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maksim [4K]
3 years ago
6

Ficus, Inc. began business on March 1, 2018, and elected to file its income tax return on a calendar-year basis. The corporation

incurred $800 in organizational expenditures. Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in 2018 is:
a. $4.44b. $53.28c. $44.44d. $800.00e. None of these choices are correct.
Business
1 answer:
Aleks04 [339]3 years ago
7 0

Answer:

c. $44.44

Explanation:

For computing the maximum allowable deduction for amortization of organizational expenditures, first, we have to determine the per month deduction which is shown below:

= Organization expenditure incurred ÷ number of months

= $800 ÷ 180 months

= $4.44

Now for 10 months, it would be

= $4.44 × 10 months

= $44.44

The 10 months is calculated from March 1 to December 31. As we assume the books are closed on December 31

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Condensed financial data are presented below for the Phoenix Corporation:
Solnce55 [7]

Answer:

Part 1.

3.1 times

Part 2.

a. total assets

Part 3

d. the company's ability to generate sufficient cash to repay debt when due.

Explanation:

<u>For Part 1</u>

Inventory turnover measures the activity of liquidity of a company`s inventory. The higher the ratio in comparison, the more efficient the inventory is managed.

<em>Inventory turnover = Cost of Sales ÷ Inventory</em>

therefore,

Inventory turnover = $982,500 ÷ $ 312,500 = 3.1 times

<u>For Part 2</u>

In a common-size Balance Sheet, each item is expressed as a percentage of total assets whereas in a common size Income Statement, Sales revenue is expressed as 100 % and every other item is expressed as a percentage of sales revenue.

<u>For Part 3</u>

Solvency or Liquidity is the ability of short term assets to cover short term liabilities. Also put, it is  the company's ability to generate sufficient cash to repay debt when due.

5 0
3 years ago
Metz Industries stock is twice as risky as the market on average. Given an expected return on the market of A. ​7.35% B. ​16.50%
sergiy2304 [10]

Answer:

B. ​16.50%

Explanation:

We know,

according to Capital Asset Pricing Model​ (CAPM), the expected return, E(r) = risk-free rate + (expected return on the market - risk-free rate) × beta

Given,

Risk-free rate = 2.50%

Expected return on the market = 9.5%

Beta = 2 (We know market beta is 1. As Metz Industries stock twice as risky as the market on average, the beta of the company is 1×2 = 2.)

Putting the values in to the formula, we can get,

The expected return, E(r) = 2.50% + (9.5%- 2.50%) × 2

E(r) = 2.50% + 7% × 2

E(r) = 2.50% + 14%

E(r) = 16.5%

Therefore, the option B is the answer.

7 0
3 years ago
_________________ is the method used to determine the number of units a firm must sell at a specific price to cover all costs.
user100 [1]
The correct answer for the question that is being presented above is this one: "Breakeven analysis."Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It also refers to method that is <span>used to determine when your business will be able to cover all its expenses and begin to make a profit. </span>
6 0
3 years ago
Which information security objective allows trusted entities to endorse information?
Serjik [45]
<span>Certification information is the security objective that allows trusted entities to endorse information.

Certification information is what credits people to be certified in teaching information to other employees and allowing the information to be accredited. To make sure the information is given out properly and is trusted, accurate information we need to make sure its certified and verified. </span>
6 0
3 years ago
At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter h
Daniel [21]

Answer: Individual values

Explanation: In simple words, individual values refers to the personal beliefs and ideas on individual of what he or she considers good or bad. These beliefs starts developing right from the childhood and gets shape from the experiences over time.

In the given case, The organisation at which Shania works has strict working culture but due to the lenient behavior from her manager she takes advantage of coming late.

Hence from the above we can conclude that the correct option is A.

3 0
3 years ago
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