Cascade Supply Company reported Interest expense of $8,500, Income tax expense of $26,400 and Net income of $110,000. Cascade's interest coverage ratio is: (Round your final answer to three decimal places.)
A) 16.047.
B) 17.047.
C) 0.059.
D) 0.062.
B) 17.047.
Explanation: to find EBIT, add interest and income tax expense to net income, then take EBIT/interest expense. Ex: ($8,500 + $26,400 + $110,000) / $8,500 = 17.047
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The building used in Terry's business was condemned by the city of St. Louis. Terry received a condemnation award of $125,000. He paid $1,200 in lawyer's fees and $800 for an appraisal of the property. Terry's adjusted basis in the building was $60,000. Terry reinvests in similar property costing $110,000, and Terry makes the proper election regarding the property. What is the amount of Terry's recognized gain on the condemnation?
A. $50,000 B. $13,000 C. $15,000 D. $63,000
Which of the following is designed to stop speculative insider trading on the basis of insider information?
A. Wash sale B. Certificate of interest of participation C. Regulation of short-swing profits D. Blue sky laws
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