Answer:
Sissie must report both operations separately, even though the gain in one of them does offset the loss on the other:
- selling of equipment A: reported gain (increased ordinary income) of $22,510 ($60,000 - $37,490)
- selling of equipment B: reported ordinary loss of $14,490 ($23,000 - $37,490)
The effect of both transactions is a net gain of $8,020 that will increase Sissie's ordinary income.
Explanation:
Both assets are § 1231 assets, and § 1245 allows deprecation recapture on the sale of equipment A, so the gain must be considered ordinary income. The loss on the sale of equipment B is a § 1231 loss which must be treated as an ordinary loss.
A sole proprietorship , also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity.
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Answer:
Floating cost adjustment is 3.25%
Explanation:
Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.
Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)
Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448
Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04
= 0.1125 + 0.04
= 0.1525 i.e., 15.25 %.
Flotation cost adjustment = Flotation-adjusted cost of equity - Cost of equity without flotation adjustment.
= 15.25 % - 12 % (given in question)
= 3.25 %.
Conclusion:- Flotation cost adjustment = 3.25 %
The bank puts interest in your account because they take sum of it to loan to ppl and it’s goes through a lot and comes back to your account and then sum
B. It is a state of actual emergeny.
