Compute any ratios (or other measures) that you consider will help in an assessment of the costs and performance of the two divisions.

Glasnost plc is a large business organised on divisional lines. Two typical divisions are East

 

and West. They are engaged in broadly similar activities and, therefore, central management

compares their results to help it to make judgements on managerial performance. Both divisions

are regarded as investment centres. A summary of last year’s financial results of the two divisions is as follows:

At the beginning of last year, West division incurred substantial expenditure on automated

production lines and new equipment. East has quite old plant. Approximately 50 per cent of the

sales revenue of East comes from internal transfers to other divisions within the business. These

transfers are based on an unadjusted prevailing market price. The inter-divisional transfers of

West are minimal.

Management of the business focuses on return on investment as a major performance

indicator. The required minimum rate of return is the business’s cost of capital of 10 per cent

a year.

Required:

(a) Compute any ratios (or other measures) that you consider will help in an assessment of

the costs and performance of the two divisions.

(b) Comment on this performance, making reference to any matters that give cause for concern

when comparing the divisions or in divisional performance generally.

find the cost of your paper

Determine the trust’s Net Income For Tax Purposes and Taxable Income for the current year.

During the current year, the Jordan family trust, an inter vivos trust, has business income of $220,000. Of this amount, $50,000 is retained in the trust with a joint election….

Indicate the tax effects of these transactions on the Net Income For Tax Purposes for both the trust and for Bryan.

During 2020, the Ho family trust received eligible dividends from publicly traded Canadian corporations in the amount of $100,000. In addition, it received non-eligible dividends from the family owned Canadian….

compare the tax consequences for both Martin and the trust if the sale takes place in December 2020

The Husak family trust has only one beneficiary, Martin Husak, the 32 year old son of the settlor, Dimitri Husak. It is an inter vivos trust and its only asset….