Answers
Answer: $7,000
Explanation:
Section 1245 property refers to property that either could depreciate or has depreciated or been amortized showing that it refers to both tangible and intangible assets.
If this asset is sold and there is a gain, the amount of the gain that is taxable as ordinary income is the amount up to the amount of depreciation.
As there has been a gain in this sale because the sales price is more than the purchase price and the Depreciation is $7,000, that is the amount that will be taxable as ordinary income.
Related Questions
Determine the total assets of Novak Corp. at December 31, 2020. Presented below is selected information related to Novak Corp. Accounts Payable $4,440 Salaries and Wages Expense $24,420 Cash 13,320 Notes Payable 37,000 Advertising Expense 8,880 Rent Expense 14,504 Service Revenue 79,920 Accounts Receivable 19,980 Equipment 42,920 Dividends 11,100
For a business to be successful and to fulfill itsmission and vision, it will need a strategy forbeating the competition called a competitiveadvantage. Competitive advantage comes from one(or a combination) of all of the following factorsEXCEPTaqualitybquantityCpricedserviceelocation
Because there are a significant number of "green-conscious" consumers, it is a legitimate market segment for many companies that have heretofore relied on more traditional segmentation such as demographics or psychographics. a. Trueb. False
Crystal Glassware Company issues $1,042,000 of its 14%, 10-year bonds at 97 on February 28,2019. The bonds pay interest on February 28 and August 31. Assume that Crystal uses thestraight-line method for amortization. What net amount will be reported for the bonds on theAugust 31, 2019 balance sheet?A) $1,010,740 B) $1,012,303 C) $1,009,177 D) $1,042,000
Answers
Answer:
Shopping in a traditional manner
If I had to buy, let’s say an iPad, I would visit the official store. First of all, I would take a closer look at the product, revising it carefully, if it feels right and if it meets my needs. Then I would ask for the price if they have a discount or any sale upcoming or payment plan. If everything meets my requirements I would buy the item. On the other hand, if there weren’t any official stores around the place I live in, I would visit three different department stores, preferably where they have the product of my interest displayed, also I would ask about the price and/or payment plan or discounts and availability. I must mention that cost is an important aspect to make a decision on where to buy the item. All of this process would take about 1 or 2 days at most.
Advantages
- -You can see, feel, check the product to dissipate any doubts, there are people willing to answer any question and help to make a better choice.
- Get the product at the same moment you are paying for it and if you want to you can use/wear it immediately.
Disadvantages
- If they are out of stock of the item of your interest, there is a chance you will have to wait a long time for it, although it could happen the store won’t have the product available again.
- The offers are not as wide as on the web sites.
Shopping on the web or via a mobile app
It is almost the same as shopping in a traditional manner, the greater differences are that there are more virtual places/shops online to compare prices and availability and sometimes they have great offers, because of the competition. Generally, the items are cheaper than a department store.
This process could take about a week, especially if you are waiting for a specific offer.
Advantages
- There are lots of options, lots of different online stores, that increase the chances to get a good offer or an item with better characteristics at the same price; if you don’t find availability in one web you can find it in another in no time.
- There is no need to leave your house or put on pause your busy schedule, as you will receive the item at your door.
Disadvantages
- You can’t check the product given they only display a few pictures of it and a brief description, there is no one to answer your doubts about the item, basically, the decision relies on your research and recommendations of the product.
- After making your purchase, you will have to wait a few days to receive your item at home or the workplace. Sometimes happens the store confuses your order sending a different product or other with different characteristics, resulting in having to return the item and wait days to get what you order in the first place.
Explanation:
Which did I prefer and why?
Considering the advances in technology, I prefer to shop online, there I can find what I'm looking for and of course, they have a great offers, too. Besides, with day to day occupations I barely have time to go to a department store, so is easier to access using a computer or an app on the smartphone.
