The net cash flow from the salvage value after taxes is $905,015.77.
To calculate the net cash flow from the salvage value, we need to first determine the accumulated depreciation for the building as of April 15, 2004.
We know the building was put into service on June 21, 2000 and its expected net salvage value in 2030 is $1,000,000. Based on this information, we can calculate the annual straight-line depreciation using the following formula:
Depreciation = (Cost - Salvage Value) / Life in Years
Where Cost = 766,335 + 53,586 = $819,921
Life in Years = 2030 - 2000 = 30
Depreciation = ($819,921 - $1,000,000) / 30 = -$23,397.03
Since the building has been in service for 4 years (2004 - 2000), the accumulated depreciation as of April 15, 2004 is
4 years * $23,397.03 = $93,588.12.
Next, we subtract the accumulated depreciation from the cost of the building to determine the adjusted basis:
Adjusted Basis = Cost - Accumulated Depreciation
= $819,921 - $93,588.12
= $726,332.88
Finally, we calculate the capital gains tax:
Capital Gains Tax = (Sale Price - Adjusted Basis) * Tax Rate
= ($1,083,413 - $726,332.88) * 34%
= $178,397.23
And the net cash flow from the salvage value is:
Net Cash Flow = Sale Price - Capital Gains Tax = $1,083,413 - $178,397.23 = $905,015.77
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Identify each of the following items as assets, liabilities, or equity from the drop down provided. G 1. Computer equipment 2. Wages payable 3. Dividends 4. Equipment 5. Salaries payable 6. Land Assets Equity Liabilities
Identify each of the following items as
1. Computer Equipment - Assets
2. Wages payable - Liabilities
3. Dividends - Current Liability
4. Equipment - Assets
5. Salaries payable - Liabilities
6. Land - Assets
7. Equity - Liabilities
What is an asset?An asset is considered a resource of the business that has an economic value in the future to the business which helps business activities to take place smoothly.
This is referred to as owning the business to carry out natural functioning. Both fixed and current assets are included. In contrast to current assets, which include creditors and bill receivables, fixed assets include things like buildings, machinery, and land.
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problem recognition is most likely to trigger additional stages in the purchase decision process in which of the following situations?
Problem recognition when the moment a prospective consumer realises they require or desire a good or service is known as problem recognition.
The time at which a potential consumer realizes they need or want a product or service is known as problem recognition. It is the first and most significant stage in the purchasing process. You'll have a difficult time selling a product or service if your customer doesn't need or want it.
Marketers may induce individuals to actively consider purchasing a product something which they lack by promoting its benefits. Marketers can impact consumers' desired states through advertisement, personal selling, as well as sales promotion activities, prompting them to notice a problem.
Therefore, the correct answer will be option (a)
The question is incomplete, the complete question is:
problem recognition is most likely to trigger additional stages in the purchase decision process in which of the following situations?
(a)when the moment a prospective consumer realises they require or desire a good or service is known as problem recognition.
(b) By emphasizing the benefits of a product marketers may cause people to think actively to buy a particular product that they lack
(c) both
(d)none.
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Are there any black diagnostics in BlockWorks relating to Syd's health insurance?
No, there are no black diagnostics related to health insurance. There is a black diagnostic to calculate Roman's CHIP insurance.
What is the meaning of Insurance?Insurance is a tool for risk management. You purchase protection against unforeseen financial losses when you purchase insurance. If something unpleasant happens to you, the insurance company pays you or another individual of your choosing. If you don't have insurance as well as an accident occurs, you can be liable for all expenses.
The insurance company (insurer), as well as the person, are the two parties to the legal agreement that governs insurance (insured). In this, the insurance provider guarantees to cover the insured's damages should the insured scenario materialize. The contingency is the loss-producing circumstance.
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unilever offers its dove brand of body wash to several groups: one geared toward women, one for men, and one for babies. by taking the overall market and dividing it into smaller, similar groups, unilever is engaged in blank .
Unilever offers its dove brand of body wash to several groups: one geared toward women, one for men, and one for babies. by taking the overall market and dividing it into smaller, similar groups, Unilever is engaged in market segmentation.
What is the significance of market segmentation?Marketers can use time, money, and other resources more effectively by segmenting their customers. Market segmentation enables businesses to understand their clientele. They are able to tailor campaigns to the customer segments most likely to make purchases because they have a better understanding of the needs and wants of their customers.
