Answer:
C. All of Adam's profits
Explanation:
If Adam is found guilty of using insider information from the company Beta Computer to gain profits by buying and selling stock of the company. He can be sued by the other security holders and will be held liable to pay all of his profits made with that trade. under the Section 16{b} of the Securities Exchange Act of 1934.
Trump is the founder of it
- Interest = $10000 x .04965 x 13/52 weeks = $124.13
- Proceeds = $10000 – 124.13 = $9875.87
- Effective interest rate = $124.13 / (9875.87 x 13/52) = 5.03%
Answer:
(b) selecting and training new hires at the firm
Explanation:
Circular 230 requirement states that a practitioner must exercise due diligence in respect of those matters which relate to preparing, approving and filing tax returns or any other paper to Internal Revenue Services(IRS).
Due Diligence basically means to ensure that actions and information supplied are correct and not false.
So basically it extends to oral or written representations made to IRS or to a client in respect of matter which are administered by IRS.
Selecting and training new hires at the firm does not relate to IRS.
Answer:
All of the answers are correct.
Explanation:
At the beginning of the accounting period a pre-determined overhead is computed by dividing the estimated overhead production by the estimated basis of operations. The default overhead rate is then applied to manufacturing, so that the standard cost for a product may be calculated
The purpose of using pretermined overhead rates are
Delays in product costing can be avoided
Variation in cost assignment due to seasonality can be prevented
Variation in cost assignment due to short-term variations in volume can be prevented
The Use of predetermined overhead rates serves all the above purposes
Hence, all answers are correct.
