The trade-off theory of capital structure suggests that there is an optimal level of debt for a firm .
What is capital structure ?Where the benefits of debt financing (such as tax shields and increased leverage) are balanced against the costs (such as increased bankruptcy risk and agency costs).
Over the years, many scholars have tested the validity of the trade-off theory of capital structure, and some have found evidence that supports it. Here are a few examples:
Modigliani and Miller (1958) first proposed the trade-off theory and suggested that there was an optimal level of debt for firms. They argued that, in the absence of taxes and bankruptcy costs, the capital structure of a firm would be irrelevant. However, in the presence of taxes and bankruptcy costs, there would be an optimal level of debt.
Rajan and Zingales (1995) studied a sample of 7,000 firms from 32 countries and found that the optimal level of debt varied across countries, depending on factors such as the legal system, tax code, and financial system. They also found evidence that firms with more growth opportunities tended to have lower debt ratios, consistent with the trade-off theory.
Frank and Goyal (2003) analyzed data from 1971 to 1998 for a sample of US firms and found that firms tended to adjust their capital structure towards a target level of debt. They also found evidence that the target debt ratio was influenced by factors such as tax rates, profitability, and asset tangibility.
Overall, while there is some evidence that supports the trade-off theory of capital structure, it is important to note that other theories, such as the pecking order theory and the agency theory, also provide alternative explanations for firms' capital structure decisions.
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Coronado Company is authorized to issue 9000 shares of 9%, $100 par value preferred stock and 522000 shares of no-par common stock with a stated value of $1 per share. If Coronado issues 4500 shares of preferred stock for land with an asking price of $571000 and a market value of $547000, which of the following would be the journal entry for Coronado to record?
(a) Land 571000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 121000
(b) Land 547000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 97000
(c) Land 450000
Preferred Stock 450000
(d) Land 547000
Preferred Stock 547000
Answer:
(b) Land 547000
Preferred Stock 450000
Paid-in Capital in Excess of Par-Preferred 97000
Explanation:
The journal entry is shown below;
Land $547,000
To Preferred stock $450,000 (4,500 shares × $100)
To Paid in capital, in excess of par- preferred $97,000
(being the preferred stock is issued in exchange of land)
Here the land is debited as it increased the asset and credited the preferred stock & paid in capital as it increased the equity
Therefore the correct option is b.
Can someone please help ASAP!!!
IN UR OWN WORDS PLEASE
Thanks!!
The Federal Reserve uses three tools to set monetary policy through the banks. Identify these three tools and provide an example of how each tool affects individual consumers. (5 points)
Monetary Policy Implementation: The Fed's Policy Toolkit. Reserve requirements, the discount rate, and open market operations are the three instruments the Fed has historically used to implement monetary policy.
Which tool of monetary policy is most important and why?To accomplish macroeconomic objectives, a monetary policy employs a variety of tools, including open market operations, requirements for bank reserves, and the discount rate. Open market operations, however, are regarded as the most significant and frequently applied tool of the three.
The most crucial and efficient method of expanding the money supply out of these three is to purchase bonds on the open market. The Fed must convince banks to make fewer loans if it wants to shrink the money supply.
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juan mcdonald is willing to pay $600 for a new ipad. apple (the producer of ipads) is selling a new ipad for $700. it costs apple $400 to produce this ipad. a voluntary economic transaction between juan and apple occur because would be better off due to the transaction.
Yes, Juan gains from the iPad's decreased pricing since he is willing to spend $600 for it rather than the $700 asking price. However, Apple also profits from the deal as they can sell the iPad for $600, which is more than their $400 cost of manufacture.
What is voluntary economic transaction?An exchange of commodities, services, or resources between two parties that is voluntary in nature involves both parties' voluntary consent to participate. Both sides agree that they will profit from the trade, and neither is required to participate, making the exchange voluntary. Market economies are built on the tenets of supply and demand, and this kind of transaction is their cornerstone.
Resource allocation is made more effective and both parties profit from the trade when transactions are voluntary. They may also promote economic expansion and open up fresh options for both consumers and companies.
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Which of the following is the BEST example of a consumer product?
O a case of toothbrushes sold to a dentist
Opeanuts to be sold by a vendor at a football game
Oa car bought by a real estate agency for its salespeople to use
O a textbook purchased by a student taking this class
The BEST example of a consumer product is: a textbook purchased by a student taking this class.
Consumer product can be defined as product that are bought or purchased by an individual or consumer for their own use.
