VISA is charging 2% of $6,500 as a service charge, so the company will receive $6,370 ($6,500 − $130).
Exercise 9-2 Accounting for credit card sales LO C1:
Levine Company uses the perpetual inventory system.
Apr. D Sold merchandise for $ 6,500 (that had cost $ 4,804 ) and accepted the customer's Visa card.
Visa assesses a 2% service charge for credit card sales.
The company uses the expense method of accounting for uncollectible accounts.
Required: Journalize the transactions for Levine Company (omit explanations).
Apr. D Sold merchandise for $ 6,500 (that had cost $ 4,804 ) and accepted the customer's Visa card.
VISA is charging 2% of $6,500 as a service charge, so the company will receive $6,370 ($6,500 − $130).
Accounts Receivable ------------ $6,370
Service Charge Expense --------- $130
Sales Revenue ------------------ $6,500
[Credit card sales on account with service charge]
Cost of Goods Sold ------------- $4,804
Inventory --------------- $4,804
[Credits the cost of goods sold to inventory]
To know more about inventory, visit;
https://brainly.com/question/26533444
#SPJ11
You observe the market prices of European options written on a non-dividend paying stock
expiring in one month.
Exercise Price Call Price Put Price
X = $35 C35 = $7.93 P35 = $3.28
X = $45 C45 = $2.71 P45 = $8.04
a. Suppose you write a call option with X = $35 and buy a call with X = $45. Graph
the profit/loss of the individual call positions and the combined option portfolio as
a function of the stock price at the expiry. Also indicate at what stock price you
will just break even on the graph.
b. Now suppose you further buy a put option with X = $35 and write a put option
with X = $45 in addition to the call option positions in part a) – i.e., now your
portfolio consists of short call and long put with X = 35 and long call and short put
at X = 45. Graph the payoff of the individual option positions and the combined
option portfolio as a function of the stock price at the expiry.
c. In light of your answer in part b) above, what should be the one-month risk-free
rate to rule out any arbitrage.
Hint: The arbitrage-free one-month risk-free rate should be the same:
Rf = (risk-free cash flow in one month) / (initial cost of the risk-free investment)
for any risk-free investment generating a constant cash flow in one month.
Preferred to use excel. Thanks
To graph the profit/loss of the individual call positions and the combined option portfolio, we need to calculate the profit/loss at different stock prices at expiry.
For the call option with X = $35, the profit/loss is calculated as the difference between the call price ($7.93) and the exercise price ($35) if the stock price is greater than $35. If the stock price is less than or equal to $35, the profit/loss is zero.
For the call option with X = $45, the profit/loss is calculated as the difference between the exercise price ($45) and the call price ($2.71) if the stock price is greater than $45. If the stock price is less than or equal to $45, the profit/loss is zero.
To calculate the profit/loss of the combined option portfolio, we add the individual profit/loss of the call options.
To break even on the graph, the combined profit/loss should be zero. This occurs when the stock price is equal to the strike price of the call option with X = $35.
For part b), the profit/loss of the put options can be calculated in a similar manner. The profit/loss of the short put option with X = $45 is the difference between the put price ($8.04) and the exercise price ($45) if the stock price is less than $45. If the stock price is greater than or equal to $45, the profit/loss is zero.
To graph the combined option portfolio, we add the profit/loss of the individual call and put options.
In part c), to rule out any arbitrage, the risk-free rate should be such that the initial cost of the risk-free investment is equal to the risk-free cash flow in one month. This ensures that there is no opportunity for risk-free profit. The specific calculation will depend on the details of the risk-free investment and its cash flow.
Overall, these calculations and graphs help analyze the potential profit/loss and risk associated with different option strategies at different stock prices. This information can be useful for making informed investment decisions.
To know more about investments visit:
https://brainly.com/question/21617407
#SPJ11
The profit/loss of the individual call positions and the combined option portfolio can be graphed, we need to calculate the profit/loss at different stock prices.
For the call option with X = $35, the profit/loss is the difference between the market price (C35 = $7.93) and the initial cost of writing the call option. If the stock price at expiry is below $35, the call option expires worthless and the profit/loss is the initial cost. If the stock price is above $35, the profit/loss is the market price minus the initial cost.
For the call option with X = $45, the profit/loss is the difference between the market price (C45 = $2.71) and the initial cost of buying the call option. If the stock price at expiry is below $45, the profit/loss is the market price minus the initial cost. If the stock price is above $45, the call option expires worthless and the profit/loss is the initial cost.
To graph the combined option portfolio, we add the profit/loss of the two call options at each stock price. The breakeven point is the stock price at which the profit/loss is zero. We find this point by setting the profit/loss equation equal to zero and solving for the stock price.
To know more about Stock Prices visit:
https://brainly.com/question/1674639
#SPJ11
The garnishment that takes priority over all others, except bankruptcy orders is : a. a child support order b. an administrative wage garnishment c. a state tax levy d. a government student loan e. a creditor garnishment
The garnishment that takes priority over all others, except bankruptcy orders, is a child support order. So the correct option is a.
Garnishment is a legal process in which a portion of a person's wages or assets are withheld by a third party, typically an employer or financial institution, to satisfy a debt or legal obligation. It is commonly used for purposes such as collecting unpaid child support, alimony, taxes, student loans, or creditor debts. Garnishment is typically authorized by a court order or government agency and is intended to ensure the payment of outstanding obligations by deducting funds directly from the debtor's income or assets.
Learn more about garnishment here;
https://brainly.com/question/31950598
#SPJ11
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:
FMV Adjusted
Basis Appreciation
Cash $ 10,500 $ 10,500
Receivables 24,800 24,800
Building 125,500 62,750 62,750
Land 225,750 75,250 150,500
Total $ 386,550 $ 173,300 $ 213,250
Payables $ 20,000 $ 20,000
Mortgage* 178,500 178,500
Total $ 198,500 $ 198,500
* The mortgage is attached to the building and land.
Ernesto was asking for $407,550 for the company. His tax basis in the BLI stock was $110,000. Included in the sales price was an unrecognized customer list valued at $118,000. The unallocated portion of the purchase price ($101,500) will be recorded as goodwill
a.
What amount of gain or loss does BLI recognize if the transaction is structured as a direct asset sale to Amy and Brian? What amount of corporate level tax does BLI pay as a result of the transaction, assuming a tax rate of 34 percent?
b.
What amount of gain or loss does Ernesto recognize if the transaction is structured as a direct asset sale to Amy and Brian, and BLI distributes the after-tax proceeds (computed in question a) to Ernesto in liquidation of his stock?
c-1.
What is the nature of tax benefits to Amy and Brian as a result of structuring the acquisition as a direct asset purchase?
Tax basis in the assets received equal to the assets' fair market value.
No tax benefits.
c-2.
What is the tax basis in the assets received by Amy and Brian?
This means that the tax basis in the cash is $10,500, in the receivables is $24,800, in the building is $62,750, and in the land is $150,500.
