The tax treatment regarding the sale of existing assets that are sold for their book value results in ________
A) an ordinary tax benefit
B) no tax benefit or liability
C) recaptured depreciation taxed as ordinary income
D) a capital gain tax liability and recaptured depreciation taxed as ordinary income
B
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Midtown, Inc. had the following transactions in 2018, its first year of operations:
• Issued 31,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $20.00 per share. • Earned net income of $70,000. • Paid no dividends. At the end of 2018, what is total stockholders' equity? A) $31,000 B) $690,000 C) $620,000 D) $70,000
Cost-volume-profit analysis cannot be used to estimate a targeted profit for service businesses
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The most effective method of communication is tweeting. 2. The acronym IMC refers to integrated marketing communication. 3. The acronym CRAM involves promising results and changing attitudes. 4. Nonprofit organizations can enhance interaction with clients using static websites. 5. The terms “social media” and “social networking” may be used interchangeably. 6. According to McCambridge, nonprofit organizations need to perform the role of information gatekeepers.
Service firms cannot use job order costing for determining a selling price for their services.
Answer the following statement true (T) or false (F)