Answer:
(A) market saturation
Explanation:
A franchisee starts a new franchise by entering into a franchising agreement with a franchiser to use its brand name and sell its products. The biggest challenge faced by this new franchise is market saturation.
This occurs because<u> the presence of other similar businesses, whether franchises or independently owned businesses in the market, creates lots of competition for the new franchise.</u>
I think it's C
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Answer: $107,600 ordinary gain and $530,400 Section 1231 gain
Explanation:
Section 1231 property is when a business property that's either real or depreciable is held for more than one year. It should be noted that section 1231 gain which arises when the property is sold will be taxed at lower capital gains tax rate which is versus the ordinary income rate.
Therefore, Kuong should characterize the $638,000 gain recognized on sale as $107,600 ordinary gain and $530,400 Section 1231 gain.
The correct option is C.
Answer: c. Incremental
Explanation:
Simply put incremental cashflow is the additional cashflow that accrues to a company when it takes on a new project. The Multinational company should therefore consider this when they are accepting a project.
If the new project has a positive incremental cashflow, it will add to the cashflows of the company and so should be initiated as opposed to those with negative incremental cashflows.
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $66,000
Salvage value= $5,700
Useful life= 6
F<u>irst, we need to calculate the annual depreciation using the following formula:</u>
<u></u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (66,000 - 5,700) / 6= 10,050
<u>2017:</u>
Annual depreciation= (10,050/12)*3= $2,512.5
<u>2018:</u>
Annual depreciation= $10,050
