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xxTIMURxx [149]
3 years ago
12

Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to

day, your inflation-adjusted capital gains would be zero due to inflation over the last eight years. The capital gains tax is 28 percent. If you sold the asset today your tax liability would be
Business
1 answer:
xz_007 [3.2K]3 years ago
5 0

Answer: $8,400

Explanation:

Tax liability for a year is computed on the nominal capital gain as of that year not the inflation-adjusted gain. As such, should the asset be sold today, the capital gains tax of 28% will be computed on the capital gain of $30,000 in the following manner;

= 28% * 30,000

= $8,400

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The stockholders' equity of Verrecchia Company at December 31, 2013, follows:
liq [111]

Answer:

Verrecchia Company

Financial Statement effects:

1. Jan. 5 Issued 10,000 shares of common stock for $12 cash per share:

Assets (Cash) would increase by $120,000

Equity (Common Stock) would increase by $120,000

2. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share.

Assets (Cash) would decrease by $60,000

Equity (Common Stock) would decrease by $60,000

3. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share.

Assets (Cash) would increase by $18,000

Equity (Common Stock) would increase by $18,000

4. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share.

Assets (Cash) would increase by $6,500

Equity (Common Stock) would increase by $6,500

5. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share.

Assets (Cash) would increase by $175,000

Equity (Preferred Stock) would increase by $125,000

Equity (Additional Paid-in Capital - Preferred) would increase by $50,000

Explanation:

The Financial Statement effects of each transaction is a reflection of how each transaction affects at least two opposite elements of the financial statement.  Every transaction affects the elements of the financial statement in one way or another, which enables the accounting equation to remain in balance.

For example, a transaction may increase the assets and also increase either the liabilities or equity side of the balance sheet.

In our example, the transactions affected only the balance sheet.  This means that each transaction increases or decreases the assets, liabilities, or equity sections.

5 0
3 years ago
Golf Digest Companies marketing research department used focus groups, consumer diaries, purchase protocols and in-depth intervi
Radda [10]

Answer:

D. Qualitative methods

Explanation: Research methods are the various Strategic actions and techniques used to carry out a research, it can also be said to the techniques through which a researcher collect data or materials needed for the research.

Qualitative research methods are techniques used in research which involves open ended questions and Communications.

IN QUALITATIVE RESEARCH METHODS ARE SPECIFICALLY DESIGNED TO ENHANCE OPEN COMMUNICATION,IT HELPS THE RESEARCHER TO GET IN DEPTH KNOWLEDGE ABOUT THE RESEARCH AUDIENCE.

8 0
3 years ago
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of prod
DedPeter [7]

Answer:

Recher Corporation:

a) Financial impact of buying part Q89:

i) Relevant costs for In-house production of part Q89 are the avoidable costs:

Direct materials - $7.60

Direct labour - $4.20

Variable overhead - $8.30

Supervisor's salary $3.20

Avoidable general overhead - $0.81

Avoidable cost = $24.11 per unit

Total = $24.11 x 6,200 = $149,482

ii) Relevant cost of buying outside equals outside price minus additional segment savings = (6,200 x $27) - $15,600 = $151,800

When i) is compared with ii), it shows that it would cost more to buy outside ($151,800) than to produce the part in-house ($149,482).

b) The alternative the company should choose is to produce in-house.

Explanation:

a) The avoidable general overhead of $0.81 was obtained by dividing $5,000 of general overhead by 6,200 units, i.e. $5,000 / 6,200.

b) The depreciation for the special equipment is not included as it is not relevant.  It must be incurred no matter the option chosen.

c) The relevant cost of buying the part outside was reduced by $15,600 since this amount would be realized as additional margin with the choice.

d) |n making cost decisions, relevant and avoidable costs are considered.  Any cost that will be incurred notwithstanding the choice made is not relevant.  Such costs are unavoidable.  For example, the depreciation on the equipment.

5 0
3 years ago
A stock paid $2.64 in dividends at the end of last year and is expected to pay a cash dividend
Sindrei [870]

Answer:

$117.26

Explanation:

Easy.

4 0
3 years ago
Read 2 more answers
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweate
torisob [31]

Answer:

A

Explanation:

The country with a comparative advantage in the production of a good should export the good

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

England

Comparative advantage in the production of scones = 1/50 = 0.02

Comparative advantage in the production of sweater = 50/1 = 50

Scotland

Comparative advantage in the production of scones = 2/40 =  0.05

Comparative advantage in the production of sweater = 40/2 = 20

England has a comparative advantage in the production of scones and should export scones

Scotland  has a comparative advantage in the production of sweaters and should export sweaters

7 0
3 years ago
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