Companies divide their potential customers into various categories through a process called market segmentation. This enables more precise targeting across various marketing campaigns by enabling the company to allocate the right resources to each distinct segment.
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Which of the following ensures that an employee accesses the minimum amount of data necessary to complete his/her job?
A: Data privacy ensures that employees access the minimum amount of data necessary to complete their job.
Data privacy refers to the protection of personal information and ensures that this information is treated confidentially and with respect for the individuals concerned. It typically involves implementing technical and organizational measures to control and secure access to sensitive information.
While data privacy is important for protecting individuals' personal information, it does not necessarily ensure that employees only access the minimum amount of data necessary to complete their job. That goal is more closely related to the principle of least privilege (POLP), which limits access to only the information and resources that an employee needs to perform their job responsibilities.
"
Complete question
Which of the following ensures that an employee accesses the minimum amount of data necessary to complete his/her job?
Data privacy
Data protection
Data authorization
Data security
"
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Sydney needs to borrow money to buy a home. Suppose that the saving rate in the country is expected to decrease. Assuming nothing else changes, this means that if Sydney borrows now, her cost of borrowing money is expected to increase due to the following factor: a. Falling Interest rates
b. Increasing preferences for future consumption
c. Increasing preferences for current consumption
If Sydney borrows now, her cost of borrowing money is expected to increase due to the b) Increasing preferences for future consumption.
When the saving rate in a country decreases, it means that people are spending more and saving less. This increased demand for borrowing will put upward pressure on interest rates, making it more expensive for Sydney to borrow money.
This increase in the cost of borrowing is due to the fact that when the future demand for loans increases, people become less willing to lend their money at a lower rate, and so they demand a higher return. This is reflected in higher interest rates, which are an indicator of the cost of borrowing money.
The decrease in the saving rate and the increase in the demand for loans lead to increasing preferences for future consumption, which in turn causes an increase in the cost of borrowing for Sydney.
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__________ movements seek to prevent change or to undo change that has already occurred.
Group of answer choices O reform movements O regressive movements O revolutionary movements O alternative movements
Regressive movements seek to prevent change or to undo change that has already occurred.
A social movement is an organized group that uses collective action to promote or oppose change.
Some types of social movementsRevolutionary movements: It aims to bring about total social change.Reform movements: It strives to improve society by altering some part of its structure.Religious movements: It often strives to effect fundamental change in individuals and are founded on spiritual or supernatural belief systems.Alternative movements: It seeks only little changes in people's behavior.Resistance or regressive movements: It strive to prevent or reverse existing change.Learn more about social movements here:
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The airport installs two more X-ray machines, so that now a total of three x-ray machines work in parallel. What is the new capacity of the process? Express your answer in passengers per minute, round to two decimals if needed.
Every time, the bottleneck's capacity equals the process capacity.
What is process capacity?
Processing time is defined as the amount of time spent on a specific task in order to execute the computations that follow (e.g. one station in a sandwich restaurant). The definitions of flow time and flow rate from earlier are also necessary.
Every station in a business process has a capacity, which can be determined. It is always m/processing time where m is the number of resources (such as employees) assigned to the station. For instance, if it takes a worker 40 seconds to assemble a sandwich, this station can assemble 1.5 sandwiches per minute, or 1/40 of that amount of time. When there are two employees working at the same station, the capacity rises to 2/40 sandwiches per second, or 3 sandwiches per minute.The process step (station) in the flow diagram with the lowest capacity is referred to as the bottleneck. This step is also referred to as the "weakest link." Though the phase in the process that takes the longest to complete is frequently the bottleneck, it's crucial to always consider decision-making capacities.Capacity of the process: The bottleneck's capacity is always equal to the process capacity. It is helpful to calculate a figure that is easy to understand, such customers per hour or parts per day, rather than a difficult quantity like 1/40 customer per second or 1/345 part per second.Flow rate: Although it was previously defined, the term now has to be expanded to include the idea that the flow rate is the lowest possible value given the demand and process capacity. However, if there is inadequate demand, the flow rate may be lower even though it cannot theoretically be lower than the bottleneck's capacity.Utilization: Utilization informs us of the efficiency with which a resource is being utilised. It is determined using the formula flow rate / capacity, or 1/40 / 1/25, for example. Between 0% and 100% is the constant utilization.To Learn more About process capacity Refer TO:
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Match the steps of the DMAIC (define, measure, analyze, improve, and control) process with their respective objectives
A data-driven quality method used to enhance processes is called DMAIC. It is a crucial component of a Six Sigma effort, but it may also generally be used as a procedure for quality improvement or as a component of other process improvement projects.
