Answer:
A) $0
Explanation:
Provided information
Adjusted gross unearned income = $1,000
Marginal tax rate = 28%
By considering the above information, we can find out the child's tax liability
In the 2017 year, the credit for per child is up to $1,000 so there is no tax levied in the year 2017 as it is within the prescribed limit
Hence, child tax liability would be zero.
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
The answer to this question is database management software
This type of software is usually designed to retrieve data, manage it, process it, and present it in a way to make materials duty become a lot esier.
This software will definitely increase the overall productivity in the workplace with lower cost in the long run.
Considering the gas and food about $250
Answer:
$60,000
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($540,000 - $60,000) ÷ (8 years)
= ($480,000) ÷ (8 years)
= $60,000
In this method, the depreciation is the same for all the remaining useful life
We simply used the above formula
