Answer:
Logan Horse Ranch
The most accurate is:
e. None of the above are correct
Explanation:
Logan's payment to his brother, Luke, of $500 per hour, is not a reasonable business expense that can be deductible. Surely, $500 per hour is not a going rate for cleaning the horse stalls per hour. With Lucy doing grocery shopping for Logan, it does not resonate like an ordinary and necessary expense for the business. Therefore, options A to D are not correct. This leaves only option E as the most accurate.
Answer:
Therefore, the Beta of Portfolio AC is 1.10
Explanation:
In order to calculate the Beta of Portfolio AC we would have to make the following calculation of the following formula according to the given data:
beta of Portfolio AC is given as=80%*1.0+20%*1.5
beta of Portfolio AC is given as=0.8+0.3
beta of Portfolio AC is given as=1.10
Therefore, the Beta of Portfolio AC is 1.10
Answer:
The value after seven years from now is $231,216.29
Explanation:
The computation of the expected value would be seven years from now is shown below:
Here we use the future value formula i.e. shown below:
Future value = Present value × (1 + interest rate)^number of years
= $188,000 × (1 + 0.03)^7
= $188,000 × (1.03)^7
= $231,216.29
Hence, the value after seven years from now is $231,216.29
Answer: May enable management to manipulate net income
Explanation:
The Specific Identification method does in fact allow for some manipulation most especially when there are items that are identical but yet are not of the same cost.
To most customers, the items will be the same and therefore the retailer or management could just report selling an item of higher cost in order to lower paper profit and by extension net income.
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