A buyer generally prefers an asset sale to get better depreciation deductions post sale. True False
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- Gowns a Business Overhead Expense policy with a monthly benefit of $5,000. G pays an annual premium on January 1. On June 1 of the same year, G sells the later, G becomes disabled as the result of a fall. In this situation, which of the following monthly benefits, will Greceive? O A OC D. $10,000 $5,000 $2,500 $0b) In the first price sealed bid auction, a player gets a positive payoff by doing bid shadingExplain the tradeoff between biding lower than the value of the object and biding very close to value of the object.Investment X offers to pay you $4,500 peryear for nine years, whereas Investment Y offers to pay you $7,000 per year for fiveyears. Which of these cash flow streams has the higher present value if the discountrate is 5 percent? If the discount rate is 22 percent?
- Decline in value through market fluctuation of investments in stock of a corporation is not a deductible loss. True or FalseGive the options or list that can be inappropriate for the the client in lending and explain both.You are a corn producer. Today, May 1, you have planted corn and you expect a crop of over 1,500,000 bushels. You would like to sell the crop soon after the October harvest. You are fairly certain that prices are heading down, so you want to lock in a price for December delivery. The performance bond deposit of $1,000.00 per contract and possible performance bond calls will not cause you a cash-flow problem. You decide to sell three hundred December corn futures contracts (5,000 bushels each, or 1,500,000 bushels). The December futures price today is $5.6125 and the local forward cash for December is $5.2125. Brokerage fees for each contract is $25.00 round-turn. In December, futures prices have fallen to $5.6000 and cash prices to $5.2000. Date Cash Market Futures Market Basis May December Results In May do you take a long or short position in the futures market? In December, what do you do in the futures market?…
- In a subprime loan, interest rates are: equal to prime loan rates unrelated to a borrower's credit score higher than prime loan rates lower than prime loan ratesTrue or false? The lessee is the party who holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.What is the main reason lenders pay borrowers' property taxes through a pre-paid escrow account? It prevents a tax lien from being applied to the home. The tax lien would be senior to the mortgage lien. It prevents the borrower from refinancing with another lender because they would lose all of their escrow funds. It allows the lender to earn interest on the pre- paid tax money as itsits in the account. It allows the lender to take advantage of corporate tax deductions.