You want to purchase a residential property. You have found the property that fits your needs. However, it is registered in the name of a Close Corporation. You have the choice of either purchasing the property out of the Close Corporation for an amount of R2 million or purchasing the member’s interest in the Close Corporation for R2 million. What factors should you take into account (including capital gains tax) in deciding which route to follow? (10)
Answers
When deciding between purchasing the property out of the Close Corporation or buying the member's interest, factors to consider include capital gains tax implications.
Legal and administrative costs, potential liabilities, and future flexibility in managing the property. Purchasing the property out of the Close Corporation for R2 million means transferring ownership directly. In this case, you need to consider potential capital gains tax (CGT) liabilities. CGT is calculated on the difference between the purchase price and the property's current market value, and you may be liable to pay tax on the gain. On the other hand, buying the member's interest in the Close Corporation involves acquiring the entire entity, including assets and liabilities. This option might have legal and administrative costs associated with transferring ownership. However, it may provide more flexibility in managing the property and potentially allow for more tax-efficient strategies in the future.
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Related Questions
whats the different between income effect and substitution effect
Answers
The substitution effect looks at the change in price of a good relative to other goods. The income effect looks at how a change in price affects real disposable income.
What is the income and substitution effect?The two effects that lead to a change in the quantity demanded of a good are the income and the substitution effects.
If the price of a good rises, the good becomes more expensive relative to its substitutes. Consumers now consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve. This is the substitution effect.
The income effect looks at the change in the price of a good on real disposable income. If the price of a good increases, the real purchasing power of a consumer declines holding income constant. As a result, the consumer would have to reduce the quantity of the good demanded.
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If a revenue in total for a month was $9,550, fixed expenses were $9,000 and variable expenses were $300 what would be the total profit/loss for the month?
Answers
Answer:
the answer would be 250
because 9,000-9,550 = 550 -300= 230
A genuine free market requires restrictions on the ability of predator multinationals to create monopolies. True or False
Answers
Answer:
True
Explanation:
A free market, in normal terms does not permit the formation of monopolies seen as competition, and is also one of the characteristics of market that is free that are not obstructed, pure, by any involvement or interference from the government.
Therefore there is a possibility for predator multinationals to create or form monopolies.
During the ____ , deliverables are accepted by the sponsoring organization or client, and historical information is transferred and archived. planning initiation closeout execution maintenance
Answers
It is during the Closeout that deliverables that are sponsored by an organization become accepted.
What Is Closeout?closeout or clearance sale is a discount sale of inventotry by the seller because of low demand in of product or because the seller is relocating or closing ort because of bankruptcy or there is too much order on the product.
Therefore, During the Closeout, deliverables are accepted by the sponsoring organization or client, and historical information is transferred and archived. planning initiation closeout execution maintenance.
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Agent Harriet Walker has recently begun marketing Medicare Advantage and related products aimed at meeting the needs of senior citizens. Client Mildred Jones has expressed interest in a Medicare Advantage plan. It is now the beginning of September. If you were in Agent Walker's position, what would you do?
Answers
Answer:
Inquire whether the client qualifies for a special enrollment period, and if not, solicit an enrollment application once the annual open enrollment election period begins on October 15th.
Explanation:
In this scenario where Agent Harriet Walker is marketing Medicare Advantage and related products aimed at meeting the needs of senior citizens.
If Client Mildred Jones has expressed interest in a Medicare Advantage plan and it is now the beginning of September.
The best action is to enroll her of she qualifies for special enrollment period.
If she is not qualified she should solicit an enrollment application once the annual open enrollment election period begins on October 15th.
Harriet should keep engaging Mildred's interest till 15th October.
Rashida purchased a machine for $5600. She sold it six years later for $500. At that date, the
provision for depreciation had a credit balance of $5040.
What entry was made in the income statement?
A credit $60
B debit $60
C credit $560
D debit $560
Answers
The entry made in the income statement in this scenario would be a debit of $560. So, the correct answer is D debit $560.
