Cost of the party as an entertainment expense

Assignment Help Financial Management

Reference no: EM131078241

Evander, an officer in the Marine Corps, was appointed commanding officer of the Marine training base in Beaufort, S.C. As is customary in connection with changes in command, he hosts a party at his home for officers and guests the night before he assumes command of the base. Can Evander deduct the cost of the party as an entertainment expense?

Reference no: EM131078241

Questions Cloud

What was average real risk-free rate and premium : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bil..

Total dollar return on this investment over the past year : Suppose you bought a 7.4 percent coupon bond one year ago for $900. The bond sells for $940 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on th..

Capital budgeting criteria-ethical considerations : A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $10 million at Year 0 to mitigate the environ..

Pension plan is obligated to make disbursements : A pension plan is obligated to make disbursements of $2.7 million, $3.7 million, and $2.7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 10% annually.

Cost of the party as an entertainment expense : Evander, an officer in the Marine Corps, was appointed commanding officer of the Marine training base in Beaufort, S.C. As is customary in connection with changes in command, he hosts a party at his home for officers and guests the night before he as..

What was dividend yield and the capital gains yield : Suppose a stock had an initial price of $80 per share, paid a dividend of $0.60 per share during the year, and had an ending share price of $88. What was the dividend yield and the capital gains yield?

What is the portfolio beta : You own a stock portfolio invested 34 percent in Stock Q, 18 percent in Stock R, 36 percent in Stock S, and 12 percent in Stock T. The betas for these four stocks are 1.03, 1.09, 1.49, and 1.94, respectively. Required: What is the portfolio beta?

Describe the different types of leases : Describe the different types of leases. Explain how they would benefit managers for financial planning. Select one lease option and describe the advantages and disadvantages of selecting that option in your role as manager. In response to your peers,..

What must the risk-free rate be : A stock has an expected return of 15 percent, its beta is 1.35, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

User Account

All Pages