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:
$82,800
Explanation:
The computation of the amount of interest cost to be capitalized during 2018 is shown below:-
Amount of interest cost to be capitalized = (Borrowed amount × Rate of interest) + ($300,000 ÷ 2 × Rate of interest)
= ($720,000 × 9%) + ($150,000 × 12%)
= $82,800
Therefore for computing the amount of interest cost to be capitalized during 2018 we simply applied the above formula.
Answer:
value chain analysis
Explanation:
Value chain analysis is a tool used within a firm to identify processes that add value in an organisation. It aims to reduce activities that constitute unnecessary cost and improve on processes that add value or give competitive advantage.
Beanstalk International needs a strategy that will help it differentiate primary and support activities in the company with a view of adding more value and adapting it's product to local preferences.
The value chain analysis is ideal for this to identify primary activities that drive company competitiveness.
Answer:
build and equip a production facility in Europe-Africa and then expand it as may be needed to supply all (or at least most) of the pairs the company intends to try to sell in Europe- Africa
Explanation:
In order to have effective competition and profitable for the long term approach for decreasing or removing the effect of tariff that would be paid on pairs is that to establish the production facility so that it would get expanded and the same is to be sell in Europe-Africa
Therefore the above represents the answer
Answer:
$38.80 per share
Explanation:
The computation of the stock price one year from now is shown below:
But before that first need to do the following calculations
Current Year Price earning ratio is
= ($39.50 × 5,500,000) ÷ $8,000,000
= $27.15
Now
Next year earnings = $8,000,000 × (1 + 25%)
= $10,000,000
Finally,
Share price next year = ($10,000,000 × $27.15) ÷ 7,000,000
= $38.80 per share
