Calculate the tax effect from the sale of the existing asset. (See Table 11.4)
What will be an ideal response?
Tax:
$105,000 - $100,000 = $5,000 capital gain × 0.4 = $2,000
$ 52,000 recaptured depreciation × 0.4 = 20,800
Total tax liability $22,800
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Splitting an activity can result in all of the following EXCEPT
A. A better project schedule. B. Possible startup and shutdown costs. C. More people working on the same activity. D. Activity work being placed on hold for a period until more resources are available. E. A resource being moved from one activity to another and then back.
At December 31, Year 1, Adam Corporation has 5,000 shares of par value common stock, additional paid-in capital of $25,000, total shareholders' equity of $80,000, and retained earnings of $45,000 . What is the par value per share?
a. $1.00 b. $1.50 c. $2.00 d. $2.50 e. $3.00
When a provision in a contract is unclear by accident, it is a case of
a. vagueness. b. mistake. c. ambiguity. d. condition.
FedEx chose Memphis, Tennessee, as its U.S. hub because:
A) the city is in the center of the United States, geographically. B) the airport has relatively few hours of bad weather closures. C) it needed a means to reach cities to which it did not have direct flights. D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. E) All of the above are true.