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ohaa [14]
1 year ago
11

Losses from ________ exposure generally reduce taxable income in the year they are realized. ________ exposure losses may reduce

taxes over a series of years.
Business
1 answer:
VMariaS [17]1 year ago
6 0

Losses from <u>transaction</u> exposure generally reduce taxable income in the year they are realized. <u>Operating </u>exposure losses may reduce taxes over a series of years.

Transaction exposure is the extent of uncertainty companies concerned in international exchange face. Specifically, it's far the chance that currency exchange quotes will fluctuate after a company has already undertaken a financial duty.

Taxable income is the part of your gross income that the IRS deems a problem with taxes. It includes each earned and unearned profit. Taxable earnings are normally less than adjusted gross income because of deductions that reduce it.

Gross profits consist of all income you obtain that is not explicitly exempt from taxation below the Internal Sales Code (IRC). Taxable profits are the portion of your gross earnings that's sincerely a problem with taxation. Deductions are subtracted from gross profits to reach your amount of taxable earnings.

Learn more about Transaction exposure here brainly.com/question/15021490

#SPJ4

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Sells Company accounts for its investment in OFO, Inc. under the available-for-sale method. How should Sells Company record a ca
ohaa [14]

Answer:

the journal entry should be:

Dr Cash X

    Cr Dividend revenue X

When a company holds securities as an investment and classifies them as available for sale (AFS), any dividends received will be recorded as revenue.

Dividend revenue is reported in the income statement.

7 0
3 years ago
A landowner in Texas is offered $200,000 for the exploration rights to oil on her land, along with a 25% royalty on the future p
Shtirlitz [24]

Answer:

b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.

Explanation:

The probability of discovered oil = 0.25 (25%)

Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit

= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750

Developing = Probability of finding the oil × Future Profits - Cost of Well

= 0.25 × $7,500,000 - $750,000 = $1,125,000

= $1.125 million

Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.

4 0
2 years ago
Explain the significance of capital structure.
mojhsa [17]
Capital structure increases the ability of the company to find new wealth- creating investment opportunities.
4 0
3 years ago
Read 2 more answers
The real per capita GDP in country X is 4 times of that in country Y. The annual growth rate in country X is 2.33%, while in cou
tigry1 [53]

Answer:

It will take 30 years for country Y’s GDP to catch up with that of country X

Explanation:

In this question. We are asked to calculate the number of years it will take a certain country Y to catch up with the GDP of a certain country X, given the annual growth rate in both countries.

We calculate the number of years as follows;

Firstly, we assign a variable to the value of the real GDP of country Y

let real

Let the real GDP of the country Y be n. This means that the GDP of country C will be 4 * n = 4n

With a 7% growth rate annual, country Y's Real GDP will be doubled in 70/7 = 10 years and;

With annual growth rate of 2.33% ,country x's Real GDP doubles in 70/2.33 = 30 years.(Approx)

Now in next 30 years x's Real GDP will be = 2x4n = 8n

and Y's Real GDP in next 30 years will be = 2x2x2xn = 8n.

thus , it will take 30 years to country Y to catch up to the level of country x.

7 0
3 years ago
Read 2 more answers
Define and explain each concept and give specific examples: a. Marginal Propensity to Consume and Marginal Propensity to Save (
siniylev [52]

Answer:

The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.

Multiplier Effect

for every dollar the government spends, it will create a greater than one dollar change in GDP

Spending Multiplier

1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.

Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.

Explanation: Marginal Propensity to Consume

the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI

Marginal Propensity to Save

the fraction of any change in disposable income that is saved; MPS = change is S / change in DI

3 0
2 years ago
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