Answer:
$6,000 LTCG
Explanation:
Calculation to determine the amount and character of the gain or loss that Monte recognizes
Using this formula
Recognized gain or loss =Amount realized -Basis
Let plug in the formula
Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)
Recognized gain or loss=$54,000-$48,000
Recognized gain or loss=$6,000 LTCG
Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG
Answer:
d) Purchasing $18,000 (000) worth of plant and equipment
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
Explanation:
<em>Missing information:</em>
a) A $5 dividend
b) Liquidate the entire inventory
c) Retiring the oldest bond
d) Purchasing $18,000 (000) worth of plant and equipment
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A) dividends would not be the cause as they are determinated by the company they can chose not to declare it.
B) lquidate the inventory means selling and not replenish. This generates cash it doesn't use cash
C) re-rolling the debt (by issuing new bonds) is a course of action planned and that in hte end will not affect the cash of the company as will be paying the bonds and receiving from the new bonds thus the changes in cash would be controlled.
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
Knowledge that is taught as part of a course of study.
The price elasticity of supply is given by a similar formula: If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Answer:
Depreciation expense on third year is $2,400
Explanation:
First, we must compute the depreciation expense for the first 2 years.
($18,000 - 2,000)/5years = $3,200 depreciation expense per year.
Second, let’s compute the net book value before the adjustment.
$3,200 x 2 years = $6,400 (total depreciation for 2 years)
$18,000 - $6,400 = $11,600 (Net book value before adjustment)
Finally we can now compute the Depreciation expense on the third year.
($11,600 - $2,000) / 3+1
$9,600/4 = $2,400 (new depreciation expense on third year)
