The three Crosby children intend to form a business. The business will borrow $900,000 from a local bank. Which of the following statements is true?
A. Regardless of whether the business is a partnership or an S corporation, the owners will include the bank debt in the tax basis of their ownership interests.
B. If the business is an S corporation, the owners can allocate income and losses in any reasonable manner.
C. From a liability standpoint, the owners should be indifferent as to whether they are a general partnership or an S corporation.
D. If the business is a partnership the owners can allocate income and losses in any reasonable manner.
Answer: D
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Zippy Shoe Co. uses a periodic inventory system. Zippy purchased 400 pairs of shoes at $74 each in June, 980 pairs in August at $76 each, and 600 pairs in December at $79 each. Zippy sold 1,860 pairs of shoes during the year.Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods.a. FIFO ????b. LIFO ????c. Weighted Average (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)????
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. Organizational structure is an incredibly important, yet often overlooked, component of the success or failure of a business. 2. A new focus on “adaptive organizations” suggests that firms that are able to change their structure rapidly in response to environmental and competitive challenges are more likely to sustain long-term profitability. 3. The functional structure is the only efficient way to organize. 4. Organizing is the management function of assigning activities and grouping people so organizational objectives can be achieved. 5. As a manager, you can observe what your competitors are doing, but you should arrange your structure in such a way that best utilizes your firm, your employees, and your customers.
Net requirements is calculated as ______.
a. Gross requirements + on-hand inventory b. Gross requirements – on-hand inventory c. Gross requirements x on-hand inventory d. Gross requirements ÷ on-hand inventory
Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. ? Risk-adjusted WACC10.0% Net investment cost (depreciable basis)$65,000 Straight-line depr. rate33.3333% Sales revenues, each year$71,500 Annual operating costs (excl. depr.)$25,000 Tax rate35.0% ?
A. $25,831 B. $33,377 C. $34,828 D. $29,023 E. $22,928