"A textbook purchased by a student taking this class" is the best example of consumer product reason being the student specifically purchased the text book for his or her own personal use.
Example of consumer product is purchasing a shoe for your own use. Hence, based on the information given the student is the final user of the textbook.
Inconclusion the BEST example of a consumer product is: a textbook purchased by a student taking this class.
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100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.
Corn
Diamonds
United States
60
10
Congo
20
5
Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.
Answer:
In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.
What is the open-door cost of delivering corn?
The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.
This can be found as:
= Units of jewels/Units of corn
= 10/60 jewels
All in all, choice B is right.
Answer:
B) The United States should specialize in corn and trade for diamonds.
Explanation:
I got it right on the test
What should be the primary objective of managers?
Answer:
to manage everything in that business
Answer:
In servant leadership, the organization recognizes employees as experts in their field and work to help them work efficiently. No matter which type of management style is used by an organization, the main objective of managers is to help employees reach company goals and maintain company standards and policies.
HOPE U UNDERSTAND
What are stakeholder capitalism and shareholder capitalism?
food and shelter are examples of a need.
what are the similarity between the multiplier and the accelerator
Explanation:
Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment.
But in other words, in the case of multiplier, consumption is dependent upon investment, but in the case of accelerator investment is dependent upon consumption
If a firm is operating at a point on its long-run average total cost curve where the slope is negative, it
is
O experiencing increasing returns to scale
O experiencing constant returns to scale
O experiencing decreasing returns to scale
O achieving efficient scale
O
making progressively less as it increases its inputs
A company is enjoying growing returns to scale if it is performing at a position on its long-run total cost average curve at which slope is negative.
What in business is the firm?A partnership is a for-profit enterprise that often takes the form of a partnership and offers professional services like accountancy or legal counsel. According to the philosophy of the firm, places operate to maximize profits.
Why does "firm" signify "company"?The phrase "business house" first appeared there in English language in 1744, according to an International Etymology Dictionary. It is said to have originated from the German term Firma, which meant "a firm, name of either a firm" and was derived as from Italian words Firma, which meant "signature," and Firmare, which meant "to sign."
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q Conflict Consequences 2 Difference between critical and Creative thinking. 3. Positive Use & Teisure time 41m Portance & Self Identity Svalues associated with creative Thinking
Critical thinking involves analyzing and evaluating information, while creative thinking involves generating new ideas and solutions. Positive use of leisure time includes engaging in activities that promote personal well-being, learning, self-improvement, socializing, and exploring new experiences.
Difference between critical and creative thinking:
Critical thinking is a cognitive process that involves analyzing and evaluating information or arguments in a logical and systematic manner. It focuses on objective analysis, reasoning, and problem-solving. Critical thinking requires the ability to question assumptions, recognize biases, and assess evidence to form well-reasoned judgments or decisions.
On the other hand, creative thinking involves generating new ideas, insights, or solutions. It is a process of divergent thinking, breaking away from conventional thoughts and exploring alternative perspectives.
Creative thinking often involves combining different ideas, making connections, and thinking outside the box. It encourages imagination, flexibility, and the ability to embrace uncertainty.
While critical thinking aims to assess and evaluate existing information or arguments, creative thinking aims to generate new possibilities or approaches. Critical thinking seeks to analyze and deconstruct, while creative thinking seeks to synthesize and construct.
Positive use of leisure time:
Leisure time refers to the period when individuals are free from work or other obligations and can engage in activities of their choice. Positive use of leisure time involves engaging in activities that contribute to personal well-being, growth, and fulfillment. Here are some examples:
Pursuing hobbies and interests: Engaging in activities such as painting, playing a musical instrument, gardening, or sports can provide relaxation, personal enjoyment, and a sense of accomplishment.
Learning and self-improvement: Using leisure time to learn new skills, read books, take online courses, or engage in personal development activities can enhance knowledge, broaden perspectives, and foster personal growth.
Physical and mental well-being: Allocating leisure time for exercise, meditation, yoga, or other wellness activities promotes physical fitness, reduces stress, and enhances overall well-being.
Socializing and building relationships: Spending leisure time with family, friends, or participating in community activities helps foster social connections, build relationships, and strengthen support networks.
Exploring new experiences: Traveling, visiting museums, attending cultural events, or trying new cuisines broadens horizons, provides exposure to different cultures, and creates memorable experiences.
