Answer:
If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.
Joel is also able to deduct depreciation expenses, real estate taxes, and other costs from his passive income.
As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.
Answer:
The IRR is 4.08%
Explanation:
In calculating the internal rate of return in excel,the cash outflow of $76.63 is shown in year 0 with a negative sign to indicate that it is the initial investment on the share, followed by dividends in received in later years shown as positive figures ,however in the fifth the dividend received and the cash received from disposing of the share were added together to show total cash inflow in the last year.
The computation of IRR is shown below
IRR for the share purchase
Years Cash flow
0 -76.63
1 1.37
2 1.55
3 1.66
4 1.74
5 86.61
IRR 4.08%
Find attached for detailed computation.
Answer: $7,500
Explanation:
In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.
Starting off we will calculate the amount of savings they will make by using the new machine,
= $12,000 x 5 years
= $60,000
Calculating the Incremental income therefore we have,
= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)
= $7,500
The incremental income of buying the new machine is $7,500.
If you need any clarification do comment.
Answer:
The correct answer is letter "B": expresses items as a percentage of net sales.
Explanation:
A Common Size Income Statement reflects a percentage of net sales for each account. Common size income statements are basic tools that a business owner may use to compare the performance of his company to rivals or to compare the company to industry averages. Each line in this type of income statement is displayed as a percentage of revenue or sales and the amounts are compared to past performances which allow to observe the different values easily.
Answer:
Customer relationship management
Explanation:
- Customer relationship management is also known as (CRM)
- Customer relationship management has a great role in building interaction between the companies and customers
- It is more based on the strategies and technology rather than meeting individually.
- Social media plays a great role in customer relationship management.
- It is the best way to attracts the customer towards the product.