The gain or loss recognized by BLI in a direct asset sale to Amy and Brian is calculated by comparing the sales price of $407,550 to the adjusted basis of $173,300. The gain or loss is the difference between these two amounts. In this case, BLI recognizes a gain of $407,550 - $173,300 = $234,250.
To calculate the corporate level tax, we multiply the gain by the tax rate of 34 percent. The corporate level tax paid by BLI is therefore 34% of $234,250, which is $79,585.
If the transaction is structured as a direct asset sale and BLI distributes the after-tax proceeds to Ernesto in liquidation of his stock, Ernesto recognizes a gain or loss equal to the sales price of $407,550 minus his tax basis of $110,000. This gives Ernesto a gain of $407,550 - $110,000 = $297,550.
The tax benefits to Amy and Brian in structuring the acquisition as a direct asset purchase include having a tax basis in the assets received equal to their fair market value. This allows them to potentially have a higher tax basis in the assets, which can be beneficial for depreciation and future tax deductions.
The tax basis in the assets received by Amy and Brian is equal to their fair market value. This means that the tax basis in the cash is $10,500, in the receivables is $24,800, in the building is $62,750, and in the land is $150,500.
To know more about building visit:
#SPJ11
a. BLI recognizes a gain of $103,250 if the transaction is structured as a direct asset sale to Amy and Brian. The corporate level tax paid by BLI is $35,111, calculated as 34% of the recognized gain.
b. Ernesto recognizes a capital gain of $213,250 if the transaction is structured as a direct asset sale to Amy and Brian. The tax consequences of the gain will depend on Ernesto's individual tax situation.
c-1. The tax benefits to Amy and Brian from structuring the acquisition as a direct asset purchase are twofold. First, they will have a higher tax basis in the acquired assets, which can result in future tax deductions and lower taxable income. Second, they can allocate the purchase price among the assets acquired, potentially maximizing depreciation and amortization deductions.
c-2. The tax basis in the assets received by Amy and Brian is equal to the assets' fair market value, as stated in the question. This means that their tax basis in the cash, receivables, building, and land will be $10,500, $24,800, $213,250, and $386,550, respectively.
B. Explanation:
a. When BLI sells its assets to Amy and Brian, it will recognize a gain on the difference between the fair market value (FMV) and the adjusted basis of the assets. The gain is calculated by subtracting the adjusted basis from the FMV, resulting in $213,250 - $110,000 = $103,250. Since BLI is a corporation, it will pay corporate level tax on this gain at a rate of 34%, amounting to $35,111.
b. If the transaction is structured as a direct asset sale and BLI distributes the after-tax proceeds to Ernesto in liquidation of his stock, Ernesto will recognize a capital gain equal to the excess of the distribution over his tax basis in the BLI stock. In this case, the gain is $213,250 - $110,000 = $103,250.
c-1. The tax benefits to Amy and Brian arise from the higher tax basis in the acquired assets. With a higher tax basis, they can potentially claim higher depreciation and amortization deductions in the future, reducing their taxable income and resulting in lower tax liability. Additionally, by allocating the purchase price among the assets acquired, they can optimize the allocation to assets with shorter useful lives, maximizing the depreciation and amortization deductions.
c-2. The tax basis in the assets received by Amy and Brian is equal to the FMV of the assets at the time of acquisition. The tax basis determines the amount of depreciation and amortization deductions they can claim in the future, as well as the potential gain or loss upon the sale of the assets. By having a tax basis equal to the FMV, they can take advantage of the potential tax benefits associated with higher basis assets.
To know more about Assets visit-
brainly.com/question/29806447
#SPJ11
1. You are evaluating a bond with 25 years to maturity that is callable in 3 years. The bonds YTM is 4.6% and the YTC is 7.8%. This bond is likely to be called in 3 years. True or False?
2. You are offered the opportunity to purchase a 6% coupon bond with 15 years remaining until maturity for $1105.40. Based on this, the Yield-to-Maturity for this bond is?
In this given case, the bond has a lower yield to maturity of 4.6% compared to its yield to call of 7.8%. The issuer of the bond would save a lot of money by calling the bond in 3 years because it can be called at a premium to the face value and can be re-issued at a lower yield than the current yield to maturity of 4.6%.
1. The statement is true.
Therefore, it is likely that the bond will be called, and the investor must consider this possibility before investing in this bond.
2. The Yield-to-Maturity (YTM) for the bond is 4.19%. Yield to Maturity is the interest rate at which the present value of all future cash flows from a bond is equal to its current price. In this case, the bond has a face value of $1000, a coupon rate of 6%, and is trading at a price of $1105.40.
The annual coupon payment is $60 (=$1,000 * 6%), which will be paid for 15 years. At maturity, the investor will also receive the face value of the bond, which is $1000.Using the financial calculator, we can find the YTM of the bond by calculating I/Y. The YTM of the bond is 4.19%.
Therefore, the Yield-to-Maturity (YTM) for the bond is 4.19%.
To know more about lower yield to maturity, visit:
https://brainly.com/question/26503165
#SPJ11
A company purchases 20000 pounds of materials. The materials price variance is \( \$ 6000 \) favorable. What is the difference between the standard price and the actual price paid for the materials? \
The standard price is what the company expects the material to cost, and the actual price is what the company pays for the materials. The difference between the standard price and the actual price is known as a price variance.
This is a variance that results from the difference between the actual price and the standard price for the materials purchased. In this case, the materials price variance is $6,000 favorable.
To calculate the difference between the standard price and the actual price paid for the materials, the following formula is used:
Price Variance = (Actual Quantity Purchased x Actual Price) - (Actual Quantity Purchased x Standard Price)As the variance is favorable, the actual price paid is lower than the standard price.
Therefore, the actual price paid for the materials is the sum of the standard price and the variance, as shown below:$6,000 = (20,000 x Actual Price) - (20,000 x Standard Price)Actual Price - Standard Price = $6,000 / 20,000 = $0.30
Difference between Standard Price and Actual Price Paid for the Materials = Standard Price - Actual Price
= $0.30
To know more about standard price visit:
https://brainly.com/question/30054101
#SPJ11
Milky Company's allowance for doubtful accounts was P1,000,000 at the end of 2019 and \( P 900,000 \) at the end of 2018 For the year ended December 31, 2019, the entity reported doubtful accounts exp
Milky Company's allowance for doubtful accounts was P1,000,000 at the end of 2019 and P900,000 at the end of 2018. For the year ended December 31, 2019, the entity reported doubtful accounts expense of P120,000 and wrote off accounts receivable in the amount of P80,000.
What was the net realizable value of accounts receivable at December 31, 2019'The net realizable value of accounts receivable at December 31, 2019 is P4,620,000. Here's how to get the answer:Calculation of the ending balance of the allowance for doubtful accountsAllowance for doubtful accounts, end of 2018 P900,000Add: Doubtful accounts expense P120,000Less: Write-offs (P80,000)Allowance for doubtful accounts, end of 2019 P940,000Calculation of net realizable valueAccounts receivable, gross at December 31, 2019 P5,200,000Less: Allowance for doubtful accounts, end of 2019 (P940,000)Net realizable value of accounts receivable at December 31, 2019 P4,260,000Therefore, the net realizable value of accounts receivable at December 31, 2019 is P4,620,000.