The provision for depreciation represents the accumulated depreciation of the machine over the six-year period. Since the provision had a credit balance of $5040 at the time of sale, it means that the total depreciation expense recognized over the six years was $5040.
To calculate the depreciation expense per year, we divide the total accumulated depreciation by the number of years (6). So, the annual depreciation expense is $5040/6 = $840.
When Rashida sold the machine for $500, it implies that the machine's carrying value or book value was reduced to $500. To account for this loss on disposal, the income statement entry will be a debit to Depreciation Expense for the remaining balance of the machine's book value, which is $840 - $500 = $340.
However, since the question asks for the specific entry made in the income statement, the amount to be debited will be the difference between the machine's original cost and its book value at the time of sale, which is $5600 - $500 = $5100.
Hence, the entry in the income statement will be a debit of $5600 - $500 = $5100. So, the correct answer is D debit $560.
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effective project management pushes decision making down in the organization
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Effective project management is essential for successful project completion. It involves careful planning, communication, and coordination of resources, including people, time, and budget. One important aspect of effective project management is the delegation of decision-making authority throughout the organization.
By pushing decision-making down in the organization, effective project management empowers team members to take ownership of their tasks and make informed decisions that align with project objectives. This helps to ensure that decisions are made quickly and efficiently, without the need for constant input from higher-ups. Delegating decision-making authority also fosters a sense of accountability among team members, as they are held responsible for the outcomes of their decisions. This encourages them to take ownership of their work and strive for excellence in their performance. In summary, effective project management involves a well-structured approach to planning, communication, and coordination of resources, which includes delegating decision-making authority throughout the organization. This helps to promote accountability, efficiency, and a sense of ownership among team members, leading to successful project completion.
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one reason tennis has become popular is because? A. it takes a long time to play the game B. almost anyone can play C. scoring is easy to figure out D. it is a contact sport
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The one reason tennis has become popular is because is: B. almost anyone can play.
What are the reasons tennis has become popular?Tennis can be defined as a kind of sport that can be played by people of different ages, genders, and skill levels, making it accessible to a wide range of individuals.
This, combined with its relatively low cost of entry, has contributed to its popularity.
Therefore we can conclude that the correct option is B based on the fact that almost anyone can play tennis.
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which type of chart would you create to compare expenses in each department as a percentage of all expenses?
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Based on the information given, the best chart that can be used to represent the scenario will be an exploded pie chart.
A pie chart simply refers to a type of graph that's is used in displaying the data in a circular graph. In this case, the pieces are proportional to their fractions.
The exploded pie chart can be used in comparing the expenses in each department as a percentage of all expenses.
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Earning and Spending Unit Test
What is typically included in COGS? (1 point)
O raw materials
O storage costs for the inventory
O wages associated with creating the item
O All of the answers are correct.
Answers
Answer:
all the answers are correct
Explanation:
The cost of goods sold include raw materials, storage cost for inventory, and wages. The correct option is D.
COGS include raw materials, inventory storage costs, and wages associated with creating the item. D is the correct answer.
What is covered by a service provider's COGS?It encompasses any expense directly related to creating a good or providing a service. These expenses can cover labour, supplies, and shipping. The goal of COGS is to quantify all variable expenses that are directly related to producing a good or providing a service.All direct expenses incurred to produce the goods a business sells are included in COGS. The majority of these expenses are the product's variable manufacturing costs, such materials and labour, although others may be fixed expenses, like factory overhead.Costs of Goods Sold (COGS) are the expenses incurred over a specific time period to produce your goods. COGS is calculated as starting inventory less purchases minus ending inventory.To Learn more About COGS, Refer:
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i need help answering theses
Answers
Answer:
I don't know what to be my adopted father and son are you kidding me I don't know what to say to be my adopted father and son are you kidding me
Discuss reasons why a business needs funding ?
Answers
Answer:
Firms need finance to:
start up a business, eg pay for premises, new equipment and advertising.
run the business, eg having enough cash to pay staff wages and suppliers on time.
expand the business, eg having funds to pay for a new branch in a different city or country.
