Name 2 images you can use for presentations

Maksim231197 [3]

The approach is best demonstrated by Free Enterprise

Let understand that Free Enterprise is a system where there are full freedom for individuals and businesses. This system brings economic growth because its encourages entrepreneurs to start new businesses and take risks.

A laissez-faire economy system, notable a theory developed by the French creates the philosophy of giving businesses more autonomy from government rules and regulations

This economy system makes its easier for companies to take risks and invest in the economy.

Learn more about laissez-faire

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3 0

3 years ago

Evaluate the following statement: "Saving money is not lending. How can it be? When I save my money, I put it in a bank. I

salantis [7]

Answer:

The correct answer is option C.

Explanation:

When we save we deposit it in the bank and do not loan it out directly. But the bank keeps a certain portion of it and lends out the rest to those who need credit. So, the savings that we deposit in the bank become the basis of credit creation.

That is why the statement about saving and lending given in the question is incorrect.

3 0

3 years ago

In year 2, Sammi Corp. changes its inventory method from FIFO to the weighted-average method. Under the weighted-average method,

Dima020 [189]

Answer:

Two adjustments must be made to year 1's financial statements:

The income statement must be adjusted since net income increased because cost of goods sold decreased.
The balance sheet must be adjusted since retained earnings will increase because net income increased.

Explanation:

The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.

6 0

3 years ago

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price

user100 [1]

Answer: 4.10%

Explanation:

Solve for the current rate being used using the RATE function on Excel.

Number of periods = 15

Payment = 1,000 * 5% = 50

Present value = Current market price - floatation costs = 900 - 25 = 875

Future value = 1,000 face value

The result will be:

= 6.31%

If tax is 35%, after-tax cost is:

= 6.31% * (1 - 35%)

= 4.10%

8 0

3 years ago

Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co

KATRIN_1 [288]

Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

$48,500+29,500=78,000$

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

$44,000-39,000=5,000$

On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.

Therefore, mortgage debt issues are equivalent to:

$5,000+19,500=24,500$

We add the contributed capital plus capital increases plus mortgage debt issues:

$78,000+24,500=102,500$

4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

$102,500-44,000=58,500$

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars Amount in $

Cash 9,500

+Adjusted basis of the 39,000

building

+50% profit sharing ratio 29,500

+Nonrecourse mortgage 5,000

less adjusted basis

+Remaining mortgage on 19,500

building

TOTAL 102,500

-Debt on building (44,000)

Outside tax basis 58,500

7 0

3 years ago