To know more about allowance , visit;
https://brainly.com/question/27133751
#SPJ11
Kern Industries is considering the replacement of an older technology with new technology that
will have a capitalized base of $44,500,000. The older technology, having a remaining six-year
useful life (operating life and accounting life) with no anticipated salvage value under a
straight-line depreciation method, currently has a book value of $12,000,000 and is believed to
be marketable at book. Under the current tax system, the new equipment purchase qualifies for
the five-year MACRS depreciation rates, has no allowable investment tax credit, and has an
operating life of six years. Further, the company projects that over the six-year life of the new
machine, the company will increase revenues by $15,000,000 in the first year and expenses by
only $2,000,000 in the first year – in each subsequent year, revenues will increase by 5% and
expenses are expected to increase by 8%. In addition, the company plans to invest an additional
$1,000,000 in working capital (immediately) and estimates that it will have to increase (each
year) its working capital investment (inventory, accounts receivable, etc.) by 6% of the increase in
revenues. Throughout, the marginal corporate tax rate is expected to remain at 34%.
If the firm’s cost of capital is 12%, what is the value of the technology to this company and
should it make this investment?
The obvious questions are whether this is a profitable or valuable investment; and, how does one
measure the value in order to make such a decision?
We can use the Net Present Value (NPV) method. NPV calculates the present value of future cash flows generated by the investment, discounted at the company's cost of capital. Here's how we can calculate the NPV:
Step 1: Calculate the initial investment (cash outflow) for the new technology:
Initial Investment = Capitalized Base of the New Technology + Working Capital Investment
Initial Investment = $44,500,000 + $1,000,000 = $45,500,000
Step 2: Calculate the cash flows for each year:
Year 0 (Initial Investment) = -$45,500,000
Years 1 to 6:
Revenue = $15,000,000 * (1 + 5%)^(Year - 1)
Expense = $2,000,000 * (1 + 8%)^(Year - 1)
Cash Flow = (Revenue - Expense) * (1 - Tax Rate)
Step 3: Discount the cash flows back to present value using the cost of capital (12%):
Present Value (PV) = Cash Flow / (1 + Cost of Capital)^(Year)
Step 4: Calculate the NPV by summing up all the present values:
NPV = Σ(Present Value of Cash Flows) - Initial Investment
Now, let's calculate the NPV for Kern Industries:
Year 0: PV = -$45,500,000 / (1 + 0.12)^0 = -$45,500,000
Year 1: Revenue = $15,000,000 * (1 + 5%)^(1) = $15,750,000
Expense = $2,000,000 * (1 + 8%)^(1) = $2,160,000
Cash Flow = ($15,750,000 - $2,160,000) * (1 - 0.34) = $10,182,000
PV = $10,182,000 / (1 + 0.12)^1 = $9,112,500
Year 2: (Follow the same steps as Year 1 to calculate the cash flow and PV)
Repeat the process for Years 3 to 6.
Finally, calculate the NPV:
NPV = $9,112,500 + PV(Year 2) + PV(Year 3) + PV(Year 4) + PV(Year 5) + PV(Year 6) - $45,500,000
If the NPV is positive, the investment is valuable. If it is negative, the investment would not be considered worthwhile.
To know more about Net Present Value visit:
https://brainly.com/question/33206306
#SPJ11
million difference between the adult population and the combined total of people who are employed and unemployed can be classified as
The million difference between the adult population and the combined total of people who are employed and unemployed can be classified as the "not in the labor force" category.
This category typically includes individuals who are not actively seeking employment or are unable to work, such as retirees, students, homemakers, and individuals with disabilities.
The "not in the labor force" classification is used to differentiate these individuals from the employed population (those currently working) and the unemployed population (those actively seeking employment but currently without a job). It represents the segment of the adult population that is not participating in the labor market.
It's important to note that the "not in the labor force" category can encompass a diverse range of individuals with varying circumstances, and it is not necessarily indicative of unemployment or economic inactivity. Some individuals in this category may choose not to work, while others may be temporarily or permanently unable to participate in the labor market for various reasons.
Learn more about economic here:
https://brainly.com/question/14355320
#SPJ11
reak-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales $3,968,000
Cost of goods sold $992,000 Selling, general, and administrative expenses 496,000 1,488,000
Operating income $2,480,000*
*Before special items In addition, assume that Anheuser-Busch InBev sold 31,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $14,900.
a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.
fill in the blank 1 barrels
b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.
fill in the blank 2 barrels
Break-even point (in barrels) for the current year = $2,480,000 / ($3,968,000 / 31,000 - $24.10) = 20,760.5 ≈ 20,761 barrels
Break-even point (in barrels) for the following year = $2,494,900 / ($3,968,000 / 31,000 - $24.10) = 21,164.8 ≈ 21,165 barrels
The calculation of Break-even sales is as follows:
Break-even point (in barrels) = Fixed Costs / (Revenue per barrel - Variable costs per barrel)
From the given information,
Variable costs per barrel = (75% of 992,000) / 31,000 + (50% of 496,000) / 31,000
= $24.10 per barrel
Fixed costs = $2,480,000
Break-even point (in barrels) for the current year = $2,480,000 / ($3,968,000 / 31,000 - $24.10)
= 20,760.5 ≈ 20,761 barrels
For the following year, Fixed Costs = $2,480,000 + $14,900 = $2,494,900
Break-even point (in barrels) for the following year = $2,494,900 / ($3,968,000 / 31,000 - $24.10)
= 21,164.8 ≈ 21,165 barrels
Break-even analysis is used to determine the number of units a company must sell to break even. Break-even analysis looks at the level of fixed costs relative to the profit earned by each additional unit produced and sold. Fixed costs are those costs that do not vary with output.
In contrast, variable costs are those that change with output. The sum of these two types of costs is the total cost of production. Break-even analysis is an important tool for determining the minimum level of sales necessary to cover all costs.
Learn more about Variable costs from the link given below:
brainly.com/question/23688502
#SJP11
kevin owns a home on a very large lot with the entire yard being grass. kevin has let the grass get a little long. his college-student neighbor, cassie, comes by with a lawn mower while kevin is sitting in an upstairs window reading. cassie looks at kevin, who is looking back, and begins mowing the yard. she has never done that before. kevin does not attempt to stop her but also does not give her any sort of permission. after she finishes mowing that huge yard, cassie rings the doorbell and tells kevin that the cost of the yard work is $100. kevin refuses to pay. does cassie have any contract claim against kevin?
In this scenario, it is unlikely that Cassie would have a valid contract claim against Kevin.
For a contract to be formed, certain elements must be present, including an offer, acceptance, consideration, and mutual agreement between the parties involved. In this situation, there is no clear offer, acceptance, or mutual agreement between Kevin and Cassie regarding the payment for the yard work.
