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2 years ago

Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset.

Business

1 answer:

aniked [119]2 years ago

8 0

Answer:

There are many ways a taxpayer can trigger a realization event. She can trigger it through a sale or trade by receiving a value greater than the disposed asset. She can also trigger a realization event by making a gift to charity. Other ways include disposal, for example, to a landfill and destruction through natural disaster. In the latter cases, there is a loss to the taxpayer. With a natural disaster, the taxpayer can only obtain a realization gain if reimbursed by the insurance company.

Explanation:

A realization event happens when there is a sale or a disposal of an asset or a discharge from a liability. There is usually an increase in the value realized from the disposal, which is greater than the asset's value before disposal. It also happens when the taxpayer receives a relief from a liability or completes a profitable transaction.

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Sam's Pizza is considering a new store location. For accounting purposes, fixed operating costs for a store are $245,000 a year,

Yuki888 [10]

Answer:

33,793 pizzas

Explanation:

The annual break-even sales level for the number of pizzas sold in the location is computed using the break-even sales units formula below:

break-even sales=fixed costs/contribution margin per pizza

fixed costs=$245,000

contribution margin per pizza=selling price-variable cost

selling price=$12.50

variable cost=selling price*42%

variable cost=$12.50*42%

variable cost=$5.25

contribution margin per pizza=$12.50-$5.25 =$7.25

break-even sales=$245,000/$7.25 = 33,793 pizzas

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2 years ago

Cynthia works as a salesperson at an apparel showroom. A week ago, she met a customer who stated that a particular dress was qui

olasank [31]

Answer:

Assumptive close

Explanation:

Discount means cut off price

$\boxed{\sf Discount=Sold\:Price-Cost\!Price}$

Or simply

$\\ \sf\longmapsto Discount=S.P-C.P$

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2 years ago

Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to gr

Tpy6a [65]

The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds by purchasing new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:

Ke = (DIV 1 / Po) + g

Ke = cost of external equity

DIV 1 = dividend to be paid next year

Po = market price of share

g = growth rate

In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.

Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.

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2 years ago

If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the:___________. A. frictional une

professor190 [17]

Answer:

C. cyclical unemployment rate is 4 percent.

Explanation:

The cyclical unemployment is associated with business cycles of recessions and expansions. The actual unemployment rate is given by the natural rate of unemployment added to the cyclical unemployment rate. In this case, the cyclical unemployment rate is:

$C = 9\%-5\% = 4\%$