Answer:
a.$30,000
b.The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Explanation:
a. Calculation of what is Shawn’s realized gain or loss and the basis of the apartment building
Since Shawn tend to received the apartment building which has a Fair Market Value of $320,000 in exchange of his $350,000 worth of factory , this means he had a lost of $30,000 which is calculated as ($320,000-$350,000) which can therefore be deferred
b. The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Answer:
Gain and loss accounts
Explanation:
Gain and loss accounts are a form of temporary accounts that are utilized to gather combined sales and purchases that has an effect on the profit or loss of business activities over a given period, which is typically in a year. For example, the loss on property sold account.
Hence, in this situation, the correct answer to the question is known to be a GAIN and LOSS ACCOUNT.
Answer and Explanation:
The weighted-average accumulated expenditure method will be used to compute the interest amount to be capitalized for a qualifying asset. Then the expenditure incurred during a particular month shall be multiplied by that month's outstanding and the sum is later divided over the total months in a given period.
(Check the attachment below for the computation of Whispering’s weighted-average accumulated expenditures for interest capitalization purposes.)
Therefore, Whispering's weighted-average accumulated expenditures for interest capitalization purposes is $2,334,000.
To arrive at operating cash flows, you should start with net income, adding non-cash items and then add or subtract changes in working capital.
A measure of the amount of money made by a company's regular business operations is called operating cash flow (OCF). Operating cash flow shows if a business can produce enough positive cash flow to support and expand its operations; if not, it may need outside finance for capital growth.
An essential metric for assessing the financial performance of a company's main business operations is operating cash flow.
A cash flow statement's opening part, which also contains cash from investing and financing activities, shows operating cash flow.
The indirect method and the direct approach are both ways to show operating cash flow on a cash flow statement.
Learn more about operating cash flow here:
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Answer:
The firm's weighted average cost of capital if the tax rate is 34 percent is 12.69%
Explanation:
total assets = common stock value + preferred stock value + debt
= 23000*57 + 6000*48 + 350000*102%
= 1956000
WACC
= (common stock value/total assets) * common stock rate of return
+ (preferred stock value/total assets) * preferred stock rate of return
+ (debt value/total assets) * yield to maturity of debt * (1-tax rate)
= (1311000/1956000)*14.2% + (288000/1956000)*7% + (357000/1956000)*8.49*(1 - 34%)
= 12.69%
Therefore, The firm's weighted average cost of capital if the tax rate is 34 percent is 12.69%