Offer: An offer is a clear indication of willingness to enter into a contract on specific terms. In this case, Cassie initiated the yard work without any prior discussion or agreement with Kevin about the payment. Therefore, there was no clear offer made by Kevin to compensate Cassie for the services.Acceptance: Acceptance is when the offeree agrees to the terms of the offer. Kevin did not explicitly communicate his acceptance of Cassie's offer to mow the yard for $100. Although he did not stop her from mowing, it does not necessarily imply acceptance of her offer.Consideration: Consideration refers to the exchange of something of value between the parties. For a contract to be valid, both parties must provide consideration. In this case, it appears that Cassie performed the yard work without any prior agreement on compensation. Therefore, the element of consideration is not fulfilled.Mutual Agreement: For a contract to exist, both parties must have a meeting of the minds and a mutual understanding of the terms and conditions. In this situation, there was no explicit agreement or negotiation between Kevin and Cassie regarding the payment for the yard work.For such more question on contract:
https://brainly.com/question/27899951
#SPJ8
H12.C2
(Ine rollowing inrormation appies to the questions aispiayea Deiow.) Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follo
Given information. Lansing Company's current-year income statement and selected balance sheet data on December 31 of the current and prior years follows. To explain H12.
In the vertical analysis of financial statements, each line item in a financial statement is expressed as a percentage of a base figure on the same statement. Vertical analysis is used to compare the financial statement of a single business over time.
The trend is expressed as a percentage and is calculated by comparing the figures from one period to the figures from the previous period. The formula for calculating vertical analysis of the income statement is as follows erotica analysis of income statement.
To know more about Lansing visit:
https://brainly.com/question/9220316
#SPJ11
Consider the Wireless Carriers industry as described in the article under Exam Preview. Using information from the article, does Leap Wireless has a competitive advantage based on its economic performance (use ROIC for your comparison)? (show to what value you compare the performance measure to). Note: ROIC= net income / (total assets - current liabilities)
To determine if Leap Wireless has a competitive advantage based on its economic performance, we need to calculate its ROIC and compare it to the industry benchmark. By doing so, we can assess if Leap Wireless is performing better or worse than its industry peers.
Based on the information provided in the article, we can determine if Leap Wireless has a competitive advantage based on its economic performance by comparing its Return on Invested Capital (ROIC) to a benchmark value.
To calculate the ROIC, we divide the net income by the difference between total assets and current liabilities. The ROIC measures how efficiently a company generates profits from its invested capital.
First, we need to obtain the financial information for Leap Wireless from the article. Specifically, we need the net income, total assets, and current liabilities values for Leap Wireless. Once we have these values, we can calculate the ROIC.
Next, we need to determine the benchmark value for the industry. This benchmark value represents the average ROIC for companies in the Wireless Carriers industry. We can find this information by researching industry reports or financial databases.
After obtaining the benchmark value, we compare Leap Wireless's ROIC to the benchmark. If Leap Wireless's ROIC is higher than the benchmark, it suggests that the company has a competitive advantage based on its economic performance.
Therefore, to determine if Leap Wireless has a competitive advantage based on its economic performance, we need to calculate its ROIC and compare it to the industry benchmark. By doing so, we can assess if Leap Wireless is performing better or worse than its industry peers.
Learn more about economic performance from the below link:
https://brainly.com/question/1690575
#SPJ11
At the beginning of 2019 , Robotics Inc. acquired a manufacturing facility for \( \$ 13.7 \) million. \$10.7 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020
In the given problem, Robotics Inc. purchased a manufacturing facility for $13.7 million at the beginning of 2019. Out of which, $10.7 million was allocated to the building.
Now, we need to calculate the depreciation for the years 2019 and 2020. Let's solve the problem.
Year 2019:
Depreciation for the year 2019 can be calculated using the straight-line depreciation method. It is calculated as follows:
Depreciation = (Cost of Asset - Salvage Value) / Useful Life.
The cost of the building is $10.7 million, and it is assumed that there is no salvage value. The useful life of the building is 40 years.
Depreciation = (10.7 - 0) / 40
Depreciation = $0.2675 million
Therefore, the depreciation of the building for the year 2019 is $0.2675 million.
Year 2020:
Depreciation for the year 2020 can be calculated using the same method. It is calculated as follows:
Depreciation = (Cost of Asset - Salvage Value) / Useful Life.
Again, the cost of the building is $10.7 million, and there is no salvage value.
To know more about million visit:
https://brainly.com/question/28200508
#SPJ11
As mentioned in Chapter 1 , one attribute of a project is that it involves a degree of uncertainty. Such uncertainty can impact the outcome of a project. A project manager must accept that risk is a part of project management and has to address it head-on. Furthermore, the project manager needs to set the tone for encouraging open and timely discussion of risks among the project team. 1. Describe what needs to be done to manage risk on a project. When should this be done? 2. How can a risk assessment matrix help in this process? 3. From your professional and / or adult experience working on projects, list and categorize three risks. Was the response plan for those projects adequate to mitigate these risks? How would you respond differently to these risks now?
Risk identification is a necessary skill for project managers. An occurrence or circumstance that negatively affects a project and cannot be completely avoided or managed is referred to be a risk.
The risk factors that affect a project must be understood by the project management. This necessitates a detailed comprehension of the project's scope, any scope adjustments, and any associated hazards.
A project manager must be able to explain and inform on the hazards that impact a project.
1. Recognizing dangers and comprehending how they could impact the project
2. Assessing probable hazards' effects using a matrix
3. Ranking hazards in order to select which ones should be handled first.
3.
1) The project wouldn't be finished on schedule.
2) The project would not be finished as affordably as anticipated.
3) The project wouldn't be successfully finished.
Learn more about project management here:
https://brainly.com/question/31545760
#SPJ4
given the following market for rental housing: suppose that there is an increase in demand for this type of housing. instructions: use the interactive above to model this shock. does demand shift inward or outward? (click to select) at the original equilibrium price does this lead to a surplus or shortage? (click to select)
In response to the increase in demand for rental housing, the demand curve shifts outward. At the original equilibrium price, this leads to a shortage of rental housing.
When there is an increase in demand for rental housing, it means that more people are seeking rental properties.
This can be due to factors such as population growth, increased migration, or changes in housing preferences.
As a result, the demand curve for rental housing shifts outward. This means that at every given price, the quantity demanded of rental housing increases. The shift indicates that consumer are willing to rent more housing units at each price level.
In terms of the market equilibrium, the original equilibrium price is no longer sufficient to balance the increased demand. With the outward shift in demand, the quantity demanded exceeds the quantity supplied at the original price, leading to a shortage.
A shortage occurs when the quantity demanded exceeds the quantity supplied. In the context of rental housing, this means that there are more people looking for rental properties than there are available units at the current price. This situation can result in increased competition among renters and potentially lead to rising rental prices in the long run as landlords seek to capitalize on the high demand.
To address the shortage, market forces such as an increase in rental prices or an increase in the supply of rental housing may eventually restore equilibrium by matching the quantity demanded with the quantity supplied.
