Answer:
Accounting rate of return = 20.53%
Explanation:
<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>
The simple rate of return can be calculated using the two formula below:
Accounting rate of return
= Annual operating income/Average investment
× 100
Average investment = (Initial cost + scrap value)/2
= 30,000/2= 15,000
Accounting rate of return = ( 3080/15,000) × 100
= 20.53%
Accounting rate of return = 20.53%
Rounding off statistics helps the audience remember them better. There are many things that should be done when talking about statisics and going over them but out of the above choices, the most correct is making sure that the audience remembres and understands the statsitics. Statistics will not be remember by many when they are a long series of numbers even if they are as exact as it can be,
Answer:
D. Sole proprietorships are taxed at the owner's personal tax rate
Explanation:
Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.
Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.
<u>From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.</u>
Therefore, option D is correct.
Answer:
$180,000
Explanation:
Goodwill = Purchase Price - Net Assets Taken over at Fair Value
where,
Purchase Price = $635,000
Net Assets Taken over at Fair Value = $ 500,000 - $45,000 = $455,000
therefore,
Goodwill = $635,000 - $455,000 = $180,000