Answers
Answer:
Explanation:
1. The journal entry for declaration of dividend is shown below:
Retained Earnings A/c Dr
= (8,600 million shares × $0.18 per share) = $1,548 million
To Dividend payable in cash $1,548 million
(Being dividend is declared)
2. No journal entry should be passed on the record date
3. The journal entry for payment of the cash dividend is shown below:
Cash dividend payable A/c Dr $1,548 million
To Cash $1,5480 million
(Being payment is made for cash dividend)
Final answer:
The journal entries made by BusinessSoftware Corp. to record the declaration and payment of the cash dividend for its 8,600 million shares involve debiting retained earnings and crediting dividends payable on the declaration date, and debiting dividends payable and crediting cash on the payment date.
Explanation:
The journal entries made by BusinessSoftware Corp. to record the declaration and payment of the cash dividend for its 8,600 million shares would be as follows:
- Declaration Date:
- Retained Earnings DR $1,548,000 (8,600 million shares x $0.18 per share)
- Dividends Payable CR $1,548,000
- Payment Date:
- Dividends Payable DR $1,548,000
- Cash CR $1,548,000
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Answers
Answer:
If the tax rate is 10% the better option is transaction 1 ($11,100 to 14,220)
IF the tax rate is 30% the better option is transaction 2 ($10,885 to 11,100)
Explanation:
We will compare the after tax cost for transaction two and check if it is better than 11,100 which will be the net cost for transaciton one
We must understad that the tax income deductible transacton provides a tax shield on the tax income, therefore his net effect is lower after considering taxes.
the rate will be think it as a discount to the pruchase price
at 10% income rate:
15,800 x ( 1 - 10% ) = 14,220
at 30% income rate
15,500 x ( 1 - 30% ) = 10,885
Answers
Answer:
Fixed Cost 216,640
Explanation:
The first step is calculate the difference between activity levels
This tell us 25 units generated cost for 154,000
154,000 / 25 = Variable Cost = 6,250
Now we use either the low or high values to solve for fixedcost:
total = variable + fixed
fixed = total - variable
HIGH
Total Cost 500,000
Variable 283,360 (6,250 x 46)
Fixed Cost 216,640
LOW
Total Cost 346,000
Variable 129,360 (6,250 x 21)
Fixed Cost 216,640
a. 6 pounds of fish per crate of olives
b. 2 pounds of fish per crate of olives
c. 8 pounds of fish per crate of olives
d. 18 pounds of fish per crate of olives
Answers
Answer:
Portugal has comparative advantage in producing olives.
Switzerland has comparative advantage in producing fish.
Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.
Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.
d. 18 pounds of fish per crate of olives.
Explanation:
Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.
Final answer:
Portugal has a comparative advantage in producing olives while Switzerland in producing fish. For mutual benefits, Portugal should receive more than 3 pounds of fish per crate of olives and Switzerland should receive more than 1/11 crate of olives per pound of fish. The optimal price of trade is a. 6 pounds of fish per crate of olives.
Explanation:
Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. In this case, Portugal has a comparative advantage in the production of olives given that its opportunity cost (3 pounds of fish) is lower than that of Switzerland's (11 pounds of fish). Consequently, Switzerland has a comparative advantage in the production of fish since by concentrating on producing fish, it gives up less in terms of olives than Portugal does.
For trade to be beneficial for both countries, Portugal should receive more than 3 pounds of fish for every crate of olives it exports to Switzerland - this is higher than the opportunity cost of producing olives domestically. Similarly, Switzerland should receive more than 1/11 crate of olives (since its opportunity cost is 11 pounds of fish per crate of olives) for every pound of fish it exports to Portugal.
Considering these conditions, from the available prices of trade, the option that allows both countries to gain from trade is a. 6 pounds of fish per crate of olives. This price is more than Portugal's opportunity cost of 3 and less than Switzerland's of 11.
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Answers
Answer:
$984,061.12
Explanation:
The computation of sales revenue under the worst-case scenario is shown below:-
Sales revenue under the worst-case scenario = Quantity sold × Price
= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)
= (1,600 - 48) × ($647 - 12.94)
= 1,552 × 634.06
= $984,061.12
Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.