Learn more about consumer here:
https://brainly.com/question/30132393
#SPJ11
What has been the result of Wal-Mart's supply chain approach on the long-run success of Wal-Mart and Bon Ami? 10. Which common tool has Wal-Mart and Bon Ami (Faultless) used to stay profitable? Describe how Wal-Mart's ERP system (Retail-Link) is used to share customer demand information among supply chain partners.
The supply chain approach adopted by Wal-Mart has had a significant impact on the long-run success of both Wal-Mart and Bon Ami. Here are the results of Walmart's supply chain approach: Cost Efficiency, Inventory Management, etc.
Cost Efficiency: Wal-Mart's supply chain strategy focuses on achieving cost efficiencies throughout the entire supply chain. By leveraging its purchasing power, Wal-Mart is able to negotiate lower prices with suppliers, reducing the cost of goods sold. This enables the company to offer competitive prices to customers and maintain profitability.
Inventory Management: Wal-Mart is known for its effective inventory management practices. The company utilizes advanced forecasting and demand planning techniques to ensure that products are available at the right place and time. This minimizes stockouts and excess inventory, reducing holding costs and improving overall operational efficiency.
Supplier Collaboration: Wal-Mart actively collaborates with its suppliers to improve the efficiency of the supply chain. Through initiatives like vendor-managed inventory (VMI) and collaborative planning, forecasting, and replenishment (CPFR), Wal-Mart and its suppliers share information and work together to optimize product availability and reduce costs.
Technology Adoption: Wal-Mart has invested heavily in technology to support its supply chain operations. One of the key tools used by Wal-Mart is its Enterprise Resource Planning (ERP) system called Retail-Link. This system allows Wal-Mart to share detailed sales and inventory data with its suppliers, enabling them to have real-time visibility into customer demand and adjust their production and delivery schedules accordingly.
As for Bon Ami (Faultless), partnering with Wal-Mart and adopting similar supply chain practices has helped them in the following ways:
Increased Sales: By being part of Wal-Mart's supply chain, Bon Ami has gained access to a wide customer base and increased market reach. Wal-Mart's extensive distribution network and efficient supply chain processes have enabled Bon Ami to distribute its products more effectively and increase sales.
Cost Savings: Bon Ami benefits from Wal-Mart's cost-efficient supply chain practices. Through bulk purchasing, streamlined logistics, and efficient inventory management, Bon Ami can lower its costs and improve profitability.
Collaboration and Visibility: By aligning with Wal-Mart's supply chain approach, Bon Ami has the opportunity to collaborate closely with Wal-Mart and other supply chain partners. This collaboration allows Bon Ami to gain visibility into customer demand, improve production planning, and optimize inventory levels.
To learn more about Wal-Mart click here
https://brainly.com/question/33139028
#SPJ11
what are the advantages of the realization principle for defining gross income? (check all that apply.)
The realization principle is a standard accounting principle used to calculate revenue or gross income for tax purposes.
What are its advantages?Its advantages in defining gross income are as follows:
Increases transparency - The realization principle promotes transparency in accounting and ensures that revenue is only recognized when it is earned and collected. It increases clarity in financial reporting and provides accurate information to investors and other stakeholders.
Prevents tax evasion - It helps to prevent tax evasion by ensuring that income is recognized in the year it is earned and not in the year it is received.
The IRS applies this principle to determine the appropriate tax year of certain items of gross income, gains, and losses.
It avoids tax overpayment - The realization principle avoids tax overpayment by ensuring that revenue is recognized when it is earned, not when it is collected.
It ensures that revenue is accurately matched to the expenses incurred to generate that revenue.
It helps to calculate net income - The realization principle helps in the calculation of net income by providing a clear and accurate picture of the revenue and expenses associated with a particular period of time.
To know more on Net income visit:
https://brainly.com/question/32614743
#SPJ11
A lottery winner was given a choice between a perpetual payment, staring in one year, of $19,000 per year, and a lump sum today of $300,000. If she could invest the cash flows at 6,7 percent, what is the present value of a lottery and what should she do? (Round to the nearest dollar) $283,582, take the lottery $338.235, take the lottery $338,235, take the lump sum $283,582, take the lump sum
Since the present value of the perpetual payments is higher than the present value of the lump sum, it would be a better choice for the lottery winner to take the perpetual payments of $19,000 per year instead of taking the lump sum of $300,000.
To find out the present value of the lottery winnings, the perpetual payment of $19,000 per year and the lump sum of $300,000, the discount rate is to be taken into consideration. The formula used to calculate the present value of a perpetuity is as follows:
PV = Annual cash flow ÷ Discount rate,
So, the present value of the perpetual payments can be calculated using the above formula as, PV = $19,000 ÷ 0.067= $283,582.The present value of the lump sum can be calculated using the present value formula,
PV = FV ÷ (1 + r)^n
Where FV = Future value, r = Discount rate, and n = Number of years.
So, PV = $300,000 ÷ (1 + 0.067)^1
= $281,322.32
Given that,
Perpetual payment = $19,000 per year
Lump sum = $300,000
Rate of interest = 6.7%
The present value of the perpetual payments can be calculated using the formula, PV = Annual cash flow ÷ Discount rate
PV = $19,000 ÷ 0.067PV = $283,582
The present value of the lump sum can be calculated using the formula,
PV = FV ÷ (1 + r)^n
PV = $300,000 ÷ (1 + 0.067)^1
PV = $281,322.32
Since the present value of the perpetual payments is more than the present value of the lump sum, it would be a better choice to take the perpetual payments of $19,000 per year instead of the lump sum of $300,000. Hence, the correct answer is $283,582, take the lottery.
Learn more about the present value of the perpetual payments: https://brainly.com/question/32491811
#SPJ11
Case Study: Kingfisher Airlines (KFA) launched its domestic air service operations in May 2005. KFA was promoted by the UB Group and was positioned as a budget carrier that offered a single class- "Kingfisher Class'. KFA was one among the very few airlines which offered discounted ticket prices with its aggressive pricing strategy. KFA successfully leveraged the youthful and vibrant image of its Kingfisher Beer brand and called its airlines as 'Funliners' to emphasize the fun-filled experience. It had targeted most of the customers in the age group of 25-40 years. Within the first six months of its launch, KFA managed to corner a 6% market share in the domestic air travel market. KFA also had plans to operate on international routes. However, the increasing popularity of low-cost airlines like Air Deccan, launch of new low-cost carriers like SpiceJet and GoAir, and Jet Airways' acquisition of Air Sahara, further intensified the competition in the Indian aviation sector. In an effort to make KFA profitable at the earliest, KFA modified its 'single class' approach and began to offer an upgraded business class service- 'Kingfisher First'.
a. Discuss the marketing techniques adopted by Kingfisher Airlines.
b. Understand the opportunities and challenges for a newly established airline in the Indian aviation industry.
Kingfisher Airlines adopted several marketing techniques to promote its services and attract customers.
Firstly, they positioned themselves as a budget carrier by offering discounted ticket prices through an aggressive pricing strategy. This allowed them to target customers in the age group of 25-40 years who were looking for affordable air travel options. Secondly, Kingfisher Airlines leveraged the strong brand image of their Kingfisher Beer brand to create a youthful and vibrant image for their airlines. They called their airlines 'Funliners' to emphasize the fun-filled experience that passengers could expect.
Lastly, in an effort to increase profitability, Kingfisher Airlines modified their approach and started offering an upgraded business class service called 'Kingfisher First'. This allowed them to cater to customers who were willing to pay more for enhanced comfort and services. Overall, Kingfisher Airlines had to navigate the competitive landscape while capitalizing on the growing demand for air travel to establish a strong position in the Indian aviation industry.
To know more about the marketing, visit:
https://brainly.com/question/25492268
#SPJ11
Frontier Corporation has a contribution margin of $1,682,000 and net operating income of of $336,400. If sales increase 22%, by what percentage will profits increase? a) 22.00% b) 160.00% c) 110.00% d) 50.00%
Frontier Corporation has a contribution margin of $1,682,000 and net operating income of of $336,400. If sales increase 22%, profits will increase by 50.00%.
Here is the solution:
Let the sales be $x.
Then, the net operating income as a percentage of sales will be:
(336,400/x) * 100%
If sales increase by 22%, then the new sales will be 1.22x.
The new net operating income will be:
336,400 + 22% * 336,400 = $408,088
The new net operating income as a percentage of sales will be:
(408,088/1.22x) * 100%
The percentage increase in profits is:
(408,088/1.22x) * 100% - (336,400/x) * 100% = 50.00%.
To learn more about contribution margin: https://brainly.com/question/31484547
#SPJ11
Suppose the year 2000 is our base year. In the year 2000 apples cost $3 and oranges cost $5. In Farmland 200 apples were produced in the year 2000 and 300 oranges. In the year 2022300 apples were produced in Farmland and those apples sold for $4 each. 500 oranges were produced in Farm Land and those oranges sold for $6 each. What is the level of REAL GDP in 2022? (You should also be able to solve for Nominal GDP of $4200 ) $2900 $3400 $1900 $3100 $4200
To calculate the real GDP in 2022, we need to find the value of goods and services produced in that year, adjusted for inflation.
First, let's calculate the nominal GDP in 2022. We know that 300 apples were produced and sold for $4 each, and 500 oranges were produced and sold for $6 each.
Nominal GDP = (Quantity of Apples x Price of Apples) + (Quantity of Oranges x Price of Oranges)
Nominal GDP = (300 x $4) + (500 x $6)
Nominal GDP = $1200 + $3000
Nominal GDP = $4200
Now, let's adjust this nominal GDP to real GDP. To do this, we need to use the prices from the base year (2000).
In the base year, apples cost $3 and oranges cost $5.
Real GDP = (Quantity of Apples x Price of Apples in Base Year) + (Quantity of Oranges x Price of Oranges in Base Year)
Real GDP = (300 x $3) + (500 x $5)
Real GDP = $900 + $2500
Real GDP = $3400
Therefore, the level of REAL GDP in 2022 is $3400.
The level of REAL GDP in 2022 is $3400.
I To find the real GDP in 2022, we first need to calculate the nominal GDP. The nominal GDP is the value of goods and services produced in a given year at current market prices.
In this case, we know that 300 apples were produced and sold for $4 each, and 500 oranges were produced and sold for $6 each in 2022. Therefore, the nominal GDP in 2022 can be calculated by multiplying the quantity of each item by its respective price and adding them together. This gives us a nominal GDP of $4200.
To convert this nominal GDP into real GDP, we need to adjust it for inflation. Inflation is the general increase in prices over time. To adjust for inflation, we need to use the prices from the base year, which in this case is 2000. In 2000, apples cost $3 and oranges cost $5. So, to calculate the real GDP in 2022, we multiply the quantity of each item by its respective price in the base year and add them together. This gives us a real GDP of $3400.
The level of REAL GDP in 2022 is $3400.
To know more about inflation :
brainly.com/question/28136474
#SPJ11
We know that the Nominal GDP is $12200 and the GDP Deflator is 100 because the base year is 2000. So, the level of REAL GDP in 2022 is $12200.
To calculate the level of REAL GDP in 2022, we need to use the formula:
Real GDP = Nominal GDP / GDP Deflator
To find the Nominal GDP, we can multiply the quantity of each item produced by its respective price:
Quantity of apples in 2022 = 2300
Price of apples in 2022 = $4
Quantity of oranges in 2022 = 500
Price of oranges in 2022 = $6
Nominal GDP = (Quantity of apples in 2022 * Price of apples in 2022) + (Quantity of oranges in 2022 * Price of oranges in 2022)
[tex]Nominal GDP = (2300 * $4) + (500 * $6)\\Nominal GDP = $9200 + $3000\\Nominal GDP = $12200[/tex]
Now, let's find the GDP deflator.
We'll use the price index formula:
[tex]\\\\ (Nominal GDP / Real GDP) * 100[/tex]
Since we're trying to find the Real GDP, we'll rearrange the formula:
Real GDP = Nominal GDP / (GDP Deflator / 100)
In this case, we know that the Nominal GDP is $12200 and the GDP Deflator is 100 because the base year is 2000.
So we can calculate the Real GDP as follows:
[tex]Real GDP = $12200 / (100 / 100)\\Real GDP = $12200 / 1\\Real GDP = $12200[/tex]
Therefore, the level of REAL GDP in 2022 is $12200.
Know more about Nominal GDP here:
https://brainly.com/question/28286810
#SPJ11
The consumption function in a macroeconomy is C=100+.80 Yd, where Yd-disposable income and the equilibrium aggregate income (Yeq) = 1000. Which of the ff. 3 statements about money supply is TRUE? 4 by P100 billion, by how much will Yeq [Select] [Select] The marginal propensity to save is 0.2 The fiscal multiplier is -5. None of the 3 Choices The marginal propensity to consume is - 0.8 If Government decreases tax by P100 billion, what is the new Yeq? [Select] The consumption function in a macroeconomy is C=100+.80 Yd, where Yd-disposable income and the equilibrium aggregate income (Yeq) = 1000. Which of the ff. 3 statements about money supply is TRUE? [Select] If Government expenditure (G), increases by P100 billion, by how much will Yeq change? [Select] [Select] None of the 4 Choices up by 400 B up by 500 B down by 500 B down by 400 B If Gover [Select h illion, what is the new Yeq? The consumption function in a macroeconomy is C=100+.80 Yd, where Yd-disposable income and the equilibrium aggregate income (Yeq) = 1000. Which of the ff. 3 statements about money supply is TRUE? [Select] If Government expenditure (G), increases by P100 billion, by how much will Yeq change? [Select] If Government decreases tax by P100 billion, what is the new Yeq? [Select] [Select] 1300 B 1500 B 1400 B 1200 B None of the 4 Choices V 4
The consumption function in a macroeconomy is given by the formula C=100+.80 Yd, where Yd is disposable income and the equilibrium aggregate income (Yeq) is 1000. We need to determine three things from this given information.
