Bob owns a rental property that he bought several years ago for $260,000. He has taken depreciation on the house of $37,000 since buying it. He sells it in 2019 for $290,000. His selling expenses were $12,000 for the year. What was Bob’s realized gain on the sale?

Answers

Answer 1

Answer:

Bob’s realized gain on the sale is $55,000,

Explanation:

The first step is to find the Book Value of the Rental Property Sold.

Book Value of the Rental Property Sold.

Cost                                               $260,000

Less Accumulated Depreciation  ($37,000)

Book Value                                   $223,000

Gain or Loss on Sale = Selling Price - Cost of Sale (Book Value) - Other Selling Expenses

                                   = $290,000 - $223,000 - $12,000

                                   = $55,000

Conclusion :

Bob’s realized gain on the sale is $55,000,


Related Questions

If the reserve ratio increased from 10 percent to 20 percent, the money multiplier would a. rise from 10 to 20. b. rise from 5 to 10. c. fall from 10 to 5. d. not change.

Answers

Answer:

c

Explanation:

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply

Money multiplier = 1 / reserve requirement

Money multiplier  when reserve ratio is 10% = 1/10 = 0.1 = 10%

Money multiplier  when reserve ratio is 20% =1/20 = 0.05 = 5%

there is a decrease of money multiplier from 5% to 10% when reserve ratio is increased from 10 percent to 20 percent

What is the Double Entry Accounting System? Where did it start? Why is it used?
Question six sentences

Answers

Answer:

The Double Entry Accounting System is a system used in accounting that requires every financial transaction to be recorded in at least two different accounts. This means that for every debit entry, there must be a corresponding credit entry, and vice versa. The double entry system is based on the idea that every transaction has two aspects: a debit aspect and a credit aspect.

The double entry accounting system is thought to have originated in Italy in the 15th century, during the Renaissance. It was first described by Luca Pacioli, an Italian mathematician and Franciscan friar, in his book "Summa de Arithmetica, Geometria, Proportione et Proportionalita" in 1494.

The double entry accounting system is used for several reasons. First, it provides a check and balance system to ensure the accuracy of financial records. Second, it helps to prevent fraud by requiring multiple entries for each transaction. Third, it provides a clear and complete picture of an organization's financial position, which is important for decision making and financial planning. Overall, the double entry accounting system is a widely used and important tool for financial management and reporting.


Volatile price changes, technological changes, and government intervention are what type of risks?

Answers

Volatile price changes, technological changes, and government intervention are external risks that can impact a company's operations and performance.

What are Volatile price changes

Volatile price changes refer to fluctuations in input or product prices, which can affect profitability and cost structure. Technological changes can introduce advancements or disrupt an industry, requiring companies to adapt to avoid becoming obsolete.

Government intervention, through regulatory changes or policies, can create uncertainties and challenges for companies, affecting operations, costs, and market access.

To mitigate these risks, companies should implement risk management strategies such as diversification, contingency planning, staying informed about market trends, investing in R&D, and engaging with government stakeholders.

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Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning houses but has some small business clients as well.

a. Issued $21,000 of QCI stock for cash.
b. Incurred $840 of utilities costs this month and will pay them next month.
c. Paid wages for the current month, totaling $2,600.
d. Performed cleaning services on account worth $3,800.
e. Some of Quick Cleaners’ equipment was repaired at a total cost of $300. The company paid the full amount at the time the repair work was done.

Required:
Prepare journal entries for the above transactions, which occurred during a recent month.

Answers

Answer:

Quick Cleaners, Inc. (QCI)

Journal Entries

a. Debit Cash $21,000

Credit Common Stock $21,000

To record the issuance of QCI stock for cash.

b. Debit Utilities Expense $840

Credit Utilities Payable $840

To accrue utilities expense for the month.

c. Debit Wages Expense $2,600

Credit Cash $2,600

To record the payment of wages for the month.

d. Debit Accounts Receivable $3,800

Credit Service Revenue $3,800

To record the performance of cleaning services on account.

e. Debit Equipment Repairs $300

Credit Cash $300

To record the payment for equipment repairs.