DMAIC measure phase: what is it?The second crucial phase of the project is the DMAIC measure phase. The measure stage is when the team works to improve issue statements and other outputs from the define stage as well as establish a baseline statistic for the project.
Is DMAIC the best strategy for resolving your issues?There is one more stage that some businesses take before moving on to the main process in order to determine whether DMAIC is the best method for solving their challenges.
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a change in accounts receivable will be reported in the activities section of the statement of cash flows prepared using the indirect method.
Yes, that is accurate. Changes in accounts receivable are recorded under "operation activities" in the activities section of the statement of cash flows prepared using the indirect method.
The movement of money into and out of a company or an individual is referred to as cash flow. It can originate from a variety of sources, including investing, operating, and financing activities. More money is coming in than going out, which enables reinvestment, debt repayment, and overall financial stability. This is known as positive cash flow. When there is a negative cash flow, more money is spent than is brought in, which can cause financial problems and the requirement for more capital. For financial success and stability, effective cash flow management is essential.
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In the context of business agreements, an exception to the general rule that rejections terminate business offers concerns offers that are the subject of a(n) _. option contract
In the context of business agreements, an exception to the general rule that rejections terminate business offers concerns that are the subject of an options contract.
What Is An Options Contract?A contract is a form of agreement that has been agreed upon by all parties and all parties consciously want to fulfill all forms of responsibility contained in the contract. One type of contract is an options contract. An options contract is a form of agreement between two parties to facilitate a potential transaction on an underlying security at a strike price, prior to or on the expiration date. The subject of this options contract is an exception to the general rule that rejections terminate business offers.
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12. Taylor Industries had a fire and some of its accounting records were destroyed.
Available information is presented below for the year ended December 31.
Materials inventory, December 31 $ 15,000
Direct materials purchased 28,000
Direct materials used 22,900
Cost of goods manufactured 135,000
Additional information:
Factory overhead is 150% of direct labour cost
Finished goods inventory decreased by $18,000 during the year
Work in process inventory increased by $12,000 during the year
Calculate:
(a) Materials inventory, January 1
(b) Direct labor cost
(c) Factory overhead incurred
(d) Cost of goods sold
Materials inventory, 1st January $ 9,900
Direct Labor $ 40,040
Factory Overhead $ 60,060
Cost of goods sold $ 117,000
Define Inventory?Inventory refers to all of the items, goods, merchandise, and materials held by a business for the purpose of reselling in the market for a profit.Inventory refers to the goods and materials that a company acquires, produces, or manufactures for the purpose of manufacturing, selling, or exchanging. Also known as trading stock. Simple Inventory Control is a professional stock control, inventory management, and tracking software for small to medium businesses with one or more locations.Inventory management assists businesses in determining which and how much stock to order and when. It tracks inventory from purchase to sale. The practice identifies and responds to trends to ensure there is always enough stock to fulfill customer orders and proper warning of a shortage.To learn more about Inventory refer to:
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A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year, Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "o". a. Deductible by Includable by Details payor recipient The payments are made in 2017 as part of a divorce decree executed in 2016. b. The payments are made in 2018 as part of a divorce decree executed in 2016.
c. The payments are made in 2018 as part of a divorce decree executed in 2018. The decree makes no mention of the TCJA provisions. d. The payments are made in 2019 as part of a divorce decree executed in 2018. The divorce decree is modified in 2019 to explicitly apply the provisions of the TCJA e. The payments are made in 2019 as part of a divorce decree executed in 2016. f. The payments are made in 2019 as part of a divorce decree executed in 2019.
a. Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2017 as part of a divorce decree executed in 2016 are deductible by the payor ex-spouse and includable by the recipient ex-spouse.
b. Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2018 as part of a divorce decree executed in 2016 are deductible by the payor ex-spouse and includable by the recipient ex-spouse.
c. Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2018 as part of a divorce decree executed in 2018 are deductible by the payor ex-spouse and includable by the recipient ex-spouse.
d. Not Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2019 as part of a divorce decree executed in 2018 are not deductible by the payor ex-spouse but are includable by the recipient ex-spouse.
