Homework Answers
Capital Gain is a correct answer.
Capital Gain is the gain by selling capital assets such as capital equipment, buildings, Investments etc. , It is the difference between Initial cost i.e purchase price of the capital assets and selling price of the capital assets.
Whereas,
Abnormal Gain is the gain which are not expected in normal course of business and not regular one.
Ordinary Gain is the gain which are generally expected in normal course of business.
Revenue Gain is the selling value of goods or services. If there is increase in sale value that's called Revenue gain.
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If a corporation sells certain capital equipment for more than its initial purchase price, the difference...
Flag question Question text When the purchase price of an asset is less than its sale...
Flag question Question text When the purchase price of an asset is less than its sale price, then there is a Select one: с a. capital loss. b. corporate income tax. c. budget deficit. d. capital gain. Clear my choice
2. Intercompany equipment sale (20 points) On Jan 2, 2020, a subsidiary sells to its parent...
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Results from the sale of assets used in a trade or business for more than a...
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If an asset is sold before the end of its useful life for more than its...
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Total Revenue = $36,000,000 Total Non-capital costs = $32,400,000 Capital Equipment purchase Price and Original Market...
Total Revenue = $36,000,000 Total Non-capital costs = $32,400,000 Capital Equipment purchase Price and Original Market Value = $15,000,000 Equipment Salvage in percent = 2% Depreciable Life of the Capital, Years = 14 Annual return on capital invested in a similarly risky investment = 12% Accounting Annual Profit = $1,050,000 How would I calculate the economic profits using the average annual opportunity cost of the capital?
Mark received 10 ISOs (each option gives him the right to purchase 14 shares of Hendricks Corporation stock for $7 per s...
Mark received 10 ISOs (each option gives him the right to purchase 14 shares of Hendricks Corporation stock for $7 per share) at the time he started working for Hendricks Corporation five years ago when Hendricks’s stock price was $5 per share. Now that Hendricks’s share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark sells...
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A company buys treasury stock for $10 per share. The company later sells the treasury stock for $11 per share. What is the difference between the resale price and the cost of the treasury stock called? A. Paid - in Capital in Excess of Par B. Gain on Sale of Treasury Stock C. Loss on Sale of Treasury Stock D. Paid - in Capital from Treasury Stock Transactions
ABC Corporation is considering a project with the following projected numbers: Initial investment to purchase equipment...
ABC Corporation is considering a project with the following projected numbers: Initial investment to purchase equipment $260,000 Net working capital investment $16,500 Depreciate equipment to zero book value over the 4 year life of the project Estimated salvage value of the equipment is $50,000 at the end of the project All of net working capital recouped at end of the project $82,000 per year operating cash flow 12 percent discount rate. What is the NPV of the project if the...
Flag question Question text When the purchase price of an asset is less than its sale price, then there is a Select one: с a. capital loss. b. corporate income tax. c. budget deficit. d. capital gain. Clear my choice
2. Intercompany equipment sale (20 points) On Jan 2, 2020, a subsidiary sells to its parent equipment that had cost $40,000. The selling price was $36,000 and accumulated depreciation on that date was $14,000. The subsidiary and the parent both estimate that the equipment has a remaining useful life of 10 years. a. Compute the difference between the annual depreciation expense when the subsidiary owned the equipment and depreciation expense recorded by the parent. b. Compute the gain on sale...
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