Purchasing power is a producer's ability to buy goods and services. answer true false

Navy Corporation has E&P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to

anastassius [24]

Answer:

a. A taxable dividend of $15,000

Explanation:

The relevant variables are the friar market value and the tax liability on the land.

The fair market value is the amount at which an asset or a company will be exchanged between a knowledgeable willing seller and a knowledgeable willing seller in an ordinary transaction in the market. Put simply, the fair market value of an asset gives an estimation of the price that a buyer would pay to the owner of the asset if the owner decides to sell the asset.

When a company distributes an asset as a dividend to the owner, any liability taken over on the assets will be deducted from the fair market value of the asset to arrive at the taxable dividend.

From the question, the $55,000 tax liability assumed by Troy will be deducted from the fair market value of the asset to obtained the taxable dividend as follows:

Taxable dividend = Fair market value - Tax liability on the land

= $70,000 - $55,000

= $15,000

Therefore, the taxable dividend is $15,000.

3 0

3 years ago

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9

murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

$C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\$

$46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\$

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0

3 years ago

Department D had materials costs of $10,000 in beginning work in process inventory and added an additional $50,000 in materials

EastWind [94]

Answer:

The correct answer is $3

Explanation:

Cost per equivalent unit = Total costs / EUP for materials = ($50000+ $10000) / 20000 = $3

3 0

3 years ago

Jack Spratt is the production manager for a manufacturing firm that produces wizzy-gadgets and other items. The annual demand fo

Assoli18 [71]

Answer:

200 units

Explanation:

For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

where,

Annual demand is 1,600 units

Ordering cost per order is $25

And, the carrying cost or holding cost per unit per year is $2

Now placing these values to the above formula

So, the economic order quantity is

$= \sqrt{\frac{2\times \text{1,600}\times \text{\$25}}{\text{\$2}}}$

= 200 units

8 0

3 years ago

Which of the answer choices shows the correct punctuation? if managers don't prepare for international business trips, by learni

Mandarinka [93]

The correct use is:

If managers don't prepare for international business trips by learning about the culture, they will be at a disadvantage when negotiating deals abroad.

Punctuation means the marks, such as period, comma, and parentheses, used in writing to separate sentences and their elements and to clarify meaning.

5 0

2 years ago