negative, it is $0.

Also, since Hillary's adjusted basis resulted in a negative value, she must report a capital gain of $7,000. That way her basis = -$7,000 + $7,000 = $0

4 0
2 years ago
Read 2 more answers
Widget Maker Manufacturing uses job costing. In​ May, material requisitions were $ 44,300 ​($ 39,700 of these were direct​ mater
Airida [17]

Answer:

Beginning Material = $11,500

Explanation:

given data

material requisitions = $44,300

direct​ materials = $39,700

raw material purchases = $58,100

end month balance raw materials inventory = $25,300

to find out

beginning raw materials inventory​ balance

solution

we know that Beginning Material is express as here

Beginning Material = Ending Material - Purchases + Requisitions ..............1

put here value in equation 1  we get

Beginning Material = Ending Material - Purchases + Requisitions

Beginning Material = $25,300 - $58,100 + $44,300

Beginning Material = $11,500

3 0
3 years ago
Which of the following statements about mortgage markets is/are true? I. Mortgage companies service more mortgages than they ori
fredd [130]

Answer:

I. Mortgage companies service more mortgages than they originate.

IV. The government is involved in the residential mortgage markets.

Explanation:

  • A mortgage market is one that is for the sales of the securities and the bonds and the values of the mortgage loan and consists of mostly the primary and secondary markets as the banks and financial institutions
  • A the secondary are the new source of capital and these mortgages involves the companies to have the rights and may also involve the residential mortgage markets.
6 0
3 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,500, $11,500, and
Karolina [17]

Answer: $27569.81

Explanation:

Based on the information given in the question, the amount that Marko is willing to pay today to buy ABC Co. goes thus:

For Year 1:

Discount factor = 12%

12% at Year 1 = 0.892857

Amount = $6500

PV = $6500 × 0.892857

= $5803.57

For Year 2:

Discount factor = 12%

12% at Year 2 = 0.797194

Amount = $11500

PV = $11500 × 0.797194

= $9167.73

For Year 3:

Discount factor = 12%

12% at Year 3 = 0.71178

Amount = $17700

PV = $17700 × 0.71178

= $12,598.51

The amount that Marko is willing to pay today to buy ABC Co will be:

= $5803.57 + $9167.73 + $12,598.51

= $27569.81

7 0
2 years ago
Which of the following statements is/are true? Multiple Choice A. All else held constant, if a company has a beta of 1.2, then t
NikAS [45]

Answer:

Both A and B are true.

  • A. All else held constant, if a company has a beta of 1.2, then the cost of equity for this company will increase if the risk-free rate decreases.
  • B. If you assume a company has debt, then an increase in the tax rate will decrease the weighted average cost of capital for the company.

Explanation:

A)

The formula to calculate the cost of equity is:

cost of equity = risk free rate of return + [Beta × (market rate of return – risk free rate of return)]

e.g. market rate 15%, risk free rate 5%:

cost of equity = 5% + [1.2 x (15% - 5%)] = 5% + 12% = 17%

if the risk free rate decreases to 3%:

cost of equity = 3% + [1.2 x (15% - 3%)] = 3% + 14.4% = 17.4%

B)

the WACC formula = (cost of equity x weight of equity) + [cost of debt x weight of debt x (1- tax rate)]

if the tax rate increases, then the WACC will decrease because (1 - tax rate) will be lower.

6 0
3 years ago
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