Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
- Partnership or C corporation with less than $5 million in total sales revenue per year
- Sole proprietorship or S corporation with less than $1 million in total sales revenue
- Cannot be a publicly traded corporation
- Personal service businesses with more than 95% of revenue specifically related to services.
- Family owned farms with total annual sales revenue less than $25 million.
Answer:
12%
Explanation:
Initial investment =$5,000.00
Value of stock with 10%=$10,000*(1+10%)=$11,000
The amount repayable to the broker after one year is the amount borrowed plus interest of 8%
Amount borrowed plus interest= $5,000+( $5,000 *8%)
Amount borrowed plus interest=$5,400
Rate of return=(Value of stock with 10%-Amount borrowed plus interest-equity fund)/amount borrowed
Rate of return=($11,000-$5,400-$5000)/$5,000=12%