Explanation:

a) Data and Analysis:

a. Cash $21,000 Common Stock $21,000

b. Utilities Expense $840 Utilities Payable $840

c. Wages Expense $2,600 Cash $2,800

d. Accounts Receivable $3,800 Service Revenue $3,800

e. Equipment Repairs $300 Cash $300

17. Why is it important to identify the stakeholders of a business? In your own words

Answers

Without the support of stakeholders an organization would seize to exist. They affect organization by defining the future of the company. Some examples of stakeholders are: government, employees, customers, investors, communities, and suppliers.

Scheduling personnel is an example of an operations management:
A. mission implementation
B. operational decision
C. organizational strategy
D. functional strategy
E. tactical decision

Answers

Answer:

B. operational decision

Explanation:

Scheduling personnel is an example of an operations management:  operational decision

Scheduling personnel represents an example of an operations management of an operational decision.

The following information should be considered:

The staff-level decisions should be made from the lower level to the hierarchy level.Many decisions should be taken at many hierarchy levels.In this, the authority is present for taking the decisions.The lower level should take the decisions with respect to the employees.

Therefore the other options are incorrect.

Hence we can conclude that scheduling personnel represents an example of an operations management of an operational decision.

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Differenciate the different Between economic and Commercial activities

Answers

Answer:

Explanation:

Commercial activities include those features of an economy that are bound to the interchange of commodities, services, and labor exercises, whereas, economic activity draws and encourages a variety of industries.

Which of the following statements about the W-4 form is TRUE?

A) This form is given to employees on their first day on the job.
B) The purpose of the form is to let employers know how much money to withhold from an employee's paycheck for taxes.
C) The purpose of the form is to provide employees with reported wage and salary information.
D) This form is given to employees every January.

Answers

I think the answer is” B” not sure but

Based on the uses of W-4 form, the best option is that B) The purpose of the form is to let employers know how much money to withhold from an employee's paycheck for taxes.

The W-4 Form Is used to determine the withholding tax from an employee. Applies to both part time and full time workers.

This form therefore allows employers to know exactly how much they should deduct from an employee's salary for tax. If the employee has any exemptions, they can also note this in this form.

In conclusion, option B is correct.

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Windsor, started the year with $51600 in its Common Stock account and a credit balance in Retained Earnings of $37800. During the year, the company earned net income of \$41300 and declared and paid $17200 of dividends. In addition, the company sold additional common stock amounting to \$24100 . As a result, the amount of its retained earnings at the end of the year would be

Answers

Answer:

what grade is this?

Explanation:

np idea

dpe

Discuss the case study questions.
Can Uber Be the Uber of Everything?

How have social technologies changed e-commerce?
Have a slide with your reference.please
Can Uber Be the Uber of Everything?

Answers

The new social technologies have changed the platform of e-commerce like Uber by enabling a greater connectivity and convenience for users.

How have social technologies impacted e-commerce platforms like Uber?

Social technologies have helped creation of business models which relies on peer-to-peer interactions such as the sharing economy. These models utilizes platform such as social media and other digital platforms to connect buyers and sellers which creates a more personalized and efficient user experience.

For example, Uber uses social technologies to connect drivers with passengers which allows for real-time updates and communication between parties. Additionally, the social media has become a powerful tool for marketing and customer engagement which allows companies like Uber to reach new audiences and build brand loyalty through targeted advertising and social campaigns.

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Jamie Kerr is an hourly employee of Noonan Company located in Los Angeles. This week, Kerr had to travel to the company's regional office in Santa Fe. He left Sunday at noon and arrived in Santa Fe at 3:30 P.M. During the week, he worked his normal 40 hours in the Santa Fe office (Monday through Friday-9 A.M. to 5 P.M.). In addition, he attended the company's 3½-hour work training session on Wednesday evening. Kerr's hourly rate of pay is $26.90 per hour.

Round the interim computations to two decimal places and use the rounded answers in subsequent computations. Round the final answers to the nearest cent.

a. Kerr's overtime earnings for the week are

b. Kerr's total earnings for the week are

Answers

a) Kerr received $164.78 in weekly overtime pay. Individuals who work for a company and receive compensation are called employees. Under the heading "Income from salaries," earned salaries are taxable.

How does income relate to salary?

For the purposes of income tax, the amount that an employee receives from his employer in any of the following forms during a fiscal year will be considered "Salary": Wages: Wages are a set amount of money that an employer pays its employees in exchange for their work.

In the Netherlands, what is the "30 rule"?

Employees recruited from outside the Netherlands to temporarily work here can take advantage of the 30% facility. They are exempt from paying tax on up to 30% of their salary provided they meet the conditions for the 30% facility.

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An employee from another department will join your team next week. She requested the transfer because she felt her work was becoming predictable and monotonous. Her performance reports show she has made good contributions to programming projects but needs to improve her presentation skills.

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It appears that next week, an employee from another department will be joining your team.

She requested the transfer due to feeling that her previous work was becoming predictable and monotonous. According to her performance reports, she has made valuable contributions to programming projects, demonstrating her strong technical abilities.

However, an area where she could improve is her presentation skills. As she transitions to your team, it would be beneficial to provide her with opportunities to engage in diverse tasks and challenges, ensuring she stays motivated and experiences professional growth.

Additionally, offering resources and training in presentation skills can help her strengthen this aspect of her work. By doing so, she will not only become a more well-rounded team member but will also contribute effectively to the overall success of your team. Remember to welcome her warmly and provide any necessary support during this transition period.

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XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.

Answers

a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond.  We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:

Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%

b. Using the CAPM, we can calculate the cost of equity as:

Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)

= 2% + 1.8 × (8% - 2%)

= 13.6%

c. Using the dividend growth model, we can calculate the cost of equity as:

Cost of Equity = (Dividend / Price) + Growth Rate

= ($4 / $95) + 5%

= 9.3%

d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:

Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%

e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:

Year 1: OCF = $10,000,000

Year 2: OCF = $12,000,000 (20% increase from year 1)

Year 3: OCF = $14,400,000 (20% increase from year 2)

Year 4: OCF = $17,280,000 (20% increase from year 3)

The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.

Calculating the CFFA for each year:

Year 0: CFFA = - $20,000,000

Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000

Year 2: CFFA = $12,000,000 - $0 = $12

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evaluat the impact of the act​

Answers

Answer:

An impact evaluation provides information about the impacts produced by an intervention - positive and negative, intended and unintended, ...

Intended uses and timing: There is scope to use the findings to inform decisions about ...

Focus: There is a need to understand the impacts that have been produced

Resources: There are adequate resources to undertake a sufficiently comprehensive ...

Relevance: It is clearly linked to the strategies and priorities of an organisation, partn.

Explanation:

here is your answer if you like my answer please follow

According to Maslow's hierarchy of needs theory, the need for fringe benefits is an example of needs.

Answers

The second-most important need, according to Maslow's theory of the hierarchy of needs, is safety, which is reflected in workplace perks like job security.

The importance of Maslow's hierarchy of requirements

The model of choice for illuminating the physiology of human motivation is Maslow's hierarchy of needs. It will enable you to spend less time speculating about what makes your employees tick and more time engaging in activities that inspire them.

How is the philosophy of Maslow applied today?

We can think more freely and tactically as practitioners thanks to Maslow's approach. Understanding career development plans, methods, goals, and experiences aids both ourselves and our clients. It gives us the information necessary to pinpoint our interests, skill sets, abilities, and values.

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Please look at the screenshot

Please look at the screenshot

Answers

B I did this in class it definitely B

1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4 percent per year.

a. What is the expected dividend in each of the next 3 years?
b. If the discount rate for the stock is 12 percent, at what price will the stock sell?
c. What is the expected stock price 3 years from now?
d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? Compare your answer to (b).

Answers

Answer:

Explanation:

a ) Expected dividend per share  in the next three  years :

1 ) 2 x 1.04 = 2.08

2 ) 2 x 1.08 = 2.16

3 ) 2 x 1.12 = 2.24

b )

Price of share at present  = 2.08 / (.12-.04 )

= 26

c ) Expected stock price after 3 years

= 2 x 1.16 / .08

= 29

cash inflow i year 1   :      2.08

cash inflow in year 2  :     2.16  

cash inflow in year 3        2.24  + 29  = 31.24  

Present value of cash flow

=  1.85   ,  1.72 ,  22.23

Total = 25.8

It is almost the same with that of data in ( b )

Cash in hand $2000
Cash at the Bank $136000
Bought from Mr John
Books $20000
Bags $70000 Bought goods by cheque $8000
Paid cash for Stationery $600
Sold goods for cash $10000
Pald cash for goods $1500
Cash sales to date $1200
Cash sales to date $74000
Paid rent by cheque $ 5000
Paid Mr John's account in cash $90000
Bought goods in cash $60000
Please help to extract a trail balance from all these information.

