Answer and Explanation:
The Residential properties are depreciated over 27.5 years
Then:
The total amount of depreciation is $15,635. We assume that the property is sold in 2015.
Therefore, depreciation will be allowed only for 5 years such that the annual depreciation will be $3127 for 5 years.
He saves $781.75 annually (0.25*$3127).
If he holds the property for 5 years and then sells it, his 5 years' worth of depreciation will have saved him $3908.75 and it a $10,000 gain taxed at a maximum of 15%
$10,000 gain taxed at a maximum of 25% (or 33% if the gain pushes the taxpayer into a higher tax bracket).
$10,000 gain taxed at a maximum of 25%
Answer:
$607,250 outflow
Explanation:
Net Working Capital is the amount of money needed to maintain operations on a day to day basis.
Net Working Capital = Current Assets - Current Liabilities
where,
<u>Current Assets are calculated as :</u>
Inventory $216,000
Accounts Receivable ($525,000 x 1.09) $575,250
Total $788,250
and
Current Liabilities = $181,000
therefore,
Net Working Capital = $788,250 - $181,000 = $607,250
Conclusion
The project's initial cash flow for net working capital is $607,250 outflow.
Answer:
TRUE
Explanation:
The coupon rate for a bond is fixed and is paid by the issuer of the bond to the bondholder. The cash outlay/inflow to the issuer/bondholder is always the same reardless of the market rate.
The effect of the market rate is on the cost to acquire the bond in the secondary market. It do not change the coupon obligation.
Answer:
The correct answer is D
Explanation:
Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.
So, the marginal principle of retained earnings would be when it will provide the higher rate of return than the shareholders who could achieve after paying taxes on the dividends.
Answer:
d. All of these answer choices are correct.
Explanation:
There are two sections namely debit sections and credit sections. The total of debit and credit sections is always be matched and equaled
The debit sections reports assets and expenses side
whereas, the credit sections reports revenue, stockholder equity, and the liability side.
Moreover, the balances are used to prepare the financial statement i.e income statement, balance sheet, etc
The trail balance is prepared three times i.e non adjusted, adjusted and the post-closing trail balance
