Answer:
purchasing power bonds
Explanation:
The whole idea behind constant purchasing power bonds is that when they are redeemed, the amount of money received by the bondholder will hold a stable amount of purchasing power instead of a nominal amount of dollars.
This type of bonds are similar to inflation-linked bonds which are adjusted to the value of the CPI.
The whole idea is that the bonds will always yield real interest rates.
This will be your credit card balance.
Answer:
18.22%
Explanation:
The computation of the return on total assets is shown below:
Return on assets = (Net income) ÷ (average of total assets)
where,
Net income is $39,000
Average total assets = (Beginning total assets + ending total assets) ÷ 2
= ($189,000 + $239,000) ÷ 2
= $214,000
Now put these values to the above formula
So, the ratio would equal to
= $39,000 ÷ $214,000
= 18.22%
Answer:
Otter Enterprises will be taxed differently depending on what type of business it is. If it is a partnership, LLP, LLC or S corporation, then it is a pass through business, which means it is not taxed directly, instead its owners are taxed directly. If it is a C corporation, then it has to pay corporate taxes and the owners pay income taxes.
- Partnership, LLP and LLC: net operating profit = $320,000 - $210,000 = $110,000 + long term capital gains $15,000. Ellie and Linda must each pay income taxes for $55,000 and capital gains taxes for $7,500.
- S corporation: The S corporation will pay employer taxes on the $50,000 distributed to Ellie and Linda (owner-employee relationship), and then Ellie and Linda must pay income taxes for the remaining net income and capital gains taxes for the capital gains (similar to a partnership).
- C corporation: must pay corporate taxes on its net profits + capital gains, and then Ellie and Linda must pay income taxes for any dividends received. The retained earnings account (what is left after taxes and dividends) is not taxed until dividends are distributed.
