Answer:
Option (A) is correct.
Explanation:
Given that,
Purchasing price of taxi = $32,000
Adjusted basis = $2,000 at the time of the accident
Cost of repair = $2,500
Insurance reimbursed Don = $700
Lesser of Adjusted basis at the time of the accident and Cost of repaired is the amount of causality loss before adjustments.
So, lesser amount is $2,000 as compared to the cost of repair ($2,500).
Therefore,
Amount of causality loss before adjustments = $2,000
Hence,
Don's casualty loss deduction:
= Amount of causality loss before adjustments - Insurance reimbursed
= $2,000 - $700
= $1,300
Answer:
$2,250,000
Explanation:
The computation of retained earnings is shown below:-
Retained earnings 31/1/17 = Retained earning 1/1/17 + Net income of current year - Understatement of depreciation expenses - Dividends declared
= $2,000,000 + 1,000,000 - $430,000 - $320,000
= $2,250,000
Therefore for computing the retained earnings 31/1/17 we simply applied the above formula.
As we assume that the question is asked for the 31/1/17 instead of 1/1/17 as it is already mentioned in the question
Answer:
E-Business
Explanation:
E- Business is a field of buying and selling products on an online forum. It has benefited the global market in a tremendous way and has helped the economies to grow grandly.
As in the question, e- business has helped by expanding global reach, opening new markets through mass customization and personalization, reducing costs by removing intermediaries that facilitate buying and selling of goods through the process of disinter-mediation and selling directly to the consumer; and improving effectiveness
Answer:
The cost of internal equity is 11.18%
Explanation:
The constant growth model of DDM can be used to calculate the price of a stock if the growth rate in the dividend is expected to remain constant. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for price today under DDM is,
P0 = D0 * (1+g) / r - g
We already know the P0, the D0 and the g. We can plug in these values in the formula to calculate r which is the cost of equity capital.
32 = 1.25 * (1+ 0.07) / (r - 0.07)
32 * (r - 0.07) = 1.3375
32r - 2.24 = 1.3375
32r = 1.3375 + 2.24
r = 3.5775 / 32
r = 0.11179 or 11.179%
