Answer: Derivative security
Explanation:
Derivative security is referred to as the security that provides a payoff which depends on the values of other assets.
A derivative security is referred to as the financial instrument whereby the value depends on the value of another asset. There are different types of derivatives such as options, swaps, futures, and forwards. Example of derivative security is convertible bond.
Inventory cost is higher than all other options. If there are many small players at the customer stage, each requiring small amount of the product at a time.
Answer:
D. Primary
Explanation:
The newly issued securities are first sold to the investors of the primary market .
The primary market id responsible for issuing the securities for the exchange of the company , or other groups .
The primary market are run by the underwriting groups which includes the investment banks .
Hence , from the information of the question , the correct term is ( d. ) Primary market .
Answer:
A deferred tax liability will be reported on the balance sheet
b) trademark
as longterm assets refers to those assets that will not become cash within a one-year period
Explanation:
As the accounting makes the depreciaiton of the asset among 8 years
while the MACRS (depreciaiton for tax purposes) does it in 5 years
the company will pay lower income taxes now but, higher in the future
creating a tax liability as the tax relief occurs now.
Calculations:
Account Depreciation Expense
(cost - salvage value )/ useful life =
(130,000 - 10,000)/ 8 years = 8,000
Tax-purpose depreciation expense
130,000 x 20% = 26,000
There is a tax difference of (26,000 - 8,000) x corporate income tax
Foster and Johnston evenly split the cost of bat removal
Answer: Option (B) is correct
<u>Explanation:</u>
Even splitting of bat removal cost will divide the burden equally between Foster and Johnston. Since the cost of bat removal is very high. If The burden falls on a single town then it will take it as a burden and will not contribute.
But equal participation from both the towns will ease the task and matter will be solved quickly. This will help in the removal of bats otherwise this matter will not be resolved.
