Answer:
Price skimming.
Explanation:
Price skimming is a pricing strategy in which an organization gradually lowers it's selling price after initially charging it's customers a high price in order to attract more price-sensitive customers. It is mostly used by a first-mover who faces lesser competition in business.
In this scenario, Cosmeticon had no competitors in that segment of the Indian cosmetics market, so it set a very high price for its products in order to reach the premium, price-insensitive segment of the market.
Answer: No deduction can be claimed this year.
Explanation:
The options to the question are:
a. No deduction can be claimed this year.
b. $5.50 million
c. $2,500,000
d. $5.50 million only if the professional golf tournament is played before April 15.
Answer:
Since Ajax Computer company is an accrual method calender-year tax payer, the computer company would recognize the expenses only when such expenses are incurred and not at the time that cash is being paid for the the expenses
Ajax computer company already paid in advance for both advertisements the following year even though the advertisement eanst taking place that year. Therefore, the payments will not be considered to be an expense until advertisements has actually taken place. Because of this, Ajax cannot deduct the amounts paid for the advertisements next year and hence, no deduction will be claimed this year.
Hello, yes it's actually common for people to give up their home to avoid further payment only if their lender agrees and allows that to happen. But of course, the remaining balance (the difference of the house value and what's left of the mortgage) must be paid. Walking away from an underwater mortgage can seriously affect that person's financial future and by extent his/her relationship with the community. His/Her credit score will go down with this, it may be difficult for him/her to qualify for another mortgage in the future. Another reason is that - in most states, it is completely legal for lenders to go after the difference (deficiency) because technically they own that and have rights to it.
