Answer:
D. Credit card companies usually charge higher interest rates for cash advances than for purchases.
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
Generally, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.
Also, when a credit card holder is requesting for an advance on cash from its merchant or financial institution, they are usually charged more interest rates compared to when using the card to make a purchase.
Hence, the statement which is true about credit card is that, credit card companies usually charge higher interest rates for cash advances than for purchases.
Answer:
Pretax income= $122,500
Explanation:
Giving the following information:
Fixed costs= $72,500
Variable costs equal to 40% of sales.
Sales= $325,000
<u>To calculate the pretax income, we need to use the following formula:</u>
Pretax income= contribution margin - fixed costs
Pretax income= 325,000*(1-0.4) - 72,500
Pretax income= $122,500
Answer:
c
Explanation:
four multiplied by tax percentage
Answer:
$1,032
Explanation:
Calculation for the corporation's tax basis in the property received in the exchange
Based on the information given we were been told that he made a transfer of property with a TAX BASIS of the amount of $965 which as well include a FAIR MARKET VALUE of the amount of $67 which simply indicates or means that the amount of $1,032 ($965+$67) is the tax basis amount of the property that was received in the exchange.
Tax BASIS =Tax basis +Fair market value
Tax BASIS=$965+$67
Tax BASIS=$1,032
Therefore the corporation's tax basis in the property received in the exchange will be $1,032.
