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zhannawk [14.2K]
2 years ago
9

IRS regulations govern the computation of gross profit for GAAP. computation of net income for GAAP. computation of net income f

or the SEC. computation of net income for tax purposes.
Business
1 answer:
tankabanditka [31]2 years ago
8 0

Answer:

The correct answer is letter "D": computation of net income for tax purposes.

Explanation:

The Internal Revenue Service (IRS) is the federal agency in charge of collecting citizens' and companies' taxes in the U.S. The IRS was founded in 1862 and since then it has been in charge of setting and enforcing the regulations on paying taxes. Those rules are calculated based on individuals' and organizations' net income but deductions are offered to promote them meet their liabilities.

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Easy Car Corp. is a grocery store located in the Southwest. It expects to pay an annual dividend of $6.30 next year to its share
emmainna [20.7K]

Answer:

Missing question <em>"1. What is the cost of debt for Easy Corp? 2. How many interest payments are left for the bond of Easy Corp? 3. What is the interest payment per period for the bond? 4. What is the discount rate per period to use in pricing the bonds? 5. What is the market value of equity for Easy? 6. What is the cost of equity for Easy?"</em>

<em />

1. Cost of debt is equal to YTM, which is equal to 10%

Cost of debt = YTM = 10%

2. Number of interest payment to be made is equal to 26 * 2 = 52

This is because payment is made semi annually

3. Interest payment per period = 8.9141% / 2 * $1,000

Interest payment per period = 4.45705% * $1,000

Interest payment per period = $44.57

4. As the period is semiannual, discount rate per period is equal to 10% / 2 = 5%

5. Market value of equity = 600,000*60 = $36,000,000

6. Cost of equity = Dividend price + Growth rate

Cost of equity = 6.3/60 + 0.05

Cost of equity = 0.105 + 0.05

Cost of equity = 0.155

Cost of equity = 15.5%

7 0
3 years ago
A new truck is purchased on January 1, 20X6. The truck cost $10,000, has a 5-year life, and a $2,000 residual value. Given a Dec
Elena-2011 [213]

Answer:

20X9 depreciation expense is $160

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20%.

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

In 20X6, depreciation expense = 40% x $10,000 = $4,000

At the beginning of the year 20X7, the truck cost's book value is $10,000-$4,000 = $6,000

In 20X7, depreciation expense = 40% x $6,000 = $2,400

In 20X8, depreciation expense = 40% x ($10,000 - $4,000 - $2,400) = $1,440

Accumulated depreciation at December 31 20X8 = $4,000 + $2,400 + $1,440 = $7,840

Book value at December 31 20X8 = $10,000 - $4,000 - $2,400 - $1,440 = $2,160

In 20X9, depreciation expense = $10,000 - $2,000 - $7,840 = $160

The 20X9 depreciation expense was $160 which is less than the actual $864 (40% of $2,160). It was done to keep the residual value as estimated ($2,000)

4 0
3 years ago
Airlines utilize _____ because there is constant communication and back-and-forth between gate agents, ticket agents, baggage ha
solniwko [45]

Hey there!

Your answer is reciprocal independence.

In reciprocal independence, different areas of a company are constantly communicating with each other.

Sequential independence means that one area is dependent on the actions of another, which is not what this is describing.

In pooled independence, different parts of the business are very separate and don't really interact with others, which is definitely what this is describing.

Hope this helps!

4 0
3 years ago
Raul wants to join the directors of World Trade but currently owns no shares in the company. He knows that no one else will help
erica [24]

Answer:

$294,412.8

Explanation:

In order to obtain a seat on the board of directors, Raul must hold more than 50 percent of the total number of outstanding shares if there are three open seats and straight voting occurs.

Total number of shares required = (46,000 ÷ 2) + 1

= 23000 + 1

= 23,001 shares

Market price of share = $ 12.80

Total amount = Total number of shares required × Market price of share

= 23,001 × $ 12.80

= $294,412.8

The amount Raul wants to invest on obtaining a seat on board of directors is $294,412.8

7 0
2 years ago
Which of the following statements about comparative advertising is true? Comparative advertisements now constitute over 90% of a
alexira [117]

Answer:

Comparative advertisements need legal support for their claims and must not misrepresent competing products/brands

Explanation:

Comparative advertisement is also called advertising war. A competitor is named in the advertisement and reasons are given why the competitor's product is inferior to the one being advertised.

In this type of advertisement to prevent adverse legal action the company needs to carry out extensive research to provide legal backing for their claims.

Firms must also not misrepresent the competitor's product as this can lead to legal action.

3 0
3 years ago
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