Why should you consider liquidity in making investment decisions?
What will be an ideal response?
The more liquid an investment is, the lower the return that the investment will earn. A savings account has a lower interest rate than a certificate of deposit. You must also estimate the amount of cash that you will need in any time period. If you have too little money invested in liquid assets, you may have to convert other assets into cash. This can be time-consuming, expensive, and inefficient.
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The biggest benefit of going public is the capital infusion the company receives
Indicate whether the statement is true or false.
Serena owns a van that she paid $22,000 for in 2010 and used exclusively for personal purposes until May 9, 2016, when she began using the van in her plumbing business. On May 9, 2016, a comparable van was selling for $13,000 . Serena sells the van on October 28, 2017 . Assuming that the van is 5-year MACRS property, it is not listed property, and that Serena did not make the Section 179 election
to expense on the van, what is her allowable depreciation deduction in 2017? a. $749 b. $1,248 c. $1,267 d. $2,112 e. $2,496