OWB Inc. and Owin Inc. are owned by the same family. OWB's marginal tax rate is 30%, and Owin's marginal tax rate is 21%. OWB has the opportunity to engage in a transaction that will generate $250,000 taxable cash flow. Alternatively, Owin could engage in the transaction. However, Owin would incur an extra $60,000 deductible cash expense with respect to the transaction. Which of the following statements is true?
A. Owin should engage in the transaction because it has the lower marginal tax rate.
B. OWB should engage in the transaction to avoid the extra expense.
C. Because OWB and Owin are owned by the same family, the family is indifferent as to which corporation engages in the transaction.
D. OWB should engage in the transaction to generate $24,900 more after-tax cash flow.
Answer: D
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Ann Co uses the dollar-value LIFO retail method. The beginning inventory, purchased when the price index was 100, had a retail value of $4,000 and a cost of $3,600. During the period, purchases amounted to $60,000 at retail ($52,800 at cost). Sales amounted to $56,300. The year-end price index was 110. What is the cost of ending inventory?
A) $6,240 B) $6,504 C) $6,570 D) $6,900
The parallel threshold method differs from the other two non-hierarchical clustering procedures in that the objects can later be reassigned to clusters to optimize an overall criterion
Indicate whether the statement is true or false
A company is faced with the challenge of communicating to its employees a significant change in its policies. Which of the following suggestions should the management follow to communicate this change to its employees effectively??
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Annual stock market returns during the period 2000-2006 were fairly stable
Indicate whether the statement is true or false.