Answer:
Sissie must report both operations separately, even though the gain in one of them does offset the loss on the other:
- selling of equipment A: reported gain (increased ordinary income) of $22,510 ($60,000 - $37,490)
- selling of equipment B: reported ordinary loss of $14,490 ($23,000 - $37,490)
The effect of both transactions is a net gain of $8,020 that will increase Sissie's ordinary income.
Explanation:
Both assets are § 1231 assets, and § 1245 allows deprecation recapture on the sale of equipment A, so the gain must be considered ordinary income. The loss on the sale of equipment B is a § 1231 loss which must be treated as an ordinary loss.
Answer:
5.25
Explanation:
Inventory turnover = Cost of goods sold / Average inventory
Cost of goods sold = $1,050,000
Average inventory = (Beginning Inventory + Ending Inventory) /2
Average inventory = ($160,000 + $240,000) / 2 = $200,000
Next, use the average inventory value in the turnover formula above;
Inventory turnover = 1,050,000 / 200,000
= 5.25
Therefore, Everett's inventory turnover in 2020 is 5.25 times.
Answer:
D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.
Answer: Option D
Explanation: In simple words, direct finance refers to the situation when the borrowers borrows money directly from lenders, and do not consider taking help from any intermediary. In other words, when the issuers in the financial market sell their securities directly to the general investors then such financing is termed as direct financing.
This financing is cheaper and benefits both he lender and the borrower. Hence we can conclude that the correct option is D.
Answer: $20,000
Explanation:
Bonds are to be carried in the books at their fair value which is their market value. That value is $20,000 in this instance and so Dyckman Dealers will have to record the bonds at that $20,000 value.
Investment analysis are not a basis for recording bond prices. They are simply a basis for making investment decisions. For instance, because they believe that the bond is overvalued, they can benefit from this by short selling the bond and waiting for it to drop in price.