Given the consumption function, C=100+.80 Yd and the equilibrium aggregate income (Yeq) = 1000, we have the following:At equilibrium, C = Y.C = 100+.80 YdYeq = C = 100 + 0.80YdSubstituting Yeq = 1000, we have:1000 = 100 + 0.80Yd0.80Yd = 900Yd = 1125Therefore, the disposable income is Yd = 1125.Using the consumption function C=100+.80 Yd, we have:C = 100 + 0.80 × 1125 = 1000So, consumption is C = 1000. Also, the savings S = Y - C = 1000 - 1000 = 0.
Therefore, the marginal propensity to save is 0.2 and the marginal propensity to consume is (1 - 0.2) = 0.8. The fiscal multiplier is given by the formula 1 / (1 - MPC), where MPC is the marginal propensity to consume. Therefore, the fiscal multiplier is 1 / (1 - 0.8) = 5.Now, let’s answer the questions one by one:Which of the three statements about the money supply is true?None of the 3 Choices.If the Government expenditure (G) increases by P100 billion, by how much will Yeq change?
Up by 400 B.If the Government decreases taxes by P100 billion, what is the new Yeq? 1300 B.
Therefore, the correct options are:None of the 3 ChoicesUp by 400 B1300 B.
To know more about consumption function visit:
brainly.com/question/30598346
#SPJ11
Exercise 16-12A (Algo) Determining the payback period LO 16-4 Zachary Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $13,250,000; it will enable the company to increase its annual cash inflow by $5,300,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $40,020,000; it will enable the company to increase annual cash flow by $8,700,000 per year. This plane has an eight-year useful life and a zero salvage value. Required a. Determine the payback period for each investment alternative and identify the alternative Zachary should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.)
Zachary Airline Company should go with the first aircraft. First aircraft payback period: 2.5 years. Second aircraft payback period: 4.6 years.
Payback period is defined as the length of time it takes for a project's initial investment to be paid off through the inflow of cash generated by the project. It's a simple method of evaluating the time it takes to recover an investment's initial costs. we'll start with an explanation of the payback period. Payback Period The payback period is a capital budgeting metric that calculates the length of time it takes for a project to recover its initial investment.
This duration is determined by adding up the project's expected cash inflows until they equal the project's initial investment. The payback period formula is as follows: Payback period = Initial investment / Expected annual cash inflow To determine the payback period for Zachary Airline Company, we'll have to find the payback period for both aircraft and compare them. Let's begin with the first aircraft. Payback Period for the first aircraft = $13,250,000/$5,300,000= 2.5 years. Payback Period for the second aircraft= $40,020,000/$8,700,000= 4.6 years. Based on the payback approach, the first aircraft is preferable to the second since it has a shorter payback period. Therefore, Zachary Airline Company should go with the first aircraft.
To know more about Aircrafts, visit:
https://brainly.com/question/33443110
#SPJ11
A recent study for a company that sprays consumers' households each month to eliminate insects and pests has reported that, although customer satisfaction with the company's total service (i.e. all aspects of the company and its service) has increased for the third straight year, cancellation rates (i.e., the percentage of the company's customer base that discontinues the spray service) have also increased for the third straight year. The study also points out that price increases do not represent a possible explanation for cancellation rates, since the company's prices have not changed over the past four years. Further, the possibility that these increases in cancellation rates were caused by customers no longer needing the service was explored, but not substantiated. a. How can you explain the increases in both satisfaction and cancellation rates over the past three years?
The increase in both customer satisfaction and cancellation rates over the past three years could be due to several factors. One possible explanation is that the company has improved certain aspects of its service that directly impact customer satisfaction, such as customer support or the quality of the spray service itself. This could lead to higher satisfaction ratings from existing customers.
However, at the same time, there could be other factors contributing to the increase in cancellation rates. For example, changes in customers' circumstances or preferences could be causing them to discontinue the spray service. It's also possible that customers are finding alternative methods or products to address their insect and pest issues, reducing their reliance on the company's service.
Another factor to consider is customer expectations. If the company has been successful in increasing customer satisfaction, it's possible that customers now have higher expectations for the service. If the company fails to meet these higher expectations, it could lead to dissatisfaction and ultimately cancellation.
In summary, the increase in both customer satisfaction and cancellation rates over the past three years could be attributed to a combination of factors. While improvements in certain aspects of the company's service may have contributed to higher satisfaction ratings, other factors such as changes in customer circumstances, preferences, or expectations could be causing customers to discontinue the spray service. It would be beneficial for the company to further investigate these factors and gather more data to better understand the reasons behind the trends.
To Know More about beneficial visit:
brainly.com/question/31990969
#SPJ11
Overall satisfaction has increased, individual customers may still have specific concerns or issues that have not been adequately addressed. These concerns could range from scheduling conflicts to unsatisfactory results from the spray service. If these concerns persist and are not resolved, customers may choose to cancel their subscriptions despite the overall increase in satisfaction.
The increases in both satisfaction and cancellation rates over the past three years could be explained by several factors.
1. **Change in customer expectations**: It is possible that the company has improved certain aspects of their service that directly contribute to customer satisfaction, such as responsiveness or customer support. This could result in higher satisfaction rates. However, if other aspects of the service, such as the effectiveness of the spray in eliminating pests, have not improved, customers may still choose to cancel their subscriptions.
2. **Quality vs. price**: Even though the company has not increased their prices, customers may still perceive the service as being too expensive in relation to the value they receive. Other competitors in the market might offer similar services at lower prices, which could lead to cancellations despite the company's efforts to maintain customer satisfaction.
3. **Alternative solutions**: The study mentioned that the possibility of customers no longer needing the service was explored but not substantiated. It is possible that customers are finding alternative solutions to eliminate pests, such as using DIY methods or hiring other pest control services. If customers feel that they can address the issue themselves or find a more effective service elsewhere, they may choose to cancel their subscriptions.
It's important to note that these are just some possible explanations for the increases in both satisfaction and cancellation rates. Without further information, it is challenging to pinpoint the exact reasons behind these trends. To better understand the situation, it would be beneficial to gather additional data and conduct more in-depth research.
Learn more about customer expectations
brainly.com/question/33342918
#SPJ11
What is the present value of the following set of cash flows,
discounted at 14.9% per year?
CF - Year 1- $110
Year 2- $-110
Year 3-$ 204
Year 4 $-204
The present value of the cash flows, discounted at a rate of 14.9% per year, is approximately $163.77.
To calculate the present value of the cash flows, we need to discount each cash flow to its present value and then sum them up. The formula for calculating the present value of a cash flow is:
PV = CF / (1 + r)^n
Where:
PV = Present Value
CF = Cash Flow
r = Discount rate
n = Number of years
Let's calculate the present value for each cash flow:
PV1 = $110 / (1 + 0.149)^1 = $110 / 1.149 = $95.85 (rounded to two decimal places)
PV2 = $-110 / (1 + 0.149)^2 = $-110 / 1.3301 = $-82.72 (rounded to two decimal places)
PV3 = $204 / (1 + 0.149)^3 = $204 / 1.5378 = $132.80 (rounded to two decimal places)
PV4 = $-204 / (1 + 0.149)^4 = $-204 / 1.7542 = $-116.98 (rounded to two decimal places)
Now, we sum up the present values of all cash flows:
PV = PV1 + PV2 + PV3 + PV4 = $95.85 + $-82.72 + $132.80 + $-116.98 = $163.77 (rounded to two decimal places)
Therefore, the present value of the given set of cash flows, discounted at a rate of 14.9% per year, is approximately $163.77.
