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2 years ago

_____ are expense items that do not become part of a final product. select one:

1 answer:

4 0

Business services are expense items that do not become part of a final product.

Business services are intangible items such as IT, finance, management, shipping and more. These services support each other but do not become part of the final product. Installations and supplies are both part of the final product. Supplies to build and installations to put together.

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What is the maximum income to qualify for financial aid 2020

Nata [24]

Currently, the FAFSA protects dependent student income up to $6,660. For parents, the allowance depends on the number of people in the household and the number of students in college. For 2019-2020, the income protection allowance for a married couple with two children in college is $25,400.

8 0

2 years ago

Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the nex

Ivan

Answer:

Gain or (Loss) on sale = (17000) Loss

Cash 253600 Dr

Accumulated Depreciation 226400 Dr

Loss on Sale 17000 Dr

Equipment 497000 Cr

Gain or (Loss) on sale = 9400 Gain

Cash 280000 Dr

Accumulated Depreciation 226400 Dr

Gain on Sale 9400 Cr

Equipment 497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost - Accumulated depreciation

Depreciation 2019 = (497000 - 33000) * 83000 / 580000

Depreciation 2019 = 66400

Depreciation 2020 = (497000 - 33000) * 133000 / 580000

Depreciation 2020 = 106400

Depreciation 2021 = (497000 - 33000) * 67000 / 580000

Depreciation 2021 = 53600

Carrying value = 497000 - [ 66400 + 106400 + 53600 ]

Carrying value = $270600

Gain or (Loss) on sale = Sales price - Carrying Value

Gain or (Loss) on sale = 253600 - 270600

Gain or (Loss) on sale = (17000) Loss

Cash 253600 Dr

Accumulated Depreciation 226400 Dr

Loss on Sale 17000 Dr

Equipment 497000 Cr

Gain or (Loss) on sale = Sales price - Carrying Value

Gain or (Loss) on sale = 280000 - 270600

Gain or (Loss) on sale = 9400 Gain

Cash 280000 Dr

Accumulated Depreciation 226400 Dr

Gain on Sale 9400 Cr

Equipment 497000 Cr

6 0

2 years ago

Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. I am buying a firm with a

algol [13]

This wouldn’t by chance have multiple choice options would it?

5 0

2 years ago

When appreciated property is distributed in a nonliquidating distribution, the net effect on the distributing corporation's E&am

lys-0071 [83]

Answer:

True

Explanation:

"Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders. At the shareholder level, a nonliquidating corporate distribution can produce a variety of tax consequences, including taxable dividend treatment, capital gain or loss, or a reduction in stock basis. [...]

The corporate-level tax consequences of a nonliquidating corporate distribution depend on whether the distribution consists of cash or property (other than cash). The corporation does not recognize gain or loss when it distributes cash to shareholders or when it redeems stock in exchange for cash payments."

Reference: Ellentuck, Albert B. “Understanding the Effects of Nonliquidating Distributions on Corporations.” The Tax Adviser, 1 Jan. 2009

8 0

3 years ago

Projects A and B both require an initial investment of $100,000. Project A produces $200,000 in cash flows in the subsequent 5 y

Marysya12 [62]

Answer:

d. The NPV of project A will be more sensitive to changes in the cost of capital compared to the NPV of project B

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The sensitivity to cost of capital can he determined by calculating the npv using different cost of capitals.

Net present value can be calculated using a financial calculator.

For the first project:

Cash flow in year zero = -100,000

Cash flow each year from year one to five = 200,000

Npv when I is 8% = 698,542.01

Npv when I is 10% = 657,157.35

NPV when I is 12% = 620,955.2

For the second project:

Cash flow in year zero = -100,000

Cash flow in year one = 400,000

Cash flow in year two = 300,000

Cash flow in year three = 200,000

Cash flow in year four and five = 50,000

Npv when I is 8% = 757,119.12

Npv when I is 10% = 727,029.95

NPV when I is 12% = 698,804.32

The percentage change in the npvs of project A is greater than the percentage change in npv of project b when different cost of capitals are used. Thus, project A is more sensitive to cost of capital.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago