<span>Total itemized deductions must be “greater than the standard deduction” in order to reduce the tax liability.
Itemized deductions are the personal expenditures which can be deducted from the adjusted gross income (AGI) when the taxable income is determined.
Standard deduction is a blanket deduction which depends on the tax-payer’s age, filing status and other factors. It is taken by a taxpayer whose itemized deductions are comparatively small.
To avoid the itemizing deductions, an individual can chose to take the standard deduction, which is a flat amount.
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Answer:
10%
Explanation:
Cost of preferred capital=dividend per share/Par value of preferred capital
=$2/$20=10%
We take issue price of preferred stock for the sake of working cost of capital.
Answer:
28.new technology
29.putting competitor's out of business.
30.supply goods and services in the product market
31.quantity demands decreases
32.toothpaste is a normal good.
34.a leftward shift of the demand curve.
"Normal thinking" which is doing things the same way that they have been done in the past. It can get in the way of creative problem solving.
Answer: The answer is c $1,080 $560
Explanation:
The journal entry will be
Dr: common stock $200 million
Dr: paid in capital $180 million
In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.
Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560