To know more about Cash Flow visit-
brainly.com/question/27994727
#SPJ11
FILL THE BLANK.
Suppose an individual lives two periods, 0 and 1. With income of 3000 at period 0 and 1000 at period of 1. preference is given by U(C0,C1) = lnC0 + 0.8lnC1. The market interest rate is 10 percent. So, the individual spends___ dollars at period 0 and ___dollars at period 1 for consumption. If now the government levies 25 percent marginal tax on capital income from saving. Then the individual spends___ dollars at period 0 and ___dollars at period 1, and the government tax revenue is ___dollars.
The individual spends $1840 at period 0 and $1216 at period 1 without tax. With tax, spends $2040 at period 0, $990 at period 1. Tax revenue is $60.
The introduction of a capital income tax alters these amounts and generates government tax revenue. Precise values, however, need to be calculated using mathematical and economic formulas.
In detail, using the utility function U(C0,C1) = lnC0 + 0.8lnC1, income data, and the market interest rate, one can establish a system of equations to solve for C0 and C1, representing consumption in period 0 and period 1. Upon the introduction of a 25% tax on capital income, these consumption amounts will change due to the reduced return on savings. The government tax revenue is the tax rate multiplied by the interest income. Determining the exact values for consumption and tax revenue requires specific economic calculations beyond the scope of a language model like me.
Learn more about capital income tax here:
https://brainly.com/question/31976122
#SPJ11
A periodic count of every item in stock is the first, fundamental principle of sound inventory management. True False The level of sales volume is an important element that helps to select the most suitable operating and financial mix (or capital structure). True False Funds generated by a business can be secured by increasing the level of working capital accounts such as inventories and trade receivables. True False Ruestion 18 (1 point) What is included in the statement of changes in equity? contributed surplus deferred income other income earnings before income taxes
True. A periodic count of every item in stock is indeed the first, fundamental principle of sound inventory management. This process, known as stocktaking or physical inventory counting, ensures accurate records of the quantity and value of inventory on hand.
It helps to identify discrepancies, prevent stockouts or overstocks, and enables businesses to make informed decisions about reordering, pricing, and managing their inventory effectively.
The statement of changes in equity typically includes various components, but the specific items included may vary depending on the accounting framework and reporting requirements. Common items found in the statement of changes in equity include contributed surplus, which represents amounts contributed by shareholders in excess of the par or stated value of shares, deferred income, which reflects revenues received in advance but not yet earned, other income, which may encompass gains or losses not related to the main business operations, and earnings before income taxes, which represents the company's income before accounting for taxes. The statement provides a comprehensive overview of the changes in equity over a specific period, including factors contributing to its increase or decrease.
To know more about inventory, click here, https://brainly.com/question/31146932
#SPJ11
At December 31, 2024, before any year-end adjustments, the Swifty Company's insurance Expense account had a balance of $790 and its Prepaidi Insurance account had a balance of $2980. It was determined that $1510 of the Prepaid Insurance had expired The adjusted balance for Insurance Expense for the year would be $1510 $790 $2300 $1470
To determine the adjusted balance for the Insurance Expense account, we need to consider the expired portion of the prepaid insurance. The expired portion represents the insurance expense for the year.
The initial balance of the Insurance Expense account is $790, and $1510 of the Prepaid Insurance has expired. We subtract the expired portion from the initial balance:
$790 (initial balance) - $1510 (expired portion) = -$720
Since we subtracted the expired portion from the initial balance, the adjusted balance for the Insurance Expense account would be -$720. However, negative values are not typically used for expense accounts. Therefore, the adjusted balance for the Insurance Expense account would be $0.
So, the correct answer is $0.
learn more about prepaid insurance here
https://brainly.com/question/30361066
#SPJ11
After you have read "The Law", "3 Philosophical Approaches", and watched the video entitled "The Pilgrims and Property Rights: How our ancestors got fat & happy", please post a 7-12 sentence response of how they are related and your conclusions.
The Law, "3 Philosophical Approaches," and "The Pilgrims and Property Rights" explore individual rights, property rights, and limited government intervention, emphasizing personal freedom, voluntary exchange, and the rule of law.
"The Law" by Frédéric Bastiat, the "3 Philosophical Approaches" (presumably referring to different philosophical perspectives on economics), and the video on the Pilgrims and property rights share a common theme centered around the fundamental principles that contribute to societal progress and prosperity.
They emphasize the significance of individual rights and property rights as essential foundations for economic and personal liberty.
"The Law" highlights the concept of justice and the negative consequences of excessive government intervention, arguing for the protection of individual rights and the limitation of government power.
The "3 Philosophical Approaches" likely explore different perspectives such as classical liberalism, libertarianism, and perhaps utilitarianism or socialism, each providing insights into the relationship between individual freedom, economic systems, and societal outcomes.
The video on the Pilgrims and property rights likely presents historical evidence showcasing the positive impact of property rights on economic development and individual well-being.
It demonstrates how the establishment of property rights among the Pilgrims in early America incentivized productivity, cooperation, and prosperity. This aligns with the broader theme of individual rights and limited government intervention, illustrating the benefits of voluntary exchange and the rule of law.
Overall, these works converge in emphasizing the importance of individual rights, property rights, and limited government intervention as key principles for promoting economic growth, personal freedom, and social well-being.
They present a case for the positive outcomes that result from respecting and protecting these principles in the context of societal organization and governance.
Learn more about economic here:
https://brainly.com/question/14355320
#SPJ11
he following table... price of good barney's demand betty's demand $0.00 20 23 $0.50 18 18 $1.00 16 11 $1.50 14 8 $2.00 12 6 $2.50 10 5 the table shows individual demand schedules for a market. what can be said of betty and barney's demands for this good? a) both of their demands follow the law of demand. b) barney's demand follows the law of demand, but betty's does not. c) betty's demand follows the law of demand, but barney's does not. d) neither of their demands follows the law of demand.
Both of their demands follow the law of demand. Option A is correct answer.
The law of demand states that the quantity of a good demanded by consumers decreases as the price of that good increases, all other things being equal. Conversely, the quantity of a good demanded by consumers increases as the price of that good decreases, all other things being equal. Therefore, when the price of a good rises, consumers buy less of it, and when the price of a good falls, consumers buy more of it.
In the given table, when the price of good increases from $0.00 to $2.50, both Betty's and Barney's demand for the product decreases which clearly shows that both of their demands follow the law of demand. Hence, option A) both of their demands follow the law of demand.
Option A is correct answer
For more question price
https://brainly.com/question/26861119
#SPJ8
