She also has the possibility of taking an unsecured loan from her own bank of £3000 where the variable APR charged is currently 12 per cent. Panna has also just received a letter from a different bank to apply for a credit card on which the variable interest rate on new purchases for the first four months would be 0 per cent p.a. and would then rise to the normal variable rate (currently the normal rate is 18 per cent p.a.). • Panna could use all her savings to fund the purchase of the furniture outright. State one advantage and one disadvantage of this course of action.
A. $29,250 B. $31,200 C. $32,500 D. $33,800 E. $33,999 7. After having to pay increased income taxes this year, Edmond has to sell his BMW. Edmond bought the car for $49,000, but he sold it for a 20% loss.
1. Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2012: Received in January 2012 rent that was $5,000 due in December 2011 Received in December 2012 rent not 4,000 due until January 2013 Security deposit which is to be 500 refunded when tenant vacates the apartment How much rental income must Billy Dent include on his 2012 income tax return? 2. Arnold and Barbara Cane were divorced in June 2012. Pursuant to the divorce decree, Arnold is obliged to perform as follows: a.
Memo To: John & Jane Smith From: Date: 12/2/2014 Re: Summary of various tax issues Your first question is how is the $300,000 treated for purposes of federal tax income? In Code 61(a), income derived from services is one of the listed forms of taxable income. This includes fees, commissions, fringe benefits and similar items. Since the compensation was earned this year, even though you worked on the case for two years, you will include it as ordinary income this year. You can reduce your tax liability by deducting necessary business expenses that were paid in the same
Corporation FinanceBus 35200Case Study: Penelope | | 1. What is the NPV of the first generation phone project, ignoring both the possibility of investing in the second-generation project and the possibility of selling the equipment after two years? We calculate the NPV by adding the yearly future free cash flows of the project discounted at a rate equal to the cost of equity. We use the CAPM formula to calculate the cost of equity, assuming a risk free rate of 10%, a β of 1.2 and the market risk premium of 8%. We got a cost of equity of 20%.
Which of the following accounts is NOT used with the GROSS method of recording sales? a. Sales Discounts b. Sales c. Accounts Receivable d. Sales Discounts Lost PAGE 2 For the following set of questions, use the information below from the Perry Co. 1995 income statement: Purchases $85,000 Transportation-In 1,200 Inventory, January 1, 1995 16,500 Inventory, December 31, 1995 18,800 Purchase Returns & Allowances 1,400 4. The amount that Perry would report as Cost of Goods Purchased in its 1995 income statement is: a.
(TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now? (Points : 10) $11,973 $12,603 $13,267 $13,930 $14,626 | 5. (TCO B) You sold a car and accepted a note with the following
Q3) What is the conversion value? Q4) What is the option value of the bond? CASE STUDY : 2 Suppose your company needs $ 15 million to build a new assembly line. Your target debt equity ratio is 0.90. The flotation cost for new equity is 8 percent, but the flotation cost for debt is only 5%.
Romney doesn’t have a five-point plan; he has a one-point plan. And that plan is to make sure that folks at the top play by a different set of rules.” Utilizing this device adds inferences on the fact that Romney only had a one point plan. This claim states that Romney only supports the wealthy. A close relation is Epistrophe. Romney used it for one of his claims that night, “When we’re talking about math that doesn’t add up, how about $5 trillion of deficits over the last four years.
Mini Case 2 Your local office manager in a Loas subsidiary you are running comes and explains that in order to complete the sale of an aging company car, she will have to convince the police to fill in the original date on the car’s registration, and this will cost $25 with no receipt. She says she doesn’t know why it was not done properly originally. She also says she doesn’t know the date so she cannot fill it in but the police will have a record, if the dates do not match, the sale cannot be completed. Would you authorize this payment? Mini Case 3 Working for a large American utility, you are in charge of negotiating an agreement in Indonesia with the state-owned electricity company to build, own,