This is because the divorce decree was modified in 2019 to explicitly apply the provisions of the Tax Cuts and Jobs Act (TCJA) which suspended the deductibility of alimony payments for divorce decrees executed after December 31, 2018.
e. Not Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2019 as part of a divorce decree executed in 2016 are not deductible by the payor ex-spouse and are includable by the recipient ex-spouse, as the TCJA suspended the deductibility of alimony payments for divorce decrees executed after December 31, 2018.
f. Not Deductible by payor ex-spouse, Includable by recipient ex-spouse - Payments made in 2019 as part of a divorce decree executed in 2019 are not deductible by the payor ex-spouse and are includable by the recipient ex-spouse, as the TCJA suspended the deductibility of alimony payments for divorce decrees executed after December 31, 2018.
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radford is a small company that manufactures automobile bearings. managers at the company must make decisions on the kind and the cost of equipment to buy. sadler works for an investment bank and makes decisions about the sale of new common stock by abcl inc. nicholas works for a financial advising firm. he must create a financial plan and come up with a list of securities in which his client can invest. nicholas must make decisions regarding the investments that he should recommend to his clients to include in their portfolio.
All three individuals are involved in making critical financial decisions that will impact the success of their companies or clients. Their decisions must be based on sound financial analysis and must take into account the current economic and market conditions.
They must have a strong understanding of financial principles and be able to analyze and interpret financial data in order to make informed decisions.
Financial analysis is a process of evaluating the financial health and performance of an organization or business. It involves the examination of financial data, such as income statements, balance sheets, and cash flow statements, to determine the financial position and future prospects of the organization. The purpose of financial analysis is to provide stakeholders with information about the company's financial performance, such as its profitability, liquidity, and solvency.
Financial analysis can be performed by internal financial analysts or by external financial institutions such as banks, credit rating agencies, and investment firms. Financial analysis helps stakeholders make informed investment and lending decisions, identify areas for improvement, and understand the financial risks associated with the organization.
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the manager of a burger restaurant faces conflict when she must decide whether to cut hours for all employees or layoff two employees.
True, the manager of a burger restaurant faces a trade off in deciding whether to cut hours for all employees or lay off two employees.
Making decisions entails comparing the cost and benefit analysis with alternative courses of action, which is known as the opportunity cost of an item. Thus, the opportunity cost of an item is what you give up to get that item.
Hence, the manager has to compare the cost and benefits of the reduction in the hours for all employees with the alternative cost of action i.e. layoff two employees. The decision will be based on many factors like which of the above actions will increase the output, profits and reduction in costs.
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What is Economics? and why it is a social science?
Answer: Economics is the scientific study of the ownership, use, and exchange of scarce resources – often shortened to the science of scarcity. Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.
Economics is a social science focused on the economy and economic activities. Students majoring in economics study economic systems and how individuals and organizations produce and exchange goods.
consider the following two scenarios: scenario 1: an increase in the price of a german-made phone that is popular among u.s. consumers; scenario 2: a decrease in the price of a waterman industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the u.s., but not bought by u.s. consumers; indicate which price indices are affected by scenario 1 and 2:
It will also have an impact on the CPI since because the cost of this good has decreased, so will the CPI, perhaps leading to a deflation.
The rise in import costs boosts real GDP and the GDP deflator because the US will import fewer of these cars from China as a result of people choosing to buy locally produced, more affordable vehicles, which will boost GDP even more than before. As a result, this scenario only affects the GDP deflator because real GDP is calculated as the sum of consumption spending, government spending, and government saving (in dollars). Both the GDP deflator and the CPI will be impacted by this because, in the first place, it will have an impact on exports, which will grow and generate more income for the US, raising real GDP as a result of lower fishing product prices, which will boost the US economy. It will also have an impact on the CPI since because the cost of this good has decreased, so will the CPI, perhaps leading to a deflation.
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which of the following statements regarding employees today is accurate? question 6 options: the majority of employees have children under 18. most people still enjoy work and want to excel at it. remaining with a single employer is a top priority. personal success is defined only in terms of financial gains. next page
Most people still enjoy work and want to excel at it. remaining with a single employer is a top priority.
Which of the following is a human resource dilemma that businesses must resolve as a result of globalization?
Because of globalization, businesses must now weigh a complex range of factors relating to many geographies, including various cultures, employment regulations, and business practices, as well as the security of personnel and facilities abroad.
Which of the following is not the main effect that technology has had on human resource management?
It has reduced the importance of managers in leading staff. The provision of a direct access to job sources like Monster.com is excluded from the operational influence of information technology on HRM.
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The owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales. The p-value for the two-sided hypothesis test is 0.04. How would you interpret the p-value?
