Financial theory has at last provided us with a single optimal capital structure for domestic firms

Indicate whether the statement is true or false.


Answer: FALSE

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A corporation is liable for all torts committed by its employees while acting in the course of and within the scope of their employment.

Answer the following statement true (T) or false (F)

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Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods12%10.892921.690132.401843.0373  What is the net present value of the machine?

A. $30,000. B. $(3,100). C. $26,900. D. $24,018. E. $(29,520).

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Closed facts are especially conducive to tax planning.

Answer the following statement true (T) or false (F)

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For a taxpayer to be engaged in a trade or business, the activity must meet all of the following tests: it must produce a profit every year; must be continuous and regular activity; and must be the taxpayer's livelihood not their hobby

a. True b. False Indicate whether the statement is true or false

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