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You own a graphic design business. You have a new client who is refusing to
pay her bill because she doesn't like the way her brochures turned out, even
though you created them based on her specifications. Because you do not
have a long-standing relationship with this client and you don't want to spend
a lot of money getting this dispute resolved, which of the following is the best
method for you to pursue?
Owning a graphic designing business the best way to resolve the dispute is mediation , as the individual will address the loss of a party to another.
What is litigation?Litigation is the process of taking a dispute to court, where the court hears the trial and upon considering all the aspects it provides a decision.
Litigation process is lengthy and requires more money to be paid to lawyers.
Mediation is the process in which an unrelated person tries to consider the negative effects of both the parties and addresses them to the other party.
Arbitration is the process in which all the facts and figures of the dispute is highlighted and then a decision is taken by a third party.
Negotiations are done when the other party is considering the other party which does not seem to be the case here.
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In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good. DRAW THEGRAPHS
a. The population decreases and productivity increases
b. Income increases and the price of inputs increase
c. The number of firms in the market decreases and income decreases
d. Consumer preference decreases and the price of a complement increases
e. The price of a substitute in consumption increases and the price of a substitute in production increases
Answer:
how to draw graf in this
The competitive threat that outsiders will enter a market is weaker when
The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.
The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.
There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.
Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.
The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.
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Other than culture, what other organizational factors should be used to determine which project structure should be used?
Answer:
The two major considerations are the percentage of core work that involves projects and resource availability.
Which factor of production is LEAST likely labeled in the photo?
Ride Tools
A)
capital
B)
human resources
C)
entrepreneurship
D
natural resources
Answer:
Natural resources
Explanation:
Humans should bring an end to all ways of degradation. Cutting down on food waste would only increase the amount of atmospheric carbon dioxide. Alternatively, inspire people to grow more trees in order to maintain nature's harmony. Furthermore, it reduces electricity consumption around the board.
critcism of modern management theory
Critics argue modern management theory is rigid, short-sighted, lacks inclusivity, and limits employee empowerment and engagement.
Modern management theory has received its fair share of criticism. One critique is its overemphasis on rigid hierarchical structures, which can stifle creativity and hinder employee autonomy. Another criticism is the focus on short-term financial gains, often at the expense of long-term sustainability and employee well-being. Critics argue that this approach neglects the importance of social and environmental factors in organizational success. Additionally, modern management theory is often criticized for its lack of inclusivity and failure to address issues of diversity and equity. Furthermore, some argue that the reliance on top-down decision-making and command-and-control structures limits employee engagement and empowerment. These criticisms highlight the need for a more flexible, holistic, and human-centered approach to management that takes into account the complex dynamics of organizations and their impact on individuals and society.For more such questions on Modern management theory:
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What is compounding? What would the future of $500 be after 5 years at 10% compound interest rate?
Compounding is the interaction where the worth of a speculation increments on the grounds that the income on a venture, both capital gains and premium, acquire interest over the long haul.
Elaborating:The formula of compound interest rate is,
A=P(1+r/n)nt
Putting all values of P,r,n,t we get,
A=500(1+.10/1)5=500 ×1.61 = 805.255= 805.26
So, the future value is $805.26
What is the significance of compound interest?Your wealth grows at a faster rate thanks to compound interest. Because you will earn returns on the money you invest and on returns at the end of each compounding period, it grows a sum of money faster than simple interest.
What is compounding and its job?When reinvested interest is used, compounding is a method for determining the total interest on the principal. It leads to an exponential increase in assets or capital for investors. Similarly, debtors face a significant burden when compound interest is applied to liabilities like debt.
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Increased access to workplace tools and information means work hours may be more _____________.
Answer:
flexible
Explanation:
thats my answer
Increased access to workplace tools and information means work hours may be more flexible.
What is workplace?Workplace refer to the place where an individual works and spend his most of the time in order to earn the money. The workplace should be clean and fewer hazards by nature in order to ensure safe working environment to the people of the organization.
The labor or the worker working in the factory is the example of the workplace. An employee works in the office. In recent times, people used to work from home instead of coming to the office.
In the workplace, there are strict rules and regulations to be followed by each and every individual to ensure the smooth running of the business and to maintain the decorum of the organization. The rules are some of each and every employee.
There is no such flexible hours of working as it depends on from organization to organization. However, the Work hours may be more flexible due to increased access to tools and information at the workplace.
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whan deciding how to invest your money which of the following is least important to know
When deciding how to invest your money, it's essential to consider several factors such as risk tolerance, investment goals, and time horizon.
