The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis of the building was $80,000, Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss. It cost her $152,000 to rebuild the store in the current year
a. Calculate Donna's recognized gain, assuming an election under the involuntary conversion provision is made. $__________
b. Calculate Donna's basis in the replacement building. $__________
a. A gain of $80,000 was realized, but only $8,000 (the amount not reinvested) was recognized.
b. Although the new building cost $152,000, $72,000 of realized gain was deferred (not recognized) and the building cost minus the deferred gain results in a basis of $80,000 for the replacement building.
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Which businesses typically need a personal guaranty in order to receive a loan?
A. almost all businesses B. small businesses C. no businesses (Businesses do not need personal guaranties.) D. large businesses
The advantage of benchmarking against your own best employees as you hire new people is ______.
a. You can use you best as a template for hiring new people. b. You can learn what organizations in other industries are doing. c. It helps develop an employee compensation program. d. It aids in the design of your organization’s benchmarking system.
LeBlanc Manufacturing has the following product information available: Sales price $60 per unit Variable costs $20 per unit Fixed costs $50,000 If LeBlanc is in the 30% tax bracket, how many units need to be sold in order to earn an after-tax target profit of $490,000?
A) 17,500 units B) 18,750 units C) 19,286 units D) 9,450 units
A large department store has collected the following monthly data on lost sales revenue due to theft and the number of security guard hours on duty:
Lost Sales Revenue ($000s) Total Security Guard hours Lost Sales Revenue ($000s) Total Security Guard hours 1.0 600 1.8 950 1.4 630 2.1 1300 1.9 1000 2.3 1350 2.0 1200 (a) Determine the least squares regression equation. (b) Using the results of part (a), find the estimated lost sales revenues if the total number of security guard hours is 800. (c) Calculate the coefficient of correlation. (d) Calculate the coefficient of determination.