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NEW QUESTION: 1
Which of the following sales should be reported as a capital gain?
A. Government bonds sold by an individual investor.
B. Sale of equipment.
C. Real property subdivided and sold by a dealer.
D. Sale of inventory.
Answer: A
Explanation:
Explanation
Choice "d" is correct. Government bonds held by an individual investor are considered capital assets in the hands of the investor. When these types of security investments are sold, the resulting gain or loss is reported as capital.
Choice "a" is incorrect. In this case, we must assume that the BEST answer is option "d" (as that option would ALWAYS result in capital gain or loss treatment) and that the examiners are assuming that the equipment is depreciable equipment that has been used in a business for over one year. [If the equipment had been considered a personal asset by the examiners and had sold for a gain, it would also be a capital asset that sold for a capital gain, and there would be two correct answers.
Remember that the correct answer is the option that best answers the question.] Depreciable equipment used in a business and held for over one year falls under the category of Section 1245 property. When Section 1245 assets are sold at a gain, all the accumulated depreciation on the asset is recaptured as ordinary income (the same category as the depreciation expense was deducted against), and any remaining gain (typically, in practice, this is not the case, though, as the asset would have had to sell for an amount greater than its purchase price) is capital gain under Code Section
1231. [Note that Section 1245 applies only to gains. If the asset had sold for a loss, the loss would have been ordinary under Section 1231.] Choice "b" is incorrect. Real property sold by a dealer is considered inventory and results in ordinary income or ordinary losses upon sale. Inventory is not a capital asset and is not afforded the capital gain benefits.
Choice "c" is incorrect. Inventory is not a capital asset and is not afforded the capital gain benefits.
The sale of inventory results in ordinary income or loss (e.g., gross profit on sales) being reported on the tax return, as inventory is an asset held for sale in the ordinary course of business.
NEW QUESTION: 2
Wie werden Enterprise Services (ES) für die SAP Business Suite dem Kunden zur Verfügung gestellt?
A. Über Support Packages
B. Über Erweiterungspakete
C. Über Best Practices
D. Über Add-Ons
Answer: B
NEW QUESTION: 3
トンネルオーバーレイの動的ルーティングプロトコルとしてEIGRPを使用して、DMVPNフェーズ3を実装する必要があります。 EIGRPがハブとすべてのスポーク間のすべてのルートをアドバタイズできるようにするには、どのアクションを実行しますか？
A. スポークにネットワークをアドバタイズするとき、それ自体をネクストホップとして設定するようにハブを構成します。
B. ハブのEIGRPのスプリットホライズンを無効にします。
C. 配布リストを追加して、スポークサブネットを許可し、他のすべてのネットワークを拒否します。
D. ハブからスポークへのルートを要約します。
Answer: B
NEW QUESTION: 4
Which of the following statements is most correct?
A. All of these statements are false.
B. A firm facing a steep demand curve (that is, high flotation costs) for new equity would likely also face, at some point, a steeply upward sloping WACC curve.
C. A break point is based on the dollar value used of a specific type of capital, and occurs at the point where the cost of that capital type increases. Thus, if a firm has $100,000 in earnings, and stockholders want $50,000 of those earnings paid as dividends, then retained earnings will have two break points.
D. All of these statements are correct.
E. One purpose of calculating the WACC (Weighted Average Cost of Capital) is to have a singular cost of capital measure that can be applied to evaluate all of the firm's projects, including those of greater than and lesser than average risks.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Because of high flotation costs, dollars raised by selling new stock must work harder than dollars raised by retaining earnings. Steep demand would result in a steeply upward sloping WACC curve. Note, however, that for most firms, new equity issues are rare.
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