1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
prisoha [69]
3 years ago
13

Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $11,800 to the attorney who drew up the

articles of incorporation and $5,700 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $17,500 organizational costs on its first tax return
Business
1 answer:
Step2247 [10]3 years ago
4 0

Answer: $5416.64

Explanation:

Based on the information given, $5000 will be deducted from its organizational cost of $17500, and we'll have $12500. Then, the capitalized cost over 6 months that's 180 days will be:

= Non deductible cost / 180 months

= $12500 / 180

= $69.44 per month

Since Ajax Inc began operation in July, the ammortization will be:

= $69.44 × 6 months

= $416.64

The amount that Ajax can deduct from its $17,500 organizational costs on its first tax return will be:

= $5000 + $416.64

= $5416.64

You might be interested in
This is a growth strategy with a goal to take customers away from competitors.
vitfil [10]

Answer:

market penetration

Explanation:

As market is already created but the share of the company needs to be higher.

8 0
3 years ago
Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts
Genrish500 [490]

Answer:

Effect Corporate Change

Explanation:

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to effect corporate change. Change is one of the important and most difficult process for any organization. It needs to be carried out slowly as it has been manifested in the above given statement as well. Employees need to be given training, promotions, rewards and bonuses, they must be listened, their concerns should be addressed in order to make change process easy and smooth.

8 0
3 years ago
A company issues a​ ten-year bond at par with a coupon rate of 6.4​% paid​ semi-annually. The YTM at the beginning of the third
sladkih [1.3K]

Answer:

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

Explanation:

The current price of the bond can be calculated by using the formula:

current  \ price \  of \  the \ bond= ( coupon \times  \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}

current  \ price \  of \  the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times  \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})

current  \ price \  of \  the \ bond=  \$32 \times $11.19 + \$490.70

current  \ price \  of \  the \ bond=  \$358.08+ \$490.70

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

5 0
3 years ago
Common stock​ value: Constant growth The common stock of Barr Labs​ Inc., trades for ​$120 per share. Investors expect the compa
BlackZzzverrR [31]

Answer:

Dividend growth rate anticipated = 14.66%

Explanation:

Using dividend growth model we have

P{_0} = \frac{D{_1}}{K{_e} - g}

Where P{_0} = Current market price = $120

D{_1} = Dividend to be paid at year end or next year = $1.37

K{_e} = Expected return on equity = 15.8%

g = Expected growth rate

Now putting values we have

$120 = \frac{1.37}{0.158 - g}

0.158 - g = \frac{1.37}{120} = 0.0114

0.158 - 0.0114 = g

0.1466 = g = 14.66%

5 0
3 years ago
The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activ
Effectus [21]

Answer:

<em>16,800 dollars.</em>

Explanation:

<em>Overhead rate predetermined at availability. </em>

= Approximate overhead processing times / Capacity machine hours.

= $33,600 / 24,000.

= $1.4 per hour on machine.

<em>Cost of Resources not used. </em>

= (Machine hours at capacity - Actual machine hours) x Overhead speed estimated at load.

= ( 24,000 - 12,000) x $1.4.

= 16,800 dollars.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Identify and briefly discuss three criticisms of beta as used in the capital asset pricing model
    12·1 answer
  • The institution-based view driving alliances and acquisitions focuses on _____ concerns.
    13·1 answer
  • Assume that demand for a commodity is represented by the equation P=10−0.2Qd. Supply is represented by the equation P=2+0.2Qs, w
    11·1 answer
  • Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations dis
    5·1 answer
  • What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect metho
    15·1 answer
  • Clarence is visiting his friends in Germany. Which currency will he use to pay for souvenirs?
    15·2 answers
  • The duty of all businesses to provide a significant net positive contribution to the general good of customers, employees, the c
    8·1 answer
  • Strategic use of white space improves document readability. Which of the following techniques employ white space?
    10·1 answer
  • A new transfer student joins a residential student organization on their new campus. She arrives at their first meeting and sits
    11·1 answer
  • In a given market, the market equilibrium price and quantity are $120 and 5 million units, respectively. At a price of $100, 4.8
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!