If there is no relationship between temperature and sales, the chance of selecting a sample this extreme would be 4%.
The owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. 4)There is a 4% chance that there is no relationship between temperature and revenue.
Given that the proprietor of an ice cream business wants to know if there is a link between ice cream sales and temperature.
The owner collects temperature and sales data for a 30-day random sample and performs a regression to see if there is a relationship between temperature (in degrees) and ice cream sales.
A) The p value represents the likelihood of rejecting the null hypothesis when it is true.
The null hypothesis in this situation would have been that there is no association between temperature and sales.
The likelihood of concluding that there is a relationship between temperature and sales when there is none exists is merely 0.04.
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Correct question:
The owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales. The p-value for the two-sided hypothesis test is 0.04.
A. How would you interpret the p-value?
1)If there is no relationship between temperature and sales, the chance of selecting a sample this extreme would be 4%.
2)If there is a relationship between temperature and sales, the chance of seeing a regression coefficient this large would be 4%.
3)There is a 4% chance that there is a relationship between temperature and revenue.
4)There is a 4% chance that there is no relationship between temperature and revenue.
Using the content provided in this lesson, create your own theory of motivation that identifies what is needed to lead in 2030 and beyond.
These skillsets are specifically mentioned because in 2030 whole economy would be driven by cutting edge technology.
What do you mean by technology?Technology, or as it is sometimes referred to, the modification and manipulation of the human environment, is the application of scientific knowledge to the practical goals of human life.
With the technological advancements that is advancing with a rapid rate, it can be said that by 2030 the whole scenario would be changed and business leaders would have to devise some new skills and motivation to keep the business running at the same pace.
Therefore, these skillsets are specifically mentioned because in 2030 whole economy would be driven by cutting edge technology.
Here are some of the skills which are needed :-
Technology, AI, Cloud Technology and ML.Globalization, various talents and skilled workforce.New and varied skills.Different and disruptive strategy.Training, development and recruitment.These are some of the steps one needs to take in consideration for 2030 and beyond.
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Discus the difference and similarities between Share capital, Term loans, Bonds, Deferred credit, Incentive sources, and Miscellaneous sources. Elaborate them with enough example based on our country Ethiopia.
A bond is a fixed-income instrument representing a loan made by an investor to a borrower that could be firms or government. They pay interest annually. A loan is a debt-instrument provided by financial institutions or banks to individuals or corporates.
The biggest similarity between stocks and bonds is that both of them are financial securities sold to investors to raise money. With stocks, the company sells a part of itself in exchange for cash. With bonds, the entity gets a loan from the investor and pays it back with interest.
Shares are part-ownership in a company, bonds are IOUs
Simply put, when an investor buys shares they are buying part of a company; when they buy bonds, they are lending money to a company. Shareholders OWN part of a company whereas bondholders are OWED money by a company.
Deferred credit is money that is received by a company but not immediately reported as income because it has not yet been earned.
An incentive is an object, item of value, or desired action or event that spurs an employee to do more of whatever was encouraged by the employer through the chosen incentive.
What are the major differences between sales-based and communications-based advertising objectives?
Jean died in a common-law state in 2021 and was survived by her husband, Loren, and three adult children. Jean's gross estate, all of which was owned solely in her name, was composed of the following assets and date of death fair market values:
Assets Values
Common stock $ 4,900,000
Residence 750,000
Personal property 60,000
IRAs 3,450,000
Hummel figurines 175,000
Total Assets $ 9,335,000
Jean's only liabilities, together with their date of death balance, were as follows:
Liabilities Balance
Mortgage on residence $175,000
Car loan 8,000
Total $183,000
The following is a list of all of the gratuitous transfers that Jean made during her lifetime:
2000: Placed the common stock listed above in an irrevocable trust in which she retained the right to a 5% distribution of the trust account revalued annually for 25 years with the remainder to her children at her death; the date of gift fair market value of the stock was $190,000; the value of Jean's retained interest on the date the gift became complete was $90,000
2001: A cash gift to her niece of $30,000, which Loren agreed to split
2005: Paid the University of Iowa $11,000 for her youngest child's tuition
2017: Gave her brother $70,000 in cash, which Loren agreed to split
Jean's will, executed in 2000, gave the residence and personal property to Loren and the Hummel figurines to a qualified charity. Jean's three children were designated as equal beneficiaries of her IRAs. Each beneficiary of Jean's estate was to pay any transfer tax due on the portions of the estate received. Her will also stipulated that any real property was to be received subject to the mortgage. Further, her will stipulated that funeral and administrative expenses were to be paid equally by her husband and three children. These funeral and administrative expenses amounted to $60,000 for Jean's estate. Jean's estate paid state death taxes in the amount of $4,184, and will pay off the car loan.