Answers

Answer:

the answer is 184300 when you subtract

When a partner invests noncash assets in a partnership, the assets are recorded at the partner’s book value

Answers

Answer:

False

Explanation:

When a partner invests noncash assets in a partnership, the assets are recorded at the partner’s book value is incorrect and false.

Assets are to be recorder at their fair value whenever a partner invests non cash assets in a partnership. The practice is assets brought by partners into firm are always recorded at fair value not book value.

what is excutive branch

Answers

Answer:

The executive branch carries out and enforces laws. It includes the president, vice president, the Cabinet, executive departments, independent agencies, and other boards, commissions, and committees. :)

Aisha is a qualified hairdresser. She opened her own salon, as a sole trader, five years ago. At first business was very slow due to competition from other salons and the fact that Aisha was unknown in the area. Aisha knew that the first year was going to be about survival. Aisha survived her first six months and within a year she was making profit. Aisha wants to grow her business. She thinks that adding beauty treatments to the services she offers will be a profitable option. She has a friend, Christine, who is a trained beauty therapist. She is thinking of asking Christine to become a partner in the expanded business.

Answers

Advantages of sole trading include that: Aisha will be the boss, and keep keep all the profits. The start-up costs are also low.

Who is a sole trader?

A sole trader is a self-employed person who owns and operates their own business on their own. Because a sole trader business lacks a legal identity separate from its owner, many people believe that you are the business.

In a sole trading, we have maximum privacy, establishing and operating the business is simple. It's easy to change your legal structure later if circumstances change you can easily wind up your business.

Therefore, Aisha should be a sole trader.

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Your question is incomplete, but most probably the full question was

Explain TWO advantages to Aisha operating as a sole trader

Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she withdrew $20,000 to buy some machinery which didn't fall in value. She could have earned 10% on the $20,000 had she invested it in another company with the same risk as hers. In adddition to the $20,000 her only other cost is $15,000 per year she charges her business as a salary for herself. In the first year her business made accounting profit of $12,000. Will other people having $20,000 in savings want to leave a $25,000 job to open a business like Sally's if their only objective is money?
A) They would be indifferent, as Sally's income net of costs equals $25,000.
B) Yes, because Sally's income is $27,000 but her costs are $20,000.
C) No, because Sally's income is $27,000 but her costs are $35,000.
D) Yes, because Sally's economic profit is positive.
E) Both (B) and (D).

Answers

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

accounting profit = $12,000opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

5 of 100
Harry is looking at buying a building that has a monthly income of
$3,600, a 5% vacancy rate, and annual expenses of $8,640. He is
expecting a 12% return on his investment. How much should he pay for
this building?

Answers

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

What do you mean by investment?

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

\(\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\ \rm\,The\,Net \,Income = (95\% \times 3,600 \times 12) - 8,640\\\\ \rm\,The\,Net \,Income = \$32400\)

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

                           \(\rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000\)

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

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6. Comparative advantage is when A. B. C. D.
A. one person can produce more of a good than another person.
B. one person can produce a good at a lower opportunity cost than another person.
C. Two parties can complete a task equally well.
D. one person can produce a good at a higher opportunity cost than another person.

Answers

B. one person can produce a good at a lower opportunity cost than another person.

Comparative advantage is a concept in economics that refers to the ability of a person, firm, or country to produce a good or service at a lower opportunity cost than another. Opportunity cost is the cost of forgoing an alternative opportunity in order to pursue a particular action. Hence, the correct option will be B: one person can produce a good at a lower opportunity cost than another person.

For example, let's say Person A can produce 10 units of product X or 5 units of product Y in one hour, while Person B can produce 8 units of product X or 4 units of product Y in one hour. Person A has an absolute advantage in producing both X and Y, as they can produce more of each product than Person B. However, Person B has a comparative advantage in producing product Y, as they can produce it at a lower opportunity cost than Person A, since they have to give up less of their production of product X to produce product Y.

