Chapter 15 52. [LO 3] Evon would like to organize SHO as either an LLC or as a C corporation generating an 11 percent annual before-tax return on a $200,000 investment. Assume individual and corporate tax rates are both 35 percent and individual capital gains and dividend tax rates are 15 percent. SHO will pay out its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume Evon is the sole owner of the entity and ignore self-employment taxes.
Acct Unit 1 Homework Assignment 06/12/15 Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners’ equity. What are the partnership’s total liabilities? $350,000 – Liabilities = $100,000 $350,000 - $100,000 = $100,000 - $100,000 Answer: $250,000 = Liabilities Question 2: During the first month of operation, Brady Brothers made sales to customers totaling $12,000 but received only $6,000 from customers in cash. Brady Brothers incurred $8,000 for operating expense but only paid $5,000 in cash for those expenses. What was Brady Brothers cash basis income?
2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
in interest for the first 5 months on the balance you bring across. The card however does have an annual fee of $144 plus an additional $15 for an extra card can be either a MasterCard or American express car. The gold card does have awards points using American express Up to 2 Awards points for every $1 spent and with MasterCard 1 point for every dollar spent on the Commonwealth Bank Gold Credit Card which you can redeem your points for a massive range of gift cards, merchandise, cash back,
The RD&I Division sold a production quality control service, on contract, to the other divisions at variable cost plus 10% and also contracted externally. RD&I was given a budget appropriation, for researching new products, which was not included in the calculation of its ROI. John Big's objective in decentralizing the corporate structure was to make each division operate and be evaluated as if it were an independent business. Corporate overhead was allocated to the divisions on the basis of a percentage of sales. The division managers were each allowed to make annual investments of not more than 5% of their divisional net assets on their own authority.
This year Lionel borrowed $24,000 from Counti Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for interest on higher education loans under the following circumstances: a. Lionel’s AGI before deducting interest on higher education loans is $50,000. b. Lionel’s AGI before deducting interest on higher education loans is $69,000. c. Lionel’s AGI before deducting interest on higher education loans is $90,000.
Question : (TCO C) Negative goodwill arises when the _____ of the net assets acquired is higher than the purchase price of the assets. Student Answer: useful life carrying value fair value excess earnings Instructor Explanation: Chapter 12 Points Received: 5 of 5 Comments: Question 4. Question : (TCO C) Danks Corporation purchased a patent for $450,000 on September 1, 2008. It had a useful life of 10 years. On January 1, 2010, Danks spent $110,000 to successfully defend the patent in a lawsuit.
Also CHB was prepared to invest about $5 million in Spyder and was willing to accept a minority stake, the company was intent on arranging a deal which would yield a minimum 30% return. Both sides agreed to deal that CHB investing a total of $4.5 million in two stages. Upon the completion of the deal, the firm would put in $2.5 million in exchange for preferred stock convertible into 22% of Spyder common stock. Later CHB have the option to invest an additional $2 million – half of which would be a cash payment to be split by Jacobs and his partners. If CHB elected to invest at both stages, it’s stake would increase to 37.9% of common stock.
Task Lords & Ladies Boutique wishes to expand and has borrowed $250,000. As a condition for making this loan, the bank requires that the store maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 at 15 June. Josh Hwan, owner of the boutique, is considering what might happen if the business reports a current ratio of 1.40 to the bank. One course of action for Hwan is to record in June some revenue that the business will earn in July of next year.
a. Assuming that shortages are not allowed, determine the minimum constant workforce that he will need over the next five years. b. Evaluate the cost of the plan found in part (a). P4-2 For the data given in P4-1, graph the cumulative net demand.