Which one of the following amounts most closely approximates the net federal estate tax due from Jean's estate? Use the Unified Federal Estate and Gift Tax Rates table.
A)
$1,455,800
B)
$106,517
C)
$999,699
D)
$0
The net federal estate tax due from Jean's estate is $106,517.
What is estate tax?
The estate tax is a federal tax imposed on the distribution of a decedent's estate. When the value exceeds a statutory exclusion threshold, an estate tax is imposed. Only the portion that is greater than the minimum amount is liable to tax. These levies, which are assessed by the federal government and some state governments, are determined using the fair market value (FMV) of the estate rather than the price the decedent paid for its assets. The state where the deceased person was residing at the time of their death is the one that imposes the tax.
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Kemp Corporation’s income statement for the year ended December 31, year 7, shows pretax income of $500,000. The following items are treated differently on the tax return and on the accounting records.
Tax Return Accounting Records
Rent income $ 35,000 $ 60,000
Depreciation expense 140,000 110,000
Premium on officer's life insurance none 45,000
Kemp’s tax rate for year 7 is 40%. What is the current portion of Kemp’s total income tax expense for year 7? $218,000
$200,000
$196,000
$178,000
The current portion of Kemp’s total income tax expense for year 7 is option c $ 196,000.
On a company's income statements, pretax earnings are displayed as "Earnings Before Taxes." For the purpose of calculating tax for financial statement purposes, it is the sum to which the corporation tax rate is applied. The Generally Accepted Accounting Principles are used to calculate pretax earnings (GAAP).
Pretax Income $500,000
Add: Accounting Expenses
Depreciation expense $110,000
Premum $45,000
Less: Accounting incomes $60,000
Less: Tax Expenses
Depreciation expense $140,000
Premium $0
Add: Tax Income [Rent] $35,000
Taxable Income $490,000
Tax rate 40%
Current Income Tax $196,000
$196,00 is the current portion of Kemp’s total income tax expense for year 7.
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according to the fisher equation, the nominal interest rates will be 15 percent if the inflation rate is:
a. rate of inflation
b real interest rate minus the rate of inflation
c real interest rate plus the rate of inflation
d. rate of unemployment
e. real interest rate plus short-run economic fluctuations
C. real interest rate plus the rate of inflation
What is the nominal interest rate according to Fisher equation?
According to the equation, the nominal interest rate is the product of the real interest rate and inflation. When investors or lenders request an extra payment to make up for losses in buying power caused by high inflation, the Fisher equation is frequently used.
What is Fisher's rule?Bond analysis can be done using the Fisher equation. The nominal interest rate less the predicted inflation rate essentially represents the real yield on a bond. The bondholder's real return will be negatively affected if actual inflation during the bond's life exceeds expected inflation.
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Aschli, a member, prepares individual tax returns for about 300 clients during the year. In addition, she prepares approximately 50 business returns. Aschli uses three full-time and two per-
diem tax preparers during the busy season to assist her in the preparation of the aforementioned tax returns. Sean Williams has been going to Aschli for the past five years to have joint tax
returns prepared for himself and his wife Madison. Their tax returns for the year 20X6 were completed and filed on April 12, 20X7. Sean and Madison have decided to get a divorce and on
June 16, 20X7 Aschli receives a request from Sean for copies of previously filed tax returns and supporting schedules. On July 12, 20X7 Aschli receives a request from Madison for copies of
the same returns and supporting schedules. Aschli has never met nor spoken to Madison Williams at any time during Aschli's engagement to prepare the joint tax returns for Sean and
Madison Williams. In addition, Sean Williams has requested that information not be provided to Madison Williams. Which of the following statements is true regarding Aschli's obligation to
provide copies to both Sean and Madison Williams as it relates to the rules regarding client confidential information?
C) Since Aschli has never met nor spoken to Madison Williams, Aschli is not obligated to provide copies of returns to her and such disclosure would violate confidentiality rules.
C) Madison Williams must provide Aschli with a legally enforceable subpoena before Aschli can provide Madison with copies of tax returns.
