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3 years ago

Which of the following is not true of taxable asset purchases?

Business

1 answer:

shutvik [7]3 years ago

6 0

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.

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Early in 2017, Sheryl Crow Equipment Company sold 500 Rollomatics during 2017 at $6,000 each. During 2017, Crow spent $20,000 se

sertanlavr [38]

Answer:

Explanation:

Debit $ Credit$

a. Cash 3000000

Sales revennue (500*6000) 3000000

Warranty expenses 55000

Estimated warranty liability 55000

Estimated warranty liability 20000

Cash account 20000

b. Cash account 3000000

Sales revenue (500*6000- 56000) 2944000

Unearned warranty revenue 56000

Warranty expenses 20000

Cash account 20000

Unearned warranty revenue 20364

Warranty revenue (56000*20000/55000) 20364

3 0

3 years ago

How will this be displayed in a journal entry? T-account?

nydimaria [60]

Answer:

Date Account titles and description

20 No entry

26 No entry

31 No entry

Explanation:

1. Only $5,500 was submitted by Brett. No incorporated financial transaction

2. Owner not prepared to pay $5.500

3. Also Brett's provision for vehicle prices to be winterised will be $75.

4. Once Brett paid the salary ' under the table, ' the employee was willing to work $3 less per hour. Salary only fee not charged or due.

Thus, no log entry as well as T accounts have been completed.

8 0

3 years ago

Read 2 more answers

Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $12,000 Variable manuf

notsponge [240]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $12,000 Variable manufacturing costs $16.00 per square

Manufacturing cost= direct material + direct labor + manufacturing overhead

MC= 12,000 + 16* 50,000= $812,000

5 0

4 years ago

Suppose Stark Ltd. just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2

Sergeu [11.5K]

Answer:

Ans, The cost of the company’s cost of equity capital using the arithmetic average growth rate is 10.63% and using the geometric average of the growth rate is 10.60%

Explanation:

Hi, this is the equation we need to solve in order to find the company’s cost of equity capital.

$r=\frac{Dividend}{Price} +g$

As you can see, we almost have everything, the only problem here is "g", its growth rate, so let´s find "g" using the arithmetic average, but first, we need to find the growth rate for every period, the formula is

$g=\frac{(FinalDividend-PastDividend}{PastDividend}$

Therefore, we need to find 4 g´s, let´s call them g1, g2, g3 and g4:

$g1=\frac{(1.98-1.80)}{1.80} =0.10$

$g2=\frac{(2.05-1.98)}{1.98} =0.0354$

$g3=\frac{(2.16-2.05)}{2.05} =0.0537$

$g4=\frac{(2.24-2.16)}{2.16} =0.0370$

So the average is:

$Average(g)=\frac{0.10+0.0354+0.0537+0.0370}{4} =0.0565$

Therefore, the average growth rate is 5.65%

And the company’s cost of equity is:

$r=\frac{2.24}{45} +0.0565=0.1063$

so, if the average growth rate is found by using the arithmetic average is 10.63%.

Now, let´s find the geometric average

$g(average)=\sqrt[4]{(1+0.10)(1+0.0354)(1+0.0537)(1+0.0370)} -1=0.0562$

therefore, using the geometric average to find the growth rate, the company’s cost of equity is:

$r=\frac{2.24}{45} +0.0562=0.1060$

using the geometric average, the company’s cost of equity is 10.60%

Best of luck.

7 0

3 years ago

Wilson, an employee in a private-sector bank, has been suspected of stealing company funds and subsequently threatening and hara

sergiy2304 [10]

Answer: d. It should only use licensed, bonded examiners to conduct the test.

Explanation:

The purpose of the Employee Polygraph Protection Act is to ensure that employees get tested according to the highest levels of fairness and professionalism. To that end, only licensed examiners who have had training should be able to administer the test.

In addition to that, these examiners must sign a bond that they will be required to pay if it is shown that during the course of the exam, they engaged in practices that were unfairly or illegal towards the employee being examined.

6 0

3 years ago