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sasho [114]
3 years ago
6

Oleander Corporation, a calendar year entity, begins business on March 1, 2019. The corporation incurs startup expenditures of $

64,000. In your calculations, round any division to 2 decimal places. Round your final answer to the nearest dollar. If Oleander elects § 195 treatment, determine the total amount of startup expenditures that it may deduct in 2019. $
Business
2 answers:
jek_recluse [69]3 years ago
8 0

Answer:

$3,556

Explanation:

Because the startup expenditure is above $50,000, the startup expenditures which are not deducted may be amortized over a period of 180 months starting from the beginning of trade.

This is calculated as the startup cost is divided by the total number of months allowed to be amortized and the answer is then multiplied by the months traded during the year. In the case provided the months in which the Oleander Corporation has been trading are 10 months starting from March-December 2019.

Amortizable amount {($64,000 / 180 months) * 10 months}

= $3,556 this is total deduction allowed as startup expenditure.

LekaFEV [45]3 years ago
4 0

Answer:

$3,556

Explanation:

Since the startup expenditures of $64,000 incurred by Oleander Corporation is above $50,000, and we have 10 months in 2019 from March 1 since the business started operation, we can prorate over 18 months as required by law and determine the amount deductible for 2019 as follows:

Deductible startup expenditure = (64,000 ÷ 180) × 10 months = 355.56 × 10 = $3,556 to the nearest dollar

Therefore, the amount deductible for 2019 as startup expenditures by Oleander Corporation is $3,556.

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Answer:

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Explanation:

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There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
Mashutka [201]

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a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

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In conclusion, the relationship between Wilma and the seller is called a sub-agent relationship

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I think this is a true or false question 
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