C) Since Aschli has worked exclusively with Sean Williams over the years, Aschli has no obligation to provide copies of returns to Madison Williams and such disclosure would violate confidentiality
rules.
C) None of the above
Since Aschli has worked exclusively with Sean Williams over the years, Aschli has no obligation to provide copies of returns to Madison Williams and such disclosure would violate confidentiality rules. The correct option is C.
Why is it called a tax return?The word "return" has several definitions, including official reports. An income tax return is, in this sense, a legally required report of pertinent financial information.
About 300 clients receive individual tax return preparation services from member Aschli each year. Additionally, she completes about 50 business tax returns. During the busy season, Aschli employs two per-diem and three full-time tax preparers to help her with the aforementioned tax returns.
Thus, the ideal selection is option C.
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After graduation from Accounting & Finance department of ZBC, Million Getaneh entered private practice. The transactions of the business Nov.1 through Nov.30 are as follows:
Nov. 1. Million invested Br.25, 000 in his newly organized business MG Consulting.
Nov 5. Paid Br.6, 000 for rent for three months starting Nov.1.
Nov 9. Purchased office supplies for Br.12, 000; paid 10,000 of the amount & the remaining to be paid at future date.
Nov 15. Purchased Br.4000 of equipment on credit making a 25% down payment.
Nov 18. Delivered tax advisory service for a fee of Br.8000 to Shell Ethiopia plc.
Nov 21. Made a partial payment of Br. 3,000 on the equipment Purchased Nov.15. Nov 30. Determined & recognized the used portion of Supplies, Br.8, 000 & rent expired Br.5,000.
required
A. Journalize the above transactions?
B. Post it on ledger?
C. Prepare trial balance?
D. Prepare financial statements?
The proper Solution for the given Data set of the Balance sheet is provided below.
What is a Balance sheet?The term balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.
1) A. The balance of the owner's equity at the beginning of the period can be calculated by subtracting the liabilities (beginning of the year) from the assets (beginning of the year).B. The balance of assets at the beginning of the year can be calculated by adding the revenue for the year, and additional investment during the period, and subtracting the expenses for the year and withdrawals for the year.
2. A. The owner's equity balance on Jan.1, 19x1 is Br.25,000 and on Jan.31, 19x1 is Br.25,000 + Br.11,000 = Br.36,000.B. The net income or net loss of the business is a net loss of Br.1,500 (withdrawal).
C. The net income or net loss of the business is a net loss of Br.6500 + Br.1500 = Br.8,000 (additional investment + assets taken out of the business).
3. A. Journalizing the transactions:Nov 1: Cash 25,000, Capital 25,000
Nov 5: Rent Expense 6,000, Cash 6,000
Nov 9: Office Supplies 12,000, Accounts Payable 2,000, Cash 10,000
Nov 15: Equipment 4,000, Accounts Payable 4,000, Cash 1,000
Nov 18: Service Revenue 8,000, Cash 8,000
Nov 21: Equipment 3,000, Accounts Payable 1,500, Cash 1,500
Nov 30: Office Supplies Expense 8,000, Rent Expense 5,000.
The balance of assets at the beginning of the year
B. Posting on ledger:Debit Credit
Office Supplies 12,000 Accounts Payable 2,000
Equipment 4,000 Accounts Payable 4,000
Service Revenue 8,000 Cash 8,000
Equipment 3,000 Accounts Payable 1,500
Office Supplies Expense 8,000 Office Supplies 12,000
Rent Expense 6,000 Rent Expense 5,000
Cash 10,000 Office Supplies 2,000
Cash 6,000 Rent Expense 6,000
Cash 1,000 Equipment 1,000
Cash 1,500 Equipment 1,500
C. Trial balance:Debit Credit
Cash 25,000 Cash 25,000
Capital 25,000 Capital 25,000
Equipment 4,000 Equipment 4,000
Service Revenue 8,000 Service Revenue 8,000
Office Supplies 12,000 Office Supplies 12,000
Rent Expense 11,000 Rent Expense 11,000
Accounts Payable 7,500 Accounts Payable 7,500
D. Financial statements are not provided.Learn more about the Balance sheet here:
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Complete Question:
Consider the following data extracted from the records of Damot Construction co. &
answer the questions that follow.
