Two equally competent and equally educated expert witnesses who have the same information and documents should arrive at about the same amount of estimated damages in a particular dispute most of the time. Please, comment on this statement.
Sailcloth & More currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought…
The discount factor corresponding to the company’s incremental borrowing rate for 6 months is 0.95. Assuming that Amazing Corporation does not hedge this transaction, what is the amount of exchange gain or loss that it should show on its December…
AST Corporation has announced that its net income for the year ended June 30, 2008, is $1,000,320. The company paid a 7 percent dividend and had an EBITDA of $ 4,900,000. Its depreciation and amortization expense was equal to $1,500,000.…
The accounting break-even production quantity for a project is 12,320 units. The fixed costs are $216,000 and the contribution margin per unit is $28. The fixed assets required for the project will be depreciated on straight-line basis to zero over…
AST Corporation has announced that its net income for the year ended June 30, 2008, is $1,000,320. The company paid a 7 percent dividend and had an EBITDA of $ 4,900,000. Its depreciation and amortization expense was equal to $1,500,000.…
A fixed asset with a cost of $30,000 and accumulated depreciation of $25,000 is sold for $3,500. What is the amount of gain or loss on disposal of the fixed asset? A. $2,500 loss B. $1,500 loss C. $2,500 gain…
Larry and Jessica form the L&J Partnership. Larry contributes property with and adjusted basis of $70 000, a fair market value of $200 000 and subject to a liability of $80 000in exchange for a 40 % interest in the…
Jake purchased a $205,000 crane for his construction business. He sold the crane for $150,000 after taking $115,000 of depreciation. Assume Jake is in the 33% tax rate bracket. a.On what form would the gain or loss originally be reported?…
Three people are starting with business, in which first person is contributing with $200,000 for a 40 percent ownership interest, second person is contributing with a building as of value of $200,000 and tax basis of $150,000 for a 40…
