Duo Partnership reports the following items for the year:Sales$750,000Wage expense300,000Rent expense50,000Charitable contributions10,000Short-term capital gain20,000Sec. 179 expense100,000In addition to reporting separately stated items on the Form 1065, Duo will report ordinary income of
A. $310,000.
B. $400,000.
C. $300,000.
D. $420,000.
Answer: B
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A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit
If annual demand is expected to be 10 million units, which plant offers the lowest total cost? A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. B) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. C) Plant A, because it is cheaper than Plant B for all volumes. D) Plant B, because it has the lower variable cost per unit. E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.
In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties
Indicate whether the statement is true or false
Compounding refers to the
A) mistake of confusing present values with future values. B) process of accumulating value over time. C) task of finding a present value. D) projection of future payments.
Tiff Corporation has provided the following data concerning a proposed investment project (Ignore income taxes.): Initial investment$960,000 Life of the project 5yearsWorking capital required$20,000 Annual net cash inflows$288,000 Salvage value$144,000 The company uses a discount rate of 16%. The working capital would be released at the end of the project.See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.Required:Compute the net present value of the project.
What will be an ideal response?