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Natasha_Volkova [10]
3 years ago
7

If inventory is being valued at cost and the price level is steadily rising, which of the three costing methods (FIFO, LIFO, wei

ghted-average) will yield the lowest annual income tax expense?
Business
1 answer:
Nat2105 [25]3 years ago
5 0

Answer:

LIFO                

Explanation:

It will be the one that give higher Cost of goods sold. We also know that:

Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory

So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.

Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.

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Which of the following is not true of taxable asset purchases?
shutvik [7]

Answer:

e. None of the above

Explanation:

The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.

If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.

In case of taxable asset purchases, the tax credits or the net operating losses cannot be transferred from the target firm to the acquiring firm.

6 0
2 years ago
William pays $500 premium every six months for automobile insurance with collision coverage. His deductible is $750. William cau
stich3 [128]

<span>A collision coverage type of insurance only the covers the cost that is incurred due to damage to your car. It does not include the cost for the other car. Therefore you will have to pay the total of $1,100</span>

6 0
3 years ago
Read 2 more answers
]the cycle in which money changed hands resulted in profits for businesses and salaries for workers.
Georgia [21]

The cycle of money where it results to profits for business and salaries for workers are when we pay money for the services or things that we buy and this ends when we receive the items and services we need. Cash conversion is also another term for this cycle.    

7 0
3 years ago
Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock out
lubasha [3.4K]

The annual dividend on the preferred stock is $1000 in total.

<h3><u>What is an Annual dividend?</u></h3>
  • An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
  • A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
  • The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.

Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.

The company has 2000 shares of 5% that is: (2000*5)/100 = 100

with a par value of $10, which becomes:

100*$10 = $1000.

Know more about Annual Dividend with the help of the given link:

brainly.com/question/15871366

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3 0
2 years ago
Diversity is more than recruiting and keeping minorities. Diversity means appreciating and understanding other differences in ou
Kruka [31]

Answer:

The correct answer is: disabilities, sexual orientation, religious preferences, and even personality differences such as extroverts and introverts.

Explanation:

Diversity refers to the difference, the existence of the variety or the abundance of things of different characteristics. The term comes from the Latin language, from the word "diversitas".

The concept of diversity is applicable in many and of the most different cases, for example it can be applied to the different living organisms, to the different ways of applying techniques, to the diversity of individual choices, among others. Below we explain some forms of diversity.

There are different types of diversity:

Biodiversity or biodiversity.

Cultural diversity.

Sexual diversity

Functional diversity.

Ethnic diversity.

Linguistic diversity.

8 0
3 years ago
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