2. The courts have ruled in favor of using reverse engineering to:
a. allow the domination of a particular software market by a single manufacturer
b. provide access to protected elements of an original work
c. circumvent restrictive trade secrets
d. enable interoperability
Answers
The courts have ruled in favor of using reverse engineering to enable interoperability.
Reverse engineering refers to the process of analyzing a product or system to understand its components, structure, and functionality, often by disassembling or deconstructing it. It can be a valuable tool for achieving interoperability, which is the ability of different systems or products to work together and communicate effectively.
Courts have ruled in favor of using reverse engineering to enable interoperability because it promotes competition and innovation. It allows developers to understand and access the protected elements of an original work in order to create compatible products or systems that can interact with it. This helps to avoid monopolistic practices, fosters competition in the market, and provides consumers with more choices.
Therefore, the correct statement is that courts have ruled in favor of using reverse engineering to enable interoperability.
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compare the after-tax returns for a corporation that invests in preferred stock with a 12% dividend yield versus a common stock with no dividend but a 16% capital gain. the corporation's tax rate is 21%. the: multiple choice common stock returns 2.32% less than the preferred. common stock returns 2.60% less than the preferred. preferred stock returns 1.90% less than the common. returns are equal on an after-tax basis.
Answers
The corporation's tax rate is 35%. The preferred stock returns 1.90% more than the common
A different kind of equity known as preferred stock gives investors ownership in a firm and the right to receive income from that company's operations. In comparison to common stockholders, preferred stockholders have a stronger entitlement to distributions (such as dividends). In terms of corporate governance, preferred stockholders typically have no or few voting rights.
Preferred stocks provide a company with an alternative source of funding, such as pension-led funding. In some circumstances, a company can delay dividend payments by falling behind on payments with little penalty or risk to its credit rating, but such a move may make it more difficult for the company to meet the terms of its financing agreement.
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There is a growing movement in the United States led by the progressive wing of the Democratic Party to have the federal minimum wage raised to $15/hr. Some people agree with the $15/hr minimum wage for the United States, while others oppose raising the minimum wage. The arguments against raising the minimum wage range from the government should not dictate salaries to it will cause low wage workers to lose their jobs since businesses cannot afford a $15/hr minimum wage.
Do you agree with a $15/hr federal minimum wage? The current federal minimum wage in the United States is $7.25/hr. Fully explain your position on this issue in 2 - 3 paragraphs.
Source: Surviving an Unlivable Wage l Full Documentary (Financial Literacy)
Answers
In my opinion, minimum wage should be increased because an increase in minimum wage would reduce poverty, increase consumer spending, and promote economic growth.
Why Should Minimum Wage be Increased?Minimum wage has not kept pace with inflation, and that the current federal minimum wage of $7.25/hr is not a living wage in most parts of the United States. A $15/hr minimum wage would provide a more realistic living wage for many low-wage workers, but there is disagreement on whether this should be achieved through federal legislation or through individual state action.
Ultimately, whether or not to raise the minimum wage is a complex issue that involves balancing the needs of workers, businesses, and the overall economy. It is important for policymakers to carefully consider the potential impacts of any minimum wage increase and to find ways to support low-wage workers without unduly burdening businesses.
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Describe two factors that have led to the greater interconnectedness of countries.
Answers
Answer:
1. Liberalization of foreign trade and foreign investment policies
2. Information technology
Explanation:
1. Liberalization of foreign trade and foreign investment policies. Trade liberalization means removing constraint or impediments to free flow of trade among countries in the world. It enables import and export to take place hence led to interconnectedness of countries.
Also, foreign companies are allowed and able to locate their business outlet in their host country. Due to foreign investment policies, there is fusion of market and production thus leading to interconnectedness of countries.
2. Information technology. Constant improvement in information technology has led to interconnectedness of countries. For instance, the use of internet(social media) comes at a lower cost hence messages can be sent from a remote area and goes viral around the world immediately it is sent.
