Answer:
E&P $1,200,000 × 25%= $300,000 reduction
Crane Corporation would reduce its E & P in the amount of $300,000 as a result of the redemption.
This represents a 25% decrease in the amount of the E & P corresponding to the 25% stock redemption.
When a stock redemption results in sale or exchange treatment for the shareholder, the E & P account of a corporation is reduced in an amount not in excess of the ratable share of the E & P of the distributing corporation attributable to the stock redeemed.
As such, none of the expense of $13,000 of accounting and legal fees or other is deductible.
Answer: c. $3,960,000
Explanation:
Using the units-of-production method of depreciation, depreciation is done per unit used.
With a residual value of zero, the formula is;
= Cost x Millage used / Useful life mileage
= 55,000,000 x 36,000,000/500,000,000
= $3,960,000
Answer:
Complex
Explanation:
An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.
A matrix organizational structure is a type work structure where reporting relationships between employees are set up as a matrix rather than the conventional hierarchy approach.
This ultimately implies that, there are two (2) chains of command; employees have dual reporting relationships to both a project and functional manager.
Basically, the matrix organizational structure can be classified into three (3) categories, these are;
1. Weak matrix structure.
2. Balanced matrix structure.
3. Strong matrix structure.
One of the frequent complaint about a matrix organizational structure is that the exchange or dissemination of informations (communications) are complex because there exist a dual reporting relationships.
Answer:
Supply chain management.
Explanation:
Supply chain management (SCM) is the structuring and coordination of relationships and activities across firms to deliver value in an information and technology intensive global environment.
Is the management of flows between and among supply chain stages to maximize total supply chain profitability.
All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flow.
An intregated group of processes to source, make and deliver products.
Answer:
i. $40,000
ii. $410,000
iii. 180 days after July 12, 2015
Explanation:
i. The taxpayer's recognized gain is $40,000 ($450,000 -$410,000). The cost of the new office - the amount received from the insurance company.
ii. The taxpayer's basis for the new office is the cost of purchasing the new office building which is $410,000.
iii. Taxpayers can qualify for deferral treatment if they reinvest proceeds into a QOF (Qualified Opportunity Funds) within 180 days of receiving the gain. Because the new office was purchased on July 12, this is the applicable date.
