<span>A collision coverage type of insurance only the covers the
cost that is incurred due to damage to your car. It does not include the cost
for the other car. Therefore you will have to pay the total of $1,100</span>
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
The answer is <span>Kiichiro Toyoda</span>
Answer:
$2,198,000
Explanation:
The computation of the value of the capital in excess of par account after the dividend is shown below:
Number of shares of stock outstanding = 42,000 shares
Stock dividend percentage = 50%
Now the new shares would be
= 42,000 × 50%
= 21,000 shares
Capital in excess of par value would be
= $41 - $1
= $40
For 21,000 shares, the paid in capital in excess is
= 21,000 shares × $40
= $840,000
And, the capital in excess as per the balance sheet is $1,358,000
Now the value of the capital in excess of par after the dividend is
= $1,358,000 + $840,000
= $2,198,000
