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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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Hot Products owns a patent for a fan motor that it uses in ceiling fans. Allied Electric uses a fan motor that is identical to H

noname [10]

Answer:

The answer is: YES

Explanation:

Hot Products is the legitimate owner of the patent for the manufacturing and commercialization of that fan motor. If Allied Electric wants to produce and use that specific fan motor they must come to a manufacturing licence agreement with Hot Products even thought the fan motor is used differently (one in ceiling fans and the other in air conditioners).

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4 years ago

Tasty Tangerine is currently selling 50,000 boxes for $25 per box. Variable cost per box is $17 and fixed costs total $260,000.

prisoha [69]

Based on the changes,Tasty Tangerine's net income for the year will decrease by $16,000 from $140,000 to $124,000.

Data and Calculations:

Current sales unit = 50,000 boxes

Selling price per box = $25

Variable cost per box = $17

Total Fixed costs = $260,000

Contribution margin = $8 ($25 - $17)

Net income based on current sales plan = $140,000 ($8 x 50,000 - $260,000)

New Plan's sales units = 74,000 boxes

Selling price per box = $23 ($25 - $2)

Variable cost per box = $17

Total Fixed costs = $320,000 ($260,000 + $60,000)

Contribution margin per box = $6 ($23 - $17)

Net income based on new plan = $124,000 ($6 x 74,000 - $320,000)

Thus, the changes will cause Tasty's net income for the year to decrease by $16,000.

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3 years ago

Contact Process: What safety, cost, or other considerations prevent most industrial applications from using the most ideal condi

Margaret [11]

So here is the answer of the given question above:
In terms of economics, Harber's process takes a huge amount of capital. Initially, the process demands for a very high pressure and this is very expensive to produce. Second, the company would need to establish extremely sturdy pipes and containment vessels to endure the very high pressure, in order to produce this required condition; the building process is very costly as well as the maintenance. Hope this answer helps.

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4 years ago

What was Ottaviano Petrucci known for?

zhuklara [117]

Firat book of sheet music printed from movable type

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3 years ago

Read 2 more answers

Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.

ella [17]

Answer: A cash sale

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.

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3 years ago