Assets (end of the year)……………………………….Br.155, 000
Liabilities (end of the year)…………………………………35, 000
Liabilities (beginning of the year)……………………….…45,000
Additional Information
Withdrawals for the year…………………………………...15, 000
Revenue for the year………. ………………………………..20,000
Expenses for the year…………………………………………15,000
Additional investment during the period……………......25,000
A. The balance of owner’s equity at the beginning of the period.
B. The balance of assets at the beginning of the period.
2. Juilate Auditing firm started operation as of Jan.1,19x1 with a total property of Br.25,000
fully claimed by the owner, Ato Bebisha. After one month’s operation as of Jan.31,19x1, the
total assets of the business increased by Br.11,000.The total creditor’s claims on the same date
account for 20% of the total assets.
Required
A. Compute the owner’s equity balance on Jan.1, 19x1 & Jan.31, 19x1.
B. Assume that there was no additional investment during the period but a withdrawal of Br.1,
500 was made. What is the net income or net loss of the business? (Identify the figure as
net income or a net loss.)
C. Assume that the additional investment &b assets taken out of the business by the owner are
Br.6500 & Br.1500 respectively. Then what is the net income or net loss of the business?
(Identify the figure as net income or net loss).
3. After graduating from the Accounting & Finance department of ZBC, Million Getaneh entered
private practice. The transactions of the business from Nov.1 through Nov.30 are as follows:
Nov. 1. Million invested Br.25, 000 in his newly organized business MG Consulting.
5. Paid Br.6, 000 for rent for three months starting Nov.1.
9. Purchased office supplies for Br.12, 000; paid 10,000 of the amount & the remaining
to be paid at future date.
15. Purchased Br.4000 of equipment on credit making a 25% down payment.
18. Delivered tax advisory service for a fee of Br.8000 to Shell Ethiopia plc.
4 | P a g e
21. Made a partial payment of Br. 3,000 on the equipment Purchased on Nov.15.
30. Determined & recognized the used portion of Supplies, Br.8, 000 & rent expired
Br.5,000.
Required
A. Journalize the above transactions?
B. Post it on the ledger?
C. Prepare trial balance?
D. Prepare financial statements?
True or False, one disadvantage of forming a corporation rather than a partnership is that this makes it more difficult for the firm's investors to transfer their ownership interests.
One disadvantage of forming a corporation rather than a partnership is that this makes it more difficult for the firm's investors to transfer their ownership interests. The statement is False.
What is a partnership?When two or more two people come up with the objective to manage the operation of a business by making an alliance by sharing capital for investment and profit or loss of the organization. The collaboration is said to be a partnership.
A corporation is a business organization where financial investments are made by stockholders in return for a portion of the organization's profits or ownership.
Therefore, the statement is false.
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Out of respect for message recipients, business professionals should ensure that all emails they send
Out of respect for message recipients, business professionals should ensure that all emails they send. are pertinent and needed.
What are message recipients?
Message Recipient means any person who, by means of the Communication Service, receives a message from Subscriber or sends a message to Subscriber. An email recipient is an individual who has opted-in to receive email from either an individual or a business. If an individual receives an email from a business, the email recipient has likely signed up through the business' website in order to receive information, alerts, and other business news. The receiver is the person or group of persons who receives the message sent by the sender Opens in new window. This person can also be referred to as the recipient or destination of the information.
The recipient's title (such as Mr., Ms., or Dr.) and full name (address a woman who does not have a professional title as Ms. unless you know she prefers Miss or Mrs.; if the recipient does not have a title and you are unsure of his or her gender, omit the title).
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A father gives a $5,000 gift of securities to his son; and a $22,000 gift of securities to his daughter. Which statement is TRUE?
The father has tax liability on the present to his daughter which cost $22,000. So option c is correct.
In 2020, the initial $15,000 of a gift (other than one to a spouse) is exempt from tax. Any sum in excess of this is subject to gift tax, which the giver must pay. The $5,000 worth of the present to the son complies with the exclusion. Gift tax must be paid by the giver on any amount beyond the exclusion for gifts up to the gift limit (the father).
In both public and private markets, securities are fungible, tradeable financial instruments used to raise cash. The three main categories of securities are: equity, which gives investors ownership rights; debt, which is effectively a loan returned with recurring payments; and hybrids, which include features of both debt and equity.
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The complete question is given below
A father gives a $22,000 gift of securities to his son; and a $22,000 gift of securities to his daughter. Which statement is TRUE? A. The father has no gift tax liability B. The father has gift tax liability on the gift to the son C. The father has gift tax liability on the gift to the daughter D. The father has gift tax liability on both gifts
