Answer:
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Explanation:
Answer:
Follows are the solution to the given points:
Explanation:
In point a:
It must allocate
for both the taxicab and
for the rest of the license, the client list, and the company name registered.
Its cost of intangible material could be amortized for 180 months starting in April.
is her amortization deduction.
She could also use Section 179 to decrease her taxable money to
but include her deduction.
Her taxable annual income is
.
In point b:
They must allocate
for the taxi and
for their licenses, the customer list as well as the business by interacting with people register. Its cost of the material could be depreciated for 180 months, starting in April.
is her amortization deduction.
The taxable income here 
Section 179 could be requested if another income is earned on the tax return (such as W-2 wages).
As all Section 179 is unpaid with other earned income, it is carried forward into the next year.
Answer:
The term Operating leverage refers to the degree to which a firm uses debt financing (or other types of fixed-cost financing) to fund its operations.
Explanation:
Operating leverage is a measure of how revenue growth translates into growth in operating income
Answer:
(C) The Firm's stock is overvalued and one should consider selling the stock
Explanation:
Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.
Price Earnings Ratio = 
A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.
This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.
Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.