Answer:
Increase in tax rate will reduce income form bond but will not affect the benefits derivable from the purchase of the new luxury auto.
Explanation:
First, a look at the after tax rates for when tax is 35% and when it is increased to 50%.
Step 1: Compute the after tax rate when tax is 35%
=Interest rate x (1-tax rate)
= 0.08 x (1- 0.35)
-5.2%
Step 2: Compute the after tax rate when tax is increased to 50%
= Interest rate x (1- tax rate)
= 0.08 x (1-0.5)
=4%
The first outcome is that an increase in tax rate leads to a decrease in income. Meaning an increased tax rate reduces the income from the bonds.
However, an increase in tax rate although it will affect the income will have no effect on the new luxury condo, that Ms V wants to buy. This is because, the benefits Ms V will get from the auto cannot be taxed as compared with the interest on the bond.
Hence, it becomes easier for Ms V to buy the luxury auto than invest in bonds if the tax rate should increase
I just took the test the answer is ,
- C : teams will reduce tensions between workers
Answer:
a. True
Explanation:
In the case to find the best way of communication and the decisions regarding the allocation of the budget, the managers are required to considered various factors. In the decision process, the companies considered the audience, promotion objective, media, budget and the product characteristic i.e. why it is purchased by the consumer etc
So the given statement is true
As while taking the decisions the above things are relevant
If you financially able to open a deli and it is your passion then you should be able to open one. You might get the feeling that your old employer doesn't approve of what you did, but that is because you are now a competition. You might have some customers who won't want to switch to a new place but most of them probably would be okay with.
Answer:
C.completeness
Explanation:
Occurrence means transactions and events that have been recorded or disclosed have occurred and relate to the entity.Existence means whether or not accounts balances and related disclosures related Assets, liabilities and equity interests exist in the financial statements.
Completeness means there are no unrecorded transactions, events and disclosures and all transactions that have occurred has been included in the general ledger/financial statements
Valuation or allocation means that assets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded and related disclosures have been appropriately measured and described.
In this question, interest on sample of paid notes have been traced to the general ledger account, to check that whether the interest on the selected sample has been included in the general ledger and financial statements.Thus the answer shall be C.completeness