Answer:
The answer is: $4,522
Explanation:
Since Stanford doesn't operate in the restaurant business and doesn't buy the restaurant, he cannot deduct any amount for investigation costs relating to the restaurant.
Stanford doesn't operate in the bakery business but he bought the bakery, so he can deduct up to $5,000 (before amortization) for investigation costs related to the bakery. But those $5,000 are reduced by every dollar he spent over $50,000, so he can only deduct $4,000 [= $5,000 - ($51,000 - $50,000)].
The remaining $47,000 (= $51,000 - $4,000) can be amortized over 180 months, which equals $261 per month (= $47,000 / 180 months).
Since he bought the restaurant in November, he can deduct two months: $261 per month x 2 months = $522
So his total deduction for investigation expenses is = $4,000 + $522 = $4,522
Answer:
Centralize decision making
Explanation:
From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.
Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.
Answer:
Debt
Explanation:
Debt is the lowest cost source of financing because the <em>interest</em> return given to holders of debt has a <em>tax shield</em> (tax deductible) that is provided by the Section 11j of the Income tax Act.
The other sources of finance give a return in form of <em>dividends</em>. Dividends are are not tax deductible hence they attract a huge cost.
Answer:
The Matching Principle
Explanation:
The Matching Principle of accounting holds that revenues should be matched with expenses. Hence the name.
This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.
For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.
Answer:
a) II only
Explanation:
Bonita is planning to join the new company because there is an availability of getting a loan from the company. Unlike her previous employer, the new employer has different packages for employees such as retirement plans as well as the available of loans for employee. Therefore, it can be concluded that the correct option is a.
