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2 years ago

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

Business

1 answer:

shutvik [7]2 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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You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will

zepelin [54]

Answer:

financing 62,400 dollars

Monthly Payment $ 465.48

Total Interest 21,386.4

Rounding to nearest $ 100

Additional $$ 34.52

We save up to 16 payments and $2,136.4 in interest.

By-weekly payment $232.60

Total Interest saved $ 194.4

Explanation:

78,000 less 20% down-payment: 62,400

Monthly Payment

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $62,400.00

time 180

rate 0.0034375

$62400 \div \frac{1-(1+0.0034375)^{-180} }{0.0034375} = C\\$

C $ 465.484

Total Interest

quota times time less principal

$ 465.48 x 180 - 62,400 = 21,386.4

$ 500 - $ 465.48 = $ 34.52

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $500.00

time n

rate 0.0034375

PV $62,400.0000

$500 \times \frac{1-(1+0.0034375)^{-n} }{0.0034375} = 62400\\$

$(1+0.0034375)^{-n}= 1-\frac{62400\times0.0034375}{500}$

$(1+0.0034375)^{-n}= 0.571$

We now use logaritmics properties to solve for n

$-n= \frac{log0.571}{log(1+0.0034375)$

-163.2956066

180 - 164 = 16 payments

Total Interst 500 x 163.30 - 62,400 = 19,250

Interest savings 21,386.4 - 19,250 = 2,136.4

If payment are bi-weekly:

then payments will be:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $62,400.00

time 360

rate 0.00171875

$62400 \div \frac{1-(1+0.00171875)^{-360} }{0.00171875} = C\\$

C $ 232.598

And total Interest:

232.2 x 360 - 62,400 = 21,192

Difference 21,386.4 - 21,192 = $ 194.4

6 0

3 years ago

How are prices determined in a free market economy

professor190 [17]

If it’s free then I don’t think they need to determine the price bc it’s free

5 0

2 years ago

Skysong, Inc. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 250 $5 $ 1,250 12 Purchas

ziro4ka [17]

Answer:

Weighted average unit cost = $8.78

Explanation:

<em>The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received. or every new batch received the average cost per unit is re-computed by dividing the total value of stock by the outstanding number of units.</em>

The explanation is completed using calculation below:

Total value of stock = (250× $5) + (500×$9) + (375 × 11) = $9,875

Total units of stock = 250 + 500 + 375 = 1,125 units

Weighted average unit cost = Total value of stock / total units of stock

= $9875 / 1125 units = $8.78

Weighted average unit cost = $8.78

5 0

3 years ago

Definition: created in 1935 under the new deal, it aimed to stimulate the economy during the great depression and preserve the s

FinnZ [79.3K]

WPA is the answer to the question

3 0

3 years ago

On July 1, 2021, Markwell Company acquired equipment. Markwell paid $185,000 in cash on July 1, 2021, and signed a $740,000 noni

Alenkasestr [34]

Answer:

c. Debit: Discount on notes payable, $41,884.

Explanation:

The journal entry is shown below:

Equipment $883,116

Discount on Notes payable $41,884 ($740,000 - $698,116)

To Notes payable $740,000

To Cash $185,000

(Being the amount paid in cash and note payable is recorded)

Working note

= Note payable amount × PVF factor at 6% for one year

= $740,000 × 0.94340

= $698,116

For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets

7 0

3 years ago