Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
The correct matches are as follows:
1. DISTRIBUTION FEE: Management companies pay brokers 0.1% fee for marketing the fund.
In mutual fund business, distribution fee refers to the amount of money that is charged for marketing and selling fund shares. The money is used for such thing as compensating the brokers or those who sell the fund shares, paying for advertisement, printing and mailing of sales literature, etc. The distribution fee is typically capped at 0.75% of mutual asset.
2. ACCOUNT MAINTENANCE FEE: $20 broker fee charged against the mutual fund.
This is the amount of money that a broker charges for maintaing each mutual fund in an account. The fee is paid on a yearly basis by the mutual fund to the broker. Thus, for an investor who hold five mutual funds, his broker will be paid $100 every year.
3. REVENUE SHARING FEE: Payment to company that investors go through to buy the mutual funds.
Revenue sharing is said to occur when the mutual fund company makes payment to the broker or a dealer that is involved in the investment. Revenue sharing can take many form and is usually calculated as a percentage of the invested amount. Revenue sharing serves as incentives to brokers to promote one fund relative to another.
4. SHAREHOLDER SERVICE FEE: 25% broker fee charged against the mutual fund for servicing the account.
This is the amount of money that a broker is paid for servicing an account. Under the current regulations, a broker can be paid as much as 0.25% of the worth of a mutual investment as a payment for servicing the account.
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Answer:
Consider the following calculations
Explanation:
EBIT - Interest + Dividend Income ( 1 - 0.7) = EBT
$ 14.000.000 - $ 1.750.000 + $ 1.000.000 * 0.3 = $ 12.550.000
Base taxes for $ 10000000 = $ 3400000
( $ 12550000 - $ 10000000 ) *0.35 = $ 892500
$ 3400000 + $ 892500 = $ 4292500 in total taxes due
Answer:$813,000
Explanation:
The cost of property plants and equipment in relation to IAS 16 includes the purchase price, related tax, transportation, professional fee, first insurance cost, and all other costs incurred to put the property in a position to be put into the desired use. The cost also includes all related miscellaneous cost.
