Bender Corporation's warehouse was destroyed by a tornado. The fair market value of the warehouse at the time of the tornado was $500,000 and its adjusted basis was $350,000. Bender received $425,000 in insurance proceeds, used $400,000 to buy a replacement warehouse, and used the other $25,000 for business expenses. Assuming Bender take advantage of any available deferral provisions, what is Bender's taxable gain in the current year related to the warehouse?

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

What is the relationship between credit and debt?