Answer:
Excludable from Burr's gross estate
Explanation:
Buy-sell" agreements are excludable from a decedent's estate provided the agreement:
1) is a bona fide business agreement;
2) is not a device to transfer property to the decedents family for less than full and adequate consideration; and
3) has terms similar to those entered into by persons in arm's length transactions.
As the "buy-sell" in this case meets the requirements for being excludable from the decedent's estate, the insurance proceeds will be excluded from Burr's estate upon Burr's death.
Answer:
The correct answer are the option C and D: Outline a realistic start-up budget and Present an operating budget that project costs.
Explanation:
To begin with, due to the fact that the principal matter is a financial analysis then the person must focus on a realistic start up budget and also in projecting costs in an operating budget because those will be the most important matters when it comes to financial terms, the costs and all that they represent at the time of starting the business and the production. Therefore that in terms of finances, the costs of the future business is the matter that the person will have to have in mind at first.
Answer:
break-even level of revenues increases from $2,890,625 to $3,500,000
Explanation:
Break even point is the level of sales at which the company makes neither a Profit nor a loss.
Break -even Sales revenue = Fixed Cost / Contribution Margin Ratio
<u>Old Break -even Sales revenue </u>
Break -even Sales revenue = ( $800,000 + $125,000)/(1.00-0.68)
= $925,000/ 0.32
= $2,890,625
<u>Old Break -even Sales revenue </u>
Break -even Sales revenue = ( $600,000 + $100,000)/(1.00-0.80)
= $700,000/ 0.20
= $3,500,000
Answer:
Explanation:
The first step is to determine the income to be carried forward:
The diagram is attached.
Therefore, the amount of consolidated retained earnings is (a.) $235,000
Answer:
Activity expected duration = 2.333
Explanation:
Given:
Optimistic (a) = 1
Most likely (m) = 2
Pessimistic (b) = 5
Activity’s expected duration = ?
Computation of Activity expected duration:
Activity expected duration = [1 + 4(2) + 5] / 6
Activity expected duration = [1 + 8 + 5] / 6
Activity expected duration = [14] / 6
Activity expected duration = 2.333