Determining marginal tax rate
In 2012, Firm A paid $50,000 cash to purchase a tangible business asset. In 2012 and 2013, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm A's marginal tax rate in both years was 35 percent.
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Assume the same facts as part (a) except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.
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a $25,000 transfer from the General Fund to an enterprise fund; a $10,000 transfer from an enterprise fund to an internal service fund and a $5,000 transfer from an enterprise fund to the General Fund. In the Business-type Activities column of the
Explain how the credit crisis affected the credit risk premium in the commercial paper market.
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