Answer:
The total monthly payments that are deductible by Duron are:
$1,200 each month for the next 10 years.
Explanation:
According to the IRS rules, if Duron pays his ex partner payments each month which are not documented by the court, the money is not tax deductible. Therefore, it is beneficial for Duron to receive a court order to pay the additional alimony if Duron plans on enjoying a tax deduction for the additional spousal support of $200.
Answer:
b. takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
Explanation:
Vertical disintegration occurs when a company takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
A common or popular example of vertical disintegration is Hollywood because it comprises of specialized business firms that are saddled with the responsibility of performing specific tasks or services such as creating movie trailers, posters, editing, sound effects, special effects, lighting, etc.
Generally, vertical disintegration help business firms or organizations to share risk associated with doing business among themselves.
I would think the answer is C.
Answer:
Cost of asset less expected residual value
/Expected useful life (years
Explanation:
Where the depreciable amount is charged in equal amounts to each reporting period over the expected useful life of the asset, this method of calculating depreciation is known as straight line method.
The yearly percentage of cost lost through accrued depreciation in straight line method is found by following formula:
Cost of asset less expected residual value
/Expected useful life (years)
Answer:
option (B) $10,500
Explanation:
Data provided in the question:
Cost = $30,000
Useful life = 5 years
Salvage value = 0
Tax rate = 35%
Expected net cash inflow before depreciation and taxes = $20,000 per year
Now,
The total tax shield created by depreciation over the life of project
= Tax rate × ( Amount of depreciation over the life of project )
= 35% × ( Cost - Salvage value )
= 0.35 × ( $30,000 - 0 )
= $10,500
Hence,
The answer is option (B) $10,500
