A partnership is an unincorporated business activity owned by at least two taxpayers.
Answer the following statement true (T) or false (F)
True
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On-The-Job Training ______.
a. is best done by observing the experienced workers b. is typically conducted by departmental managers c. does not need to be planned because it uses experienced personnel d. forces new employees to “sink or swim”
Benston, Bromwich, and Wagenhofer believe that the principles-based approach would work better in tandem with:
a. a fair value measurement orientation. b. a revenue-expense orientation. c. an asset-liability orientation. d. all of the above.
Liz has a dream to be an accomplished piano player. However, something is impeding her progress toward this goal. Liz works hard when she sits down at the piano, and she knows exactly what and how to practice the piano. The problem seems to be she does not practice consistently and on a set schedule. She only practices when she feels like it. According to this scenario, what element of motivation is Liz missing?
a. Energy b. Direction c. Maintenance d. Leadership
Kohers Inc. is considering a leasing arrangement to finance some manufacturing tools that it needs for the next 3 years. The tools will be obsolete and worthless after 3 years. The firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. It can borrow $5,400,000, the purchase price, at 9.6% and buy the tools, or it can make 3 equal end-of-year lease payments of $1,900,000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan, with interest paid at the end of the year. The firm's tax rate is 40%. Annual maintenance costs associated with ownership are estimated at $240,000 payable at the end of the year, but this cost would be borne by the lessor if the equipment were leased. What is the net advantage to leasing (NAL), in
thousands? (Suggestion: Delete 3 zeros from dollars and work in thousands.) Do not round your intermediate calculations. A. $634 B. $793 C. $674 D. $872 E. $951