Answer:
A). The taxpayer's aunt.
Explanation:
Constructive ownership is demonstrated as the allocation of stock ownership from one to another taxpayer by the integrity of their relationship. For example, the parents own the stocks of their children constructively. As per the section (c) of constructive ownership under § 267, the party that cannot be a related part for constructive ownership purposes would be 'the aunt' of the taxpayer as she is not related to the taxpayer with blood either half or whole. Thus, she would not have any ownership right over the stock or shares and hence, <u>option C</u> is the correct answer.
Flexible budgeting will show a change in the total of what fixed costs, variable costs and what revenues should have been at the actual level of activity.
Flexible budgeting differs from static budgeting in that it includes a leeway in organizational budgets according to production or sales in a given period.
This type of budget is prepared at the end of the accounting period and is used for organizational control purposes, as it allows for unforeseen situations that may occur in the micro or macro environment.
Therefore, flexible budgeting is used as a control instrument that considers costs as variables based on defined estimates.
Its main advantage is its greater flexibility and ability to keep budgets up to date.
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Answer:
Ending inventory = $227
Cost of good sold = $1,333
Explanation:
Note: The data in the question are merged together and they are first sored before answering the question as follows:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 20 $55 $1,100
Sep. 8 Purchase <u>10 26 260 </u>
Total <u>30 $1,360</u>
The explanation to the answers are now as follows:
Weighted cost per unit = $1,360/30 = $45.3333
Ending inventory = (30 - 25) * $45.3333 = $227
Cost of good sold = 25 * $45.3333 = $1,333
Answer:
A
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-150,000
Cash flow each year from year 1 to 5 = $43,690
IRR = 14%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
