Answer:
a. its greater flexibility
Explanation:
A sole proprietorship is A form of legal business structure owned by only one person. The liabilities of the owner is unlimited. It is usually flexible as decisions are made and approved by the owner.
A sole proprietorship doesn't usually have perpetual existence. It usually ends when the owner dies. It is not easy to transfer shares to other family members.
A sole proprietorship gives the owner the opportunity to be involved in the day to day running of the business.
I hope my answer helps you.
Answer:
$1,260,000
Explanation:
Given that,
Annual depreciation expense = $3.6 million
Marginal corporate tax rate = 35%
Average corporate tax rate = 30%
The reason to use marginal tax shield is that the firm would save additional amount it would have paid in taxes.
Value of the depreciation tax shield:
= Marginal corporate tax rate × Annual depreciation expense
= 35% × $3,600,000
= $1,260,000
Therefore, the value of the depreciation tax shield on the company's new project is $1,260,000.
Answer: $74,000
Explanation:
The Average Investment refers to the average cash invested into a particular project and is useful in calculating the rate of return. The simple formula is to add the beginning value of the asset to its ending value and divide this by 2.
The ending value in this case would be the salvage value;
Average Investment = 
= 
= $74,000
Answer:
Explanation:
The journal entry to record the expenditure account is shown below:
Postage A/c Dr $100
Business lunches A/c Dr $150
Delivery fees A/c Dr $75
Office supplies /c Dr $25
To Petty cash A/c $350
(Being expenditure is recorded)
So, the debit petty cash account would not be considered as it is credited while passing the journal entry.