Answer:
The Correct Answer:
$40,000
Explanation:
IRC Section 1250 requires that excess depreciation (actual depreciation in excess of straight-line depreciation) be recaptured as ordinary income. Since the property has sold for more than the adjusted basis ($300,000 − $40,000 = $260,000 adjusted basis), the initial gains are recaptured based on the original purchase price of $300,000.
<em>This makes the first $40,000 of the profit subject to the unrecaptured Section 1250 gain while the remaining $20,000 is considered regular long-term capital gains.
</em>
Answer:
Ke 13% according to CAPM
Explanation:
We calculate the cost of equity using the CAPM
risk free 0.05
market rate
premium market = (market rate - risk free)= 0.08
beta(non diversifiable risk) = 1
<u>We have to use the beta of the firm. </u>
The beta of a comparable firm is used when we lack information for our own firm.
Ke 0.13000 = 13%
Answer:
Number of units which company plan to produce in February is 352000
Explanation:
We have given expected sales in January, February and march is 440000, 390000 and 380000 units respectively
And desired needing finished goods in inventory in January, February and march is 39000, 38000 and 40000 units respectively
We have to find the how many units company plans to producing for month February
Number of units which company plan to produce in February = 390000 - 38000 = 352000
Answer:
Following are the solution to this question:
Explanation:
By IAS 1 — Annual Report presentation, 3 concepts were all first consideration, its second consistency as well as the third reporting framework related to investment based that can be define as follows:
- Full accrual basis: its IAS 1 allows an organization to compile all financial reports through an accounting standards basis, with exception of working capital details. Even more cash accounting is a method to record profit or expenditure account balances when they are made.
- All financial statements throughout the United States were repayment-based. Any cost will not be reported underneath the accrual system once it is accruing. It implies that recognition is irrelevant whenever a company pays cash to pay an expense.
- Thus the allocation of 2 million to the year that the Pleasant Corp. was created must be listed as just an expense. As well as the remaining payment amount must be listed as expenses once it is paid. Future interventions throughout the current FY should not be published.
- Also, notice the payment incoming to ensure that you will be prepared when due, but just don't join the way of supporting using the cash method. It simply reports an expense of what you are pay if you make a payment when you choose to use the cash method. Consequently, until the next date, you would not modify your reporting, which is also known as journal entries.
Answer:
C. 30,210
Explanation:
Cost of merchandise sold = cost of merchandise purchase - cost of merchandise left in inventory
= Purchases of $32,000 - Purchases discounts of $960 - Purchases returns and allowances of $1,200 + Freight In of $1,040
- ( Merchandise inventory at September 30 of $6,370 - Merchandise inventory September 1 of $5,700)
= 32,000- 960- 1,200+1,040 - 670 = 30,210