However, the least important factor to know is probably the short-term market fluctuations.
Short-term market fluctuations refer to the daily ups and downs in the stock market or other investment platforms. While it can be tempting to focus on these fluctuations, they are generally not indicative of long-term performance and can lead to emotional, impulsive decisions that may not align with your investment strategy. Instead, it's more important to focus on factors that contribute to long-term growth and stability.
A sound investment strategy takes into account your risk tolerance, which is your ability and willingness to withstand potential losses. Additionally, clearly defined investment goals help you create a tailored plan that considers your specific objectives, such as saving for retirement or funding a child's education. Your time horizon, or the length of time you plan to invest, also plays a significant role in determining suitable investment options.
By prioritizing long-term factors like risk tolerance, investment goals, and time horizon, you can make more informed decisions that will ultimately lead to better financial outcomes. Remember that short-term market fluctuations can be distracting and are less important in the grand scheme of your investment journey.
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Describe how sales and consumer-related legislation and regulations affect the delivery of customer service
Health and safety legislation affects customer service delivery as it requires staff in an organization to ensure the safety of themselves and others, and act responsibly.
There are many perspectives like Changes to tax regulations and rates can have a significant impact on a business. For example, a fall in the rate of corporation tax reduces the amount of tax that corporations have to pay on their profits.
Customer service staff who deal with customers should know about the impacts and effects of legislation and regulations that protect the consumer when buying goods and services.
Governments issue regulations related to environmental practices, employee practices, advertising practices, and much more.
Government regulations affect how companies structure their businesses, where companies decide to locate, how they classify their employees and thousands of other things.
Environmental regulations, intended to protect human health and the environment, generally result in higher production costs and lower productivity in firms, which can lead them to shift investment and production to less stringent locations.
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Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Using the appropriate tool from the Accountant Tools menu, the 4 options that can be batch reclassified in QuickBooks Online Accountant are options A, B, C and F:
ClassesCustomersProducts and ServicesAccountWhat is QuickBooks Online Accountant?In the above question, too batch reclassify these items, you can use the "Batch Reclassify Transactions" tool, which can be found under the Accountant Tools menu.
This tool allows you to select multiple transactions and reclassify them to a different account, class, customer, or product/service.
Therefore, Locations, tax codes, and suppliers cannot be batch reclassified using this tool. However, you can edit individual transactions to change their location, tax code, or supplier if necessary.
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See full question below
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Classes
Customers
Products and Services
Locations
Tax Code
Account
Suppliers
If you put up $45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash flow be
The annual cash flow would be $4,755.18.
What would be the annual cash flows?The first step is to determine the future value of the lump sum amount: $45,000 x (1.064)^15 = $114,113.48
The second step is to determine the value of the equal cash flows. The formula that would be used is: future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
=[ (1.064)^15 - 1] / 0.064 = 23.97735
$114,113.48 / 23.97735 = $4,755.18
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Sunrise, Inc., has no debt outstanding and a total market value of $245,000. Earnings before interest and taxes, EBIT, are projected to be $19,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 25 percent higher. If there is a recession, then EBIT will be 40 percent lower. The company is considering a $58,800 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,000 shares outstanding. Ignore taxes for this problem. Assume the stock price is constant under all scenarios.
Required:
a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Also calculate the percentage changes in EPS when the economy expands or enters a recession.
b. Repeat part (a) assuming that the company goes through with recapitalization. What do you observe?
Answer:
Sunrise, Inc.
a. Earnings per share (EPS) under the three economic scenarios before debt is issued:
Scenarios EBIT EPS Percentage Changes
Normal $19,000 $3.80 ($19,000/5,000)
Expansion $23,750 $4.75 ($23,750/5,000) 25% ($0.95/$3.80 * 100)
Recession $11,400 $2.28 ($11,400/5,000) 40% ($1.52/$3.80 * 100)
b. After capitalization, Earnings per share (EPS) under the three economic scenarios:
Repurchase of stock = $58,800/$49 = 1,200 shares
Outstanding shares = 3,800 (5,000 - 1,200)
Interest expense = $4,700 approx.
