Answer:
$120,500
Explanation:
Uchimura Corporation
Total Company
Divisional segment margin $132,800
($84,100 + $48,700)
Less common fixed costs not traceable to the individual divisions X
Net operating income $ 12,300
Hence:
Common fixed costs not traceable to the individual divisions= $132,800 − $12,300
= $120,500
Therefore the amount of the common fixed expense not traceable to the individual divisions will be $120,500
Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.
Answer:
a. After the accident, Amy had the choice of repairing the equipment for $1,800 or selling the equipment to a junk shop for $300.Amy sold the equipment.What amount can Amy deduct for the loss of the equipment?
Amy can deduct $2,000 - $300 = $1,700 as casualty loss. Casualty losses occur due to unexpected and sudden events that damage or destroy assets.
b. After the accident, Amy repaired the equipment for $800.What amount can Amy deduct for the loss of the equipment?
Amy can deduct $1,800 as casualty loss. She can deduct the lesser between the asset cost and the cost or repairing it.
c. After the accident, Amy could not replace the equipment so she had the equipment repaired for $2,300.What amount can Amy deduct for the loss of the equipment?
Amy can deduct $2,000 as casualty loss. She can deduct the lesser between the asset cost and the cost or repairing it.
Answer: Depreciation is tax deductible
Explanation:
Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.
Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.
