Answer:
E&P $1,200,000 × 25%= $300,000 reduction
Crane Corporation would reduce its E & P in the amount of $300,000 as a result of the redemption.
This represents a 25% decrease in the amount of the E & P corresponding to the 25% stock redemption.
When a stock redemption results in sale or exchange treatment for the shareholder, the E & P account of a corporation is reduced in an amount not in excess of the ratable share of the E & P of the distributing corporation attributable to the stock redeemed.
As such, none of the expense of $13,000 of accounting and legal fees or other is deductible.
Answer:
a. Compare the mean tensile strengths at the 95% confidence level.
Explanation:
W. L. Gore has nearly 10,000 employees and more than $3 billion in annual revenues, but, as noted earlier, uses an extremely organic organizational structure. Employees have no bosses, participate on teams, and often create roles for themselves to fill functional gaps within the company.
Answer: 13%
Explanation:
The Internal Rate of Return is the discount rate that brings the Net Present Value to zero.
One can use Excel to solve for this;
= IRR(-127900, 43800, 40200, 46200, 41800)
= 13%
Answer:
attend Eastern State University, if MUE/PE EXCEEDS MUW/PW
Explanation:
A rational individual will always choose the alternative that provides the highest marginal utility per dollar invested.
If MUE and MUW represent the marginal utilities, and PR and PW represent the prices, Ryan should attend the university that provides the highest utility per dollar, i.e. the highest MU and the lowest P.
He should attend Eastern State University if the MUE/PE (marginal utility per dollar of Eastern State University) is higher than MUW/PW (marginal utility per dollar of Western State University).
