Answer and Explanation:
The computation of the federal income tax ramifications are shown below:
At the corporate level, the capital gain is
= Worth of the land - the purchased value of the land four years ago
= $240,000 - $160,000
= $80,000
Since there is four shareholders, so the amount each shareholder held is
= $80,000 ÷ 4
= $20,000
And, the David stock basis drop is
= David basis in S corporation stock - land worth + amount of each shareholder
= $270,000 - $240,000 + $20,000
= $50,000
Answer:
A. 68,800
Explanation:
Cash balance at end of April is = Beginning cash balance on April 1st + Cash collection in April - Purchase of Materials in APril - Operating Expense in April - Capital Expenditures in APril = 14000 + 42000 - 7000 - 7000 - 5000 = 37000
Cash balance at end of May is = Beginning cash balance in May + Cash collection in May - Purchase of Materials in May - Operating Expense in May = 37000 + 45000 - 7200 - 6000 = 68,800
Answer: Not a wise investment as Cost exceeds Receipts.
Explanation:
As the amount is a constant payment, it is an annuity and as it is in future we are looking for the future value of an annuity:
Future Value of Annuity = Annuity * [ ( 1 + rate ) ^ time period - 1] / rate
= 7,000 * [ ( 1 + 5%)⁸ - 1] / 5%
= $66,843.76
Speculator pays $66,843.76 for loan and sells for $50,000.
The speculator would be paying more for the loan than they will sell the land for so this is not a wise investment.
Answer:
B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money
Explanation:
The correct statement above describes a strategy that focuses on many areas at the same time with the goal of increasing competitiveness across the firm.
Because the firm becomes competitive in many areas such as quality, amount of products offered, technology, and marketing, it is harder for competitors to outperform it in all of those aspects at the same time.
Even if the firm loses its grip in one area, it still remains competitive in other areas, and that is the very definition of a sustainable competitive advantage.
Answer:
$12,500
Explanation:
interest expense = $500,000 x 10% x 3/12 = $12,500
The dirty price of the bonds will include accrued interest expense. The bonds are issued at a premium since the market rate is lower than the coupon rate, but the amortization of the premium will reduce future interest expense, it cannot reduce past events.
