1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gayaneshka [121]
3 years ago
13

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% i

nstallment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?
Business
1 answer:
AlexFokin [52]3 years ago
5 0

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

You might be interested in
Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $17,560,000 Net
Nataliya [291]

Answer:

24.91%

Explanation:

The formula for return on investment is given as;

Net operating income / Average operating assets

= $1,071,160 / $4,300,000

= 24.91%

Therefore, return on investment is 24.91%.

5 0
3 years ago
What is the definition of excellent customer service?
stiks02 [169]
Good customer service means having thorough  knowledge and having a positive attitude.
7 0
3 years ago
Feel great. smell great," goes the warm, lilting theme song of a television ad for perfume, as the model dances through a field
ira [324]

The likely reason as to why this ad is most likely to work is because of emotional appeals by which they are likely to work well with the social identity products that could be describe and read from the scenario above.

6 0
3 years ago
What are some factors that would influence supply? Explain
lakkis [162]

Answer:

Some of the factors that influence the supply of a product are described as follows:

i. Price: ...

ii. Cost of Production:  

iii. Natural Conditions:  

iv. Technology:  

v. Transport Conditions:  

vi. Factor Prices and their Availability:  

vii. Government's Policies:  

viii. Prices of Related Goods

<h2>Please mark me as brainliest</h2>
6 0
3 years ago
is the sum of all the values that customers exchange for the benefits of having or using a product or service.
snow_tiger [21]

Price. It is the sum of all values that buyers exchange for the benefits of having or using a good or service. can be defined very narrowly as the amount of money charged for a product or a service. However, the price is really more than that.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Explain the difference between conflict and competition.
    12·1 answer
  • Heidi comes from an upper-middle-class family, and after high school she went through a period of exploration. She spent some ti
    8·1 answer
  • The manager of ProduceBuddy is interested in asking consumers what they think about the store's new layout and expanded produce
    8·1 answer
  • Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explan
    14·1 answer
  • If the MB of polluting increased, then what would happen to the optimal level of pollution? Multiple Choice Print Unsure Decreas
    12·1 answer
  • Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per uni
    15·1 answer
  • PLZZZZ HELPP FASST
    15·1 answer
  • A manager spent 5 hours of his day in meetings. If he said that he spent 70% of his day, how many total hours did he work?
    15·1 answer
  • Rodriguez Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly website. The website allows customers to upl
    12·1 answer
  • The Ryan Corporation uses the composite method and its composite rate is 7.5% per year. The entry that should be made when plant
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!