Also telecommunication gadgets such as mobile phones, telegraphs, fax connects people and business across several race and continents.
What kind of documents does Publisher handle best?
Term Paper
Newsletter
Customer List
Balance Sheet
Answers
If correct mark please! Have a nice daub
(100 POINTS)How much money will i make my first week from dropshipping
Answers
Find an article dealing with an opinion poll on a local, state ,or national issue. Write a paragraph summary of when and how the poll was conducted, and what the results indicated.
Answers
According to a CNN poll conducted in early February 2021, 69% of Americans approve of President Joe Biden's handling of the COVID-19 pandemic. The poll was conducted by SSRS, a research firm that specializes in survey research. The poll surveyed 1,004 adults across the United States and had a margin of error of plus or minus 3.7 percentage points. The poll also found that 60% of Americans believe that the worst of the pandemic is yet to come, despite the country's recent progress in vaccine distribution. Additionally, 93% of respondents said they have worn a mask in public in the past week, a sharp increase from similar polls conducted last year. The poll's results indicate that the majority of Americans are supportive of the current administration's efforts to combat the ongoing pandemic
If Marco decides to sell his pet products through an online distribution company, such as Amazon, then what type of intermediary is this
Answers
Based on the type of business that Amazon engages in, we can conclude that they are Retailers.
A retail intermediary:
Sells directly to the customer Buys goods from wholesalers and producers Also buys from individuals who wish to sell goodsMarco is hoping to sell his pet products through an online distribution company which would make him a wholesaler and the company he sells through will be a retailer as a result.
In conclusion, this intermediary is a retailer.
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Where is the best minitaxi in London for tourisms?.
Answers
Patrick Egwu Transportation
Explanation:
character is understanding the interests of others, cultivating a sense of community, and demonstrating accountability.
Answers
Character is understanding the interests of others, cultivating a sense of community, and demonstrating accountability. These three characteristics define the concept of character. The following are the characteristics of character:
Trustworthiness: A trustworthy person is one who is honest, has integrity, and is reliable. Respect: Respect is treating others with kindness and dignity. Responsibility: Responsibility is taking responsibility for one's actions, being accountable for one's actions, and making good decisions. Fairness: Fairness is treating everyone equally and not allowing personal biases to influence decisions or actions. Caring: Caring is being empathetic towards others, showing compassion, and helping others. Citizenship: Citizenship involves being an active member of one's community and contributing to its betterment.
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1. what is a major risk of using a financial institution? (1 point) the financial institution may fail entirely. financial institutions may choose not to pay investors back. investors can be unable to withdraw money when they need it. insurance will not cover any losses incurred by a financial institution.
Answers
The major risk of using a financial institution is that the institution may fail entirely, which means that investors could lose their money.
While there are regulations and safety nets in place to prevent this from happening, such as FDIC insurance for banks, there is still a risk that the institution may not be able to pay investors back. Additionally, investors may not be able to withdraw their money when they need it if the institution experiences financial difficulties. Therefore, it is important for investors to carefully research and choose a reputable financial institution to minimize these risks.
A major risk of using a financial institution is that the financial institution may fail entirely, which could potentially make it difficult for investors to withdraw money when they need it.
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In
, people invest money in a company in exchange for the company’s
.
Answers
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
hello im Michal the fox how may tails i have three,two or,four
Answers
Answer:
2
Explanation:
5 Ayesha is a business adviser. Her financial year ends on 30 September. She provided the following trial balance at 30 September 20-3: $ Capital $ Drawings 15200 125000 Premises 95 000 Office equipment Fees from clients 21600 Insurance 3110 Printing and stationery 2480 Wages Office expenses 59 650 3120 Rent receivable Trade receivables 6150 6000 9510 Bank overdraft Cash 65950 150 206460 206460 Prepare Ayesha's income statement for the year ended 30 September 20-3 and a statement of financial position at 30 September 20-3.