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According to the video, what do many Accountants and Auditors decide to do?

specialize in a specific area
volunteer in schools to teach finance
become Managers later in their careers
take writing classes

Answers

Answer:

specialize in a specific area is the correct answer.

Explanation:

Answer:

its A

Explanation:

got it right on edge

Mazu Mavuso is a 43-year-old South African resident who was employed by Veg & Fruit Limited, a South African company, until 30 November 2022. On 30 November 2022, Veg & Fruit Limited ceased its operations and the pension fund that Veg & Fruit Limited established for its employees also closed down. The Veg & Fruit Limited pension fund paid out R80 000 to Mazu Mavuso during the 2023 year of assessment. All Mazu Mavuso's pension fund contributions have been deducted in the determination of his taxable Income. Mazu Mavuso also decided to join a retirement annuity fund, to which he made a total contribution of R7 000 during the 2023 year of assessment. For the 2023 year of assessment, Mazu Mavuzo's receipts and expenses were as follow: Salary Director's fees earned Local dividends from South African companies Local interest from a non 'tax free investment' Pension fund contributions at 6.5% of his salary Retirement annuity fund contributions Qualifying medical expenses paid Donation to a qualifying section 18A Public Benefit Organisation R 720 000 110 000 45 000 24 500 ? 7 000 61 630 6 000 Calculate Mazu Mavuso’s taxable income for the 2023 year of assessment. (25 marks) 1.2) Calculate Mazu Mavuso’s total normal tax liability for the 2023 year of assessment. Assume that Mazu Mavuso had a taxable income of: • R770 900 before any retirement fund lump sum withdrawal benefits. • R843 900 after any retirement fund lump sum withdrawal benefits. (17 marks) Competency Framework Reference: E1.2 Interpretation of tax legislation b) Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation. E1.3 Application of tax legislation to calculate tax obligation a) Analyse the taxpayer’s tax profile. c) Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies.​

Answers

Explanation:

to calculated this question to solve

Does Audit services needed in Auchi polytechnic student union government? If yes,why

Answers

Audit services is one that is needed in Auchi polytechnic student union government to know if the student body use the money allocated to them in the right manner or for the right project.

.

What is the student union?

The student union is known to be a body that is composed of student of any university, polytechnic or college institution.

It is known to be a body that is autonomous and one whose internal life set up its own by-laws.

Note that the student unions are often allocated funds by the university or polytechnic  and as such they have to use the audit service because some of their leaders may squander the money given to them., So this will help to checkmate them.

Hence, Audit services is one that is needed in Auchi polytechnic student union government to know if the student body use the money allocated to them in the right manner or for the right project.

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12. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. what is its P/E ratio

Answers

Answer:

P/E Ratio = 12x or 12 times

Explanation:

We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.

P/E = Price per share / Earnings per share

We already have EPS. We need to calculate the price per share.

It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,

M/B = Market price per share / Book value per share

1.2 = Market price per share / 20

20 * 1.2 = Market price per share

Market price per share = $24

So, P/E ratio = 24 / 2

P/E Ratio = 12x or 12 times

According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?

Answers

The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.

Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:

Evaluation of the Night-light Data Method:

Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.

Reasons for Differences between Traditional Expenditure Approach and Night-light Data:

Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.

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Whether or not an object becomes real estate depends on whether the object was affixed or installed with

Answers

Whether an object becomes real estate depends on whether the object existed affixed or installed to permanently enhance the land.

What is Real Estate?

Real estate exists in private property in the state of buildings and land. Real estate can be utilized for residential, commercial, or industrial objectives, and contains any resources on the land such as water or minerals. In economics and political economy, there exist three broad forms of property: private property, public property, and collective property (also named cooperative property).

Key risks contain bad locations, negative cash flows, increased vacancies, and problem tenants. Other risks to consider exist the scarcity of liquidity, hidden structural concerns, and the unpredictable nature of the real estate market.

Real estate stands for property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest granted in this thing of real property, buildings, or housing in public.

Hence, Whether an object becomes real estate depends on whether the object existed affixed or installed to permanently enhance the land.

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