Answer:
At 9.70% discount rate would you be indifferent between these two plans.
Explanation:
Present Value of Perpetuity = P/r
Present Value of Annuity = P/r[1 - (1 + r)^-n]
$14,000/r = $20,000. /r[1 - (1 + r)^-13]
(1 + r)^-13 = 1 - $14,000/$20,000.
(1 + r)^13 = 10/3
r = 9.70%
Therefore, at 9.70% discount rate would you be indifferent between these two plans.
Answer: A Limited liability company
Explanation:
The best option for Emily would be to form a limited liability company, the limited liability company would: still give her a larger control of the business, have little liability on the investors and there would be no double taxing on her.
A limited liability company is a form of business owned by one or more individuals, where there is limited liability, no double taxing therefore no taxing on the company but the owner is taxed by income, income must not necessarily be shared equally among business owners.
The following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT <span> issuing shares of stock</span>
Answer:
1. Apple Stocks Dr. $75,000
Deferred Donation Income Cr. $75,000
2. Apple Stocks Dr. $1,500
Gain on Apple Stocks Cr. $1,500
3. Cash Dr. $ 76,000
Gain/Loss on Apple stocks Dr.$1,500
Apple Stocks Cr.$76,500
Explanation:
1. when stocks are received subject to a condition that we can't recognize donation income. therefore it is recorded as liability. please note that deferred income is called as liability.
2. When value of stocks increase, asset stock of apple also increase by differential amount.
3. when asset is sold, the loss is recognized and assets are knocked off from books and cash asset is recorded.
Collision insurance cover damage
