Answer: Please refer to Explanation
Explanation:
When recording Equipment here the value of the shares at current value should be used and not the cost of the equipment.
DR Equipment $162,250
CR Investment in Pharaoh Company $137,500
CR Gain on Exchange $24,750
(To record Exchange of shares for Equipment)
Workings.
Investment in Pharaoh Company.
= 2,750 shares * $50(purchase price)
= $137,500
Gain on Exchange
= 2,750 shares * (Market Price - Purchase Price)
= 2,750 shares * ( 59 - 50)
= $24,750
Equipment.
= Investment in Pharoah Company + Gain on Exchange
= 137,500 + 24,750
= $162,250
A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. The profit margin and total asset turnover ratio are 13.3% each. 1.5.
There are two methods that can be used to calculate return on assets. The first method is to divide the company's net income by its average total assets. The second method is to multiply the company's net profit margin by sales.
Return on assets is calculated by dividing a company's after-tax earnings by total assets. The balance sheet total corresponds to the company's total equity and liabilities. This value can be found on the company's balance sheet.
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Answer:
false
Explanation:
thanks to expanded communications and the relaxation of many legal barriers, investors can buy securities from companies anywhere in the world.
Answer:
As in her worthless note,Sandy has a zero adjusted basis. Her bad debt deduction is Nil according to Section 166 (b).
Section 166(g)(1) states that her capital loss realized on the deemed sale of this stoke is also nil because of zero adjusted basis in her worthless stock.
According to Reg. Sec.1.1366-2(a)(5) if all of her stock is disposed by an S corporation shareholder and loss carryforward attributable to the Section 1366 (d) basis. Limitaitons are permanently disaalowed.
Hence, her $7,400 ordinary loss carryforward can never be deducted by Sandy.
Sandy has no 2012 tax consequences from worthlessness of her Lindlee investments
Answer:
$165
Explanation:
The working capital of organization is the difference between the current assets and the current liabilities of the organization. It shows if a company has enough short term assets or asset that can be converted quickly to cash to settle obligations that will arise in the short term.
Working capital as at December 31, 2015
=$1,105 - $915
=$190
Working capital as at December 31, 2016
=$1,320 - $955
=$365
Change in working capital in 2016
= $365 - $190
= $165