Answers
From the income statement, the net profit is $49,870(loss), the total assets is $181,250 and the total liabilities is $125,000
What is the income statementFees from clients: $21,600
Expenses:
Wages: $59,650
Rent: $3,120
Office expenses: $3,110
Printing and stationery: $2,480
Insurance: $3,110
Total expenses: $71,470
Net profit: $21,600 - $71,470 = -$49,870 (Loss)
Statement of Financial Position at 30 September 20-3:
Assets:
Premises: $95,000
Office equipment: $6,000
Rent receivable: $6150
Trade receivables: $6,000
Bank overdraft: $65,950
Cash: $150
Total assets: $181,250
Liabilities:
Drawings: $125,000
Capital:
Capital balance: $15,200
Total liabilities and capital: $181,250
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If a picture is too large for a place holder, it will __________.
A. crop itself to fit inside of a placeholder
B. make the placeholder bigger
C. resize itself to match just the height of the place holder
Answers
if the picture is too large for the placeholder it will crop to the size of the placeholder. Thus the correct option is A.
What is place holder?A fictional picture used as a replacement is intended to highlight the requirement for a real image. Photographs and their arrangement can be better understood and interpreted by using placeholders.
Rectangular boxes on the screen's right side can be clicked to insert the necessary presentation media. Editors can quickly insert slide presentations including text, images, and videos using the placeholders.
Therefore, option A is appropriate.
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Answer:
If the picture is too large for the placeholder it will crop to the size of the placeholder.
Explanation:
The sales of Sherwin-Williams paint in different regional markets depends on several input variables. One variable that partially drives selling price, which in turn affects sales, is the cost to get the product to market. When other input variables are held constant, sales can be modeled as
when it costs x dollars to get a gallon of paint to market, data from 0 ≤ x ≤ 2.
(Source: Based on data from Sherwin-Williams as reported in J. McGuigan et al., Managerial Economics, Stamford, CT: Cengage, 2008)
a. How many gallons of paint are sold when it costs 75 cents for a gallon to reach the market?
b. How quickly is sales changing when x = 0.75?
Answers
a.18.5 gallons of paint are sold when it costs $0.75 for a gallon of paint to reach the market
b. when x = 0.75, the rate at which the sales of paint is changing is -23.
a.Based on the data from Sherwin-Williams as reported in J. McGuigan et al., Managerial Economics, Stamford, CT: Cengage, 2008, the sales of paint are given byS(x) = 8 + 16x − 25x2.
In this scenario, the value of x is 0.75 as the cost to get a gallon of paint to the market is $0.75 per gallon.
Then, the number of gallons of paint that are sold is given by substituting x = 0.75 in the sales equation.
S(x = 0.75) = 8 + 16(0.75) − 25(0.75)2= 18.5
Therefore, 18.5 gallons of paint are sold when it costs $0.75 for a gallon of paint to reach the market
b. The rate at which the sales of paint is changing at x = 0.75 is given by the derivative of the sales equation with respect to x.
dS/dx = 16 − 50x.
Substituting x = 0.75 in the above expression gives:dS/dx (x = 0.75) = 16 − 50(0.75) = −23.
Therefore, when x = 0.75, the rate at which the sales of paint is changing is -23.
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According to the concept of the invisible hand, what emerges due to the self-interested
choices of buyers and sellers in a free market?
Answers
Answer: The invisible hand is a metaphor for how, in a free market economy, self-interested individuals can promote the general benefit of society at large.
How do I do this? I think I know how But I am not 100% sure! Thanks in advance! I will mark answer the Branliest! Calculate the break-even level of customers needed.
Answers
Answer:
Break-even point in unit = 250 units
Explanation:
Given:
Fixed cost = $500
Variable cost = $2
Number of customer = 325
Sales amount = $4
Find:
Break-even point
Computation:
Break-even point in unit = Fixed cost / (SP - VC)
Break-even point in unit = 500 / ($4 - $2)
Break-even point in unit = 250 units