Net Income (taxes ignored) = $14,300
Scenarios Net income
Normal $14,300 ($19,000 - $4,700 Interest)
Strong Expansion $17,875 ($14,300 * 1.25)
Recession $8,580 ($14,300 * 0.60)
Scenarios Net income EPS Percentage Changes
Normal $14,300 $3.76 ($14,300/3,800)
Expansion $17,875 $4.70 ($17,875/3,800) 25% ($0.94/$3.76 * 100)
Recession $8,580 $2.25 ($8,580/3,800) 40% ($1.51/$3.76 * 100)
Observation:
The EPS changed under each scenario when the debt was issued, but the percentage changes remained similar to the changes before the debt issue. This can be attributed to the change in the outstanding shares from 5,000 to 3,800. With the debt issue, the EBIT is not used in the calculations but the income after taxes.
Explanation:
a) Data and Calculations:
Total market value = $245,000
Outstanding shares = 5,000
Market price per share = $49 ($245,000/5,000)
EBIT (Earnings before interest and taxes) = $19,000 (normal economic condition)
Scenarios EBIT
Normal $19,000
Strong Expansion $23,750 ($19,000 * 1.25)
Recession $11,400 ($19,000 * 0.60)
Debit issue = $58,800
Interest rate of debt = 8%
Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process.
The impact of T‑shirts on annual GDP by calculating the value added of the entire production process is $1,625,000,000.
How do you determine the added value?The value added of the entire production process for T-shirts can be calculated by summing the value added by each stage of the production process.
Value added by the farmer = $0.75 (sale of cotton to mill)
Value added by the mill = $0.75 (sale of fabric to T-shirt factory) - $0.75 (cost of cotton from farmer) = $0
Value added by the T-shirt factory = $5 (sale of T-shirts to wholesaler) - $1.50 (cost of fabric from mill) = $3.50
Value added by the wholesaler = $10 (sale of T-shirts to Nordstrom) - $5 (cost of T-shirts from factory) = $5
Value added by Nordstrom = $17 (sale of T-shirts to customer) - $10 (cost of T-shirts from wholesaler) = $7
Therefore, the total value added by the entire production process is $0.75 + $0 + $3.50 + $5 + $7 = $16.25
The impact of T-shirts on annual GDP is $16.25 * 100 million T-shirts = $1,625,000,000.
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The United States financial system is attractive to international investors because _____.
(Select all that apply.)
1. the Federal Reserve oversees the system
2. the FDIC insurance bank deposits
3. risk is not high
4. it is a stable system
Answer:
1. the Federal Reserve oversees the system
2. the FDIC insurance bank deposits
4. it is a stable system
Explanation:
The United States financial system is attractive to international investors because the Federal Reserve oversees the system, the FDIC insurance bank deposits and it is a stable system.
Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B.
Calculate the value of goodwill recognized in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($).
Assume the current market value of tangible physical assets is $1,234,567 (determined by Company A as at the acquisition date) the current market value of the only identifiable intangible asset (a customer list) is $125,000 (determined by Company A as at the acquisition date) Operating (non-Financial) liabilities have an appraised value of $160,000 before and after the acquisition. Financial Liabilities were appraised by company B to be valued at $600,000 immediately Before the acquisition. Financial Liabilities were appraised by Company A to be valued at $495,000 immediately After the acquisition. There are no other assets or liabilities to consider than those presented above Company A paid $812,000 cash for Company B.
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
What are some strategies that you can use to prepare to file taxes each year? What would be
the benefits of these strategies?
1.) Name two alphabetic arrangements of subject records storage.
2.) Explain how the two arrangements are alike and how they differ?
Answer:
1.) An alphabetic listing of all subject titles used in the filing system
2.) Titles on the master index are used for filing and retrieving records
Andrew is a construction driver traveling two hours from his jobsite back to his home. He’s worked on site all week, but is not ill or fatigued. He doesn’t want this commute home to count as “on-duty” time. Can he use an exemption?
It depends on the regulations and exemptions set by the governing authority responsible for overseeing the commercial transportation industry in the region where Andrew is operating. In the United States, the Federal Motor Carrier Safety Administration (FMCSA) sets regulations for the commercial transportation industry, including those related to hours of service for commercial drivers.
What is the exemption about?Under FMCSA regulations, a driver who is not operating a commercial motor vehicle (CMV) and is not performing any work-related duties is considered to be in a personal conveyance status and is not subject to the hours of service regulations.
Therefore, In this case, if Andrew is driving his personal vehicle and is not engaged in any work-related duties during his two-hour commute, he may be able to use the personal conveyance exemption and not have this time counted as "on-duty" time. However, it is important to check the specific regulations and exemptions in his region to ensure compliance.
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