1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paul [167]
3 years ago
6

Chris donated securities with a cost of $20,000 and a fair market value of $50,000 to a local civic theater. Chris's tax deducti

on was limited to $35,000. At what amount should the theater record the securities at the date of donation
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

$50,000

Explanation:

The theatre should record the securities at the date of donation for $50,000 because for donated securities, they are usually recorded at the fair value upon receipt. Also, for contribution - which is a gift, usually measured at the fair value when received to the not for profit organization , same applies to securities.

You might be interested in
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined  the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  </em>

Using the CAPM , the required rate of return is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

                        = 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0
3 years ago
A real estate salesperson brings a buyer to a For-Sale-By-Owner transaction. The home sells for $120,000, and the seller agrees
sweet [91]

Solution:

The home sells for = $120000

The commission that is paid by the seller is 3 percent

Therefore, commission = 3% of $120000 = $3600

The sales-person is on a 65 percent commission schedule with her broker which means that the saleperson gets the 65 percent amount of the commission.

Thus, the amount which is received by the salesperson from the given transaction is = 65% of $3600 = $2340

Therefore, the salesperson receives $2340 amount from the said transaction.

8 0
3 years ago
The price that a company charged for a basketball hoop is given by the equation where x is the number of hoops that are produced
icang [17]

Answer: 1.3 million

because i know

4 0
3 years ago
Read 2 more answers
How does maggie stead make fizz in the coca cola cans?
RUDIKE [14]
<span>The fizz in coca cola cans is made up of carbon dioxide gas that is compressed. The gas is forced into soda can. The pressure is created when the gas molecules are forced into the tight space. When the can is opened the temperature and pressure changes cause the fizzing.</span>
3 0
3 years ago
Assume that on July 1, 2018, Togo's Sandwiches issues a $2.97 million, one-year note. Interest is payable at maturity.
allsm [11]

Answer:

7% interest at Cec-31 for 6 months:

Dr Interest  expense(7%*$2,970,000*6/12) $ 103,950

Cr Interest payable                                                          $103,950

9% interest at Sept 30 for 3 months:

Dr Interest  expense(9%*$2,970,000*3/12) $66,825

Cr Interest payable                                                          $66,825

6% interest at Oct 31 for 4 months:

Dr Interest  expense(6%*$2,970,000*4/12) $ 59,400

Cr Interest payable                                                          $59,400

8% interest at Jan 31 for 7 months:

Dr Interest  expense(8%*$2,970,000*7/12) $138,600  

Cr Interest payable                                                          $ 138,600

Explanation:

The rationale for debiting interest expense is that is an expense account and increase in expense is normally debited to expense account while interest payable account is credited as the interest obligations are yet discharged by a way of paying cash to investors

5 0
3 years ago
Other questions:
  • At the scene of the crime, the evidence collector found a damp, bloody shirt. the evidence collector quickly wrapped the shirt i
    9·1 answer
  • Distinguish between the short run and the long run. In the short​ run, ______. In the long​ run, ______.
    10·1 answer
  • When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes ________.
    6·1 answer
  • Which document is necessary for nearly everyone who applies for a job?
    12·1 answer
  • Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4
    15·1 answer
  • Your coworker needs to communicate with the cleaning crew that there is no need for them to come in during the holiday break. He
    13·1 answer
  • Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
    8·1 answer
  • g ABC common stock is expected to have extraordinary growth in earnings and dividends of 21% per year for 2 years, after which t
    7·1 answer
  • How can we be careful and attentive in our studies?<br><br><br>​
    13·2 answers
  • A product with a low level of elasticity of demand has which feature?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!