Japan has increased the price of rice imported from the united states through a tax on american rice. this is a form of

g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits

arsen [322]

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

4 0

3 years ago

Debt is frequently incurred when plant assets are acquired. For example, debt may be incurred on the purchase of plant assets. D

Olenka [21]

Answer:

A. capitalize capitalize

Explanation:

All the expenses incurred to make the asset usable are capitalized and those expenses become the part of cost of that assets for which that are incurred. Interest on debt to purchase an asset and in case to construct the asset both are capitalized, because these expenses are essential to make assets usable for the business.

6 0

3 years ago

Data-driven decision making is a process of

maxonik [38]

Planning, collecting, analyzing, and using data to improve your work. l

6 0

3 years ago

A company issues $100,000 face value, zero-coupon, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for simi

aivan3 [116]

Answer:

Amount = Maturity/(1+risk rate)⁴

Amount = $100,000/(1+0.12)⁴

Amount = $63,552 (Approx)

Interest payable = $63,552 x 0.12

Interest payable = $7,626 (Approx)

Interest payable (2nd period) = ($63,552+$7,626) x 0.12

Interest payable (2nd period) = $8,541 (Approx)

Explanation:

JOURNAL ENTRY

BOOKS OF (.....)

Date Account title Debit Credit

Cash a/c Dr $63,552

To Bonds payable a/c $63,552

1st-period

Bond Interest a/c Dr $7,626

To Bonds payable a/c $7,626

2nd-period

Bond Interest a/c Dr $8,541

To Bonds payable a/c $8,541

6 0

3 years ago

Presented below is information related to Donaldson Corp., for the year 2017. Net sales $1,950,000 Cost of goods sold 1,200,000

babymother [125]

Answer:

$\left[\begin{array}{ccc}$Net Sales&&1950000\\$Cost of Goods sold&&1200000\\$Gross Profit&&750000\\$Operating Expenses:&&\\$selling expenses&&95,000\\$Administrative expenses&&70,000\\$Operating Profit&&585000\\\\$Other Revenues and Gains&&\\$Dividend Revenue&30000&\\$Interest Revenue&20000&50000\\&&635000\\$Other expenses and losses&&\\$Interest expense&45000&\\$goodwill impairment&75000&120000\\Income before Income tax&&515000\\\end{array}\right]$

$\left[\begin{array}{ccc}$Income before Income tax&&515000\\$Income tax&&154500\\$Income from continued operations&&360500\\&&\\$Discountinued&&\\$Gain at disposal&300000&\\$Loss from operations&220000&80000\\$Income tax&&24000\\$Income from Discontinued operations&&56000\\&&\\$Net Income&&416500\\$Outstanding Shares &20,000&\\EPS&&20.825\\\end{array}\right]$

Explanation:

The ommited depreciation expense and prior years change will not impact the current income statemnt these wil go directly against retained earnings as we will in vilation of the accounting principle of mathcing the expenses at the time they occur.

First, we solve for gross profit

Then, for other revnues and expense and the income from continued operations

The discounted operations are listed net of taxes

Then, we solve for the net incoem and EPS which si the quotient between the net income and the earnings per share.

7 0

3 years ago