In Ghana. In the late spring 1970 Steve Reich went to Ghana to think about drumming. With a travel concede from the Special Projects division of the Institute of International Education, he advanced toward Accra keeping in mind the end goal to think about with Gideon Alorworye, the inhabitant ace drummer of the Ghana Dance Ensemble.
Answer: The following would the accountant do related to the compilation engagement: <u><em>Issue a compilation report even though review procedures were performed on the engagement.</em></u>
Under Statements of Standards for Accounting and Review Services (SSARS), the accountant decided to perform some analytical procedures.
<u><em>Therefore, the correct option is (d)</em></u>
When a firm uses price descrimination, people with an inelastic demand curve will pay higher prices for the item relative to those purchasing the product and have an elastic demand curve
Answer: No deduction can be claimed this year.
Explanation:
The options to the question are:
a. No deduction can be claimed this year.
b. $5.50 million
c. $2,500,000
d. $5.50 million only if the professional golf tournament is played before April 15.
Answer:
Since Ajax Computer company is an accrual method calender-year tax payer, the computer company would recognize the expenses only when such expenses are incurred and not at the time that cash is being paid for the the expenses
Ajax computer company already paid in advance for both advertisements the following year even though the advertisement eanst taking place that year. Therefore, the payments will not be considered to be an expense until advertisements has actually taken place. Because of this, Ajax cannot deduct the amounts paid for the advertisements next year and hence, no deduction will be claimed this year.
Answer and Explanation:
The computation is shown below:
Given that
EBIT = $40,000
Unlevered cost of capital = 14%
Cost of debt = 8%
tax rate = 35%
based on the above information,
(i)
(a) Current firm value is
Value of a perpetuity = FCFF ÷ Cost of capital
where,
cost of capital= cost of equity
= $40,000 ÷ 14%
= $285,714
b. And, the equity value would be $285,714 as the present debt is zero
