What are the reasons for holding inventories?

1.How might each of the following affect the level of inventories held by a business?


(a) An increase in the number of production bottlenecks experienced by the business.

(b) A rise in the level of interest rates.

(c) A decision to offer customers a narrower range of products in the future.

(d) A switch of suppliers from an overseas business to a local business.

(e) A deterioration in the quality and reliability of bought-in components.

2.What are the reasons for holding inventories? Are these reasons different from the reasons for

holding cash?


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….