All of the following statements about balance sheets are true: i) an itemization of all of a firm's assets, liabilities, and equity as of the balance sheet date ii) assets are reported at historical cost iii) balance sheets show average asset balances over a one-year period iv) a balance sheet reports a company's financial position at a specific point in time O i, ii & iv O i, ii & iii ○ ii, iii & iv O i, ii, iii & iv

Q: Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable…

A: To increase sales there is need investment in assets and that investment can be managed internally…

Q: True/False) All of the regulations for Section 162 are proposed regulations.

A: The general rule for section 162 states that "A deduction of ordinary and necessary expenses paid or…

Q: Legal expenses incurred by a company to provide general legal advice is an allowable deduction under…

A: The Income Tax Act defines the tax that is being collected by the Central government charged on the…

Q: P12.2 (c)

A: Ending Retained Earnings  = Beginning Retained Earnings  + Net income - dividend declared…

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A: To calculate the change in Operating Working Capital (OWC) during Year 2, you need to consider…

Q: Explain how the § 179 immediate expensing deduction affects the computation of MACRS cost recovery.

A: Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts    1. Cash Account Particular Debit Particular Credit         To capital A/c…

Q: 8. If money is worth (.06, m = 4), find the present value of a perpetuity $1000, paid semi-annually,…

A: Present value of perpetuity is the value of an asset whose cash flow is received forever.

Q: According to IAS 1, what are the classification of liabilities? O Current, noncurrent, estimated and…

A: Answer -   According to IAS 1 - Liabilities are basically classified as Current and Non Current…

Q: answer for the last one: The VAT Payable a.61,065 b. 69,815

A: The first 3 questions answers are provided in original question.

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A: 1. Per Capita Equalization Principle: This principle stipulates that each state or region should…

Q: Please answer sections d), e) and f)

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A: Commodity certificate:   It is a payment method used by a commodity credit corporation in lieu of…

Q: Question 8

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Q: (Optional) Consider the following assets: Asset | A E(r) Cov(A) Cov(B) Cov(X) Cov(Y) Cov(Z) В Y Z…

A: Given, Portfolio P consists of assets A and B. Portfolio Q consists of assets X, Y and Z.

Q: What is the binary representation for 13 in decimal? a. 1110 b. 1111 c. 1100 d. 1101

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A: IFRS (International Financial Reporting Standards):IFRS is a set of accounting standards developed…

Q: Finding Regulations. All of the regulations relating to §280A (concerning the home office deduction)…

A: Finding Regulations. All of the regulations relating to §280A (concerning the home office deduction)…

Q: Explanation 1031 like-kind exchange

A:

Q: Required b only, thank you!

A: Journal entries are the entries to be recorded in the accounting books of the business for all the…

Q: 1(1.25)/1.1+[1(1.25)3/(0.10-0.06)]/1.1 Simply the equation.

A: 1(1.25)/1.1+[1(1.25)3/(0.10-0.06)]/1.1

Q: Carefully explain the cross-sectional test of the CAPM.

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the relationship…

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Q: What is Break Even Point?

A: BEP is called as break even point. Formula: Break even point = Fixed cost / Contribution per unit

Q: The answer is somewhat close. The right answer is 1.5337 Please clarify

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A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

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A: Origination Fees: It is the fees charged by the bank against the borrower for the creation of loan.…

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A: Financial derivatives known as call options and put options provide the holder the right, but not…

Q: So the answer is  1394 or2450?

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Q: Sunland Company's balance sheet shows: Common stock, $20 par $3,200,000 Paid-in capital in excess of…

A: Treasury stocks are repurchased shares of the company. The company has the power to reissue these…

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Q: Problem 9-12 (IAA)

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: 4. What is sensitivity analysis?

A: What Is Sensitivity Analysis?

Q: 6. Explain: "agency debt"

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A: ROI = Total net income/Total operating assets

Q: Please provide answer to questions a to c

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Q: E9.9 (a)

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A: Accounts are generally classified into 5 categories: Assets account Liabilities account Capital…

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A: A Bill of exchange is a written agreement/order given by one party to the other for an agreed amount…

Q: Please answer section d) only

A: Degree of combined leverage (DCL) It is a leverage ratio that includes the combined effects, caused…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.