Questions by yweimann - Page 30
Suppose it is a well-known fact that among ten-year old Ford F-150s, two out of three trucks are good and one in three is a lemon. Suppose that it is also known to all parties that a good truck is worth $6,000 to current owners and $9,000 to potential buyers. A bad truck, on the other hand, is only worth $1,000 to current owners and $3,000 to potential buyers. Throughout, assume that buyers are risk-neutral. Now suppose that the quality is known to current owners, but cannot be ascertained by potential buyers. Assuming buyers are risk-neutral, how much is a buyer willing to pay at most for a randomly selected truck? Still assuming that the quality of a truck is known to current owners, but cannot be ascertained by potential buyers, and in light of your previous answer, will a good used truck sell and for how much? No, it will not be sold. Yes, it will sell for at least $7,000 and at most $9,000. Yes, it will sell for at least $6,000 and at most $7,000. Yes, it will sell for $3,000.
Caperdic LLP (Caperdic) is 100% owned by Colin Caperdic, a resident of Canada. The company has a December 31 year end. You have been provided with the following information for Caperdic:For the year ended December 31, 2021, Caperdic reported accounting net income of $747,500. Current and future income taxes reported in the income statement were $103,600.Selling general and administration expenses includes meals and entertainment of $16,200 and golf club membership fees of $9,800 for Colin. He uses the club exclusively to entertain clients of Caperdic.For accounting purposes, Caperdic records its short-term investments at fair market value. During fiscal 2020, Caperdic paid $28,700 to acquire shares of Rennock Co. (Rennock). The fair value of Caperdics investment in Rennock was $26,500 and $31,600 on December 31, 2020, and 2021, respectively. Caperdic received a dividend of $1,400 on this investment during 2021.Caperdic owns 25% of the shares of Gurnell Co. (Gurnell). It accounts for this investment using the equity method. Caperdic reported equity income on this investment of $32,800 during 2021. Caperdic received $20,900 of dividends on this investment during 2021. Gurnell had designated 20% of these dividends as eligible dividends and the remaining 80% as non-eligible dividends. Gurnell received a refund from NERDTOH at a rate of 10% of the non-eligible dividends paid, and from ERDTOH at a rate of 25% of the eligible dividends paid.During 2021 Caperdic earned $24,600 in rental income (net of CCA) on a warehouse rented out to a neighbouring business.Late in 2021, Caperdic shut down one of its factories and sold the land, building, and equipment, the details as follows:Selling OriginalPrice Cost NBV UCCLand $ 374,000 $ 295,000Building 432,000 346,000 265,000 302,000Caperdic made charitable donation of $16,800 during 2021.Assume that the CCA claim for other depreciable assets is equal to amortization expense reported in accounting net income and that the CCA claim does not include any recapture or terminal losses on disposal of depreciable capital assets.Information about carry forwards from the 2020 notice of assessment are as follows:Net capital loss from 2017 $5,750Non-capital loss available for carry forward 38,900Charitable donations available for carry forward 4,800NERDTOH account balance (1) 8,400(1) Caperdic did not declare or pay any dividends during 2020. During 2021, Caperdic declared and paid dividends of $95,000.Caperdics taxable capital employed in Canada in 2020 was less than $10,000,000 and its adjusted aggregate investment income in the that year was less than $30,000. Caperdic is not associated with any other corporations.Required:Part Aa) Determine net income for tax purposes for Caperdic for 2021.b) Determine taxable income for Caperdic for 2021.c) Determine property income and taxable capital gains included in net income for 2021.d) Determine aggregate investment incomee) Determine net Canadian active business income for Caperdic for 2021.
2. Pre-Course Diagnostic: Commas The following questions will test your knowledge of comma usage. Answer the questions to review what you have just learned. Identify the comma errors in the following sentences, and consider how best to revise them. Although you may not have received the e-mail we have been informed that the division head of the Finance Department is leaving at the end of the month. Choose the best revision of the previous sentence. Although you may not have received the e-mail, we have been informed that the division head of the Finance Department is leaving at the end of the month. Although you may not have received the e-mail we have been informed, that the division head of the Finance Department, is leaving at the end of the month. Although you may not have received the e-mail, we have been informed, that the division head of the Finance Department is leaving, at the end of the month. Please turn off the AC when you leave the warehouse and make certain you dont forget to set the alarm unleash the dogs chain the gate and activate the automatic floodlights. Choose the best revision of the previous sentence. Please turn off the AC, when you leave the warehouse, and make certain you dont forget to set the alarm unleash the dogs, chain the gate and activate the automatic floodlights. Please turn off the AC when you leave the warehouse, and make certain you dont forget to set the alarm, unleash the dogs, chain the gate, and activate the automatic floodlights. Please turn off the AC when you leave the warehouse, and make certain you dont forget to set the alarm unleash the dogs chain the gate and activate the automatic floodlights. The invoice should be sent to Ventura Communications 58 Jackrabbit Avenue Suite 10 Phoenix AZ 85745 no later than March 3 2023. Choose the best revision of the sentence above. The invoice should be sent to Ventura Communications 58 Jackrabbit Avenue Suite 10, Phoenix, AZ 85745 no later than March, 3 2023. The invoice should be sent to Ventura Communications 58 Jackrabbit Avenue Suite 10 Phoenix AZ 85745, no later than March 3, 2023. The invoice should be sent to Ventura Communications, 58 Jackrabbit Avenue, Suite 10, Phoenix, AZ 85745, no later than March 3, 2023. Which of the following sentences use commas correctly? Check all that apply. Please submit your proposal before October 18, 2023. All participants must sign in register their vehicles and report to their assigned locations before 7:30. Not one employee was willing to sit at the desk, that had belonged to the man who turned out to be a serial killer. When she returned to work after maternity leave, she learned that her office had been relocated to the second floor. Maurice listened to the teams proposal and then he promptly turned it down.