Answer:
Please check the answer below
Explanation:
a. One issue is the "locking-in" of assets. If I hold shares of Corporation X, then I can delay paying taxes as long as I don't sell. Effectively, I get to keep all of the interest/dividend payments on my tax liability. However, if I discover that X is really a poor investment and Corporation Y is better, then selling X and buying Y means that I have to pay taxes. This might discourage me from making a switch to a more profitable/efficient investment decision. This is the "locking-in" effect.
b. A short-run cut might cause many people to sell stocks that they had felt "locked-in" with. The penalty for switching is smaller, so more people will do it -- resulting in a great deal of cap gains tax revenue collected.
c. Taxing realized gains, even when the stock is not sold, rather than just accrued gains would eliminate this locking-in effect. Investors would not be penalized for switching to a better investment, and long-term capital gains revenue (as well as efficiency) would rise.
You should always review your credit card statements/reports after being a victim of identity theft, this way it will tell you how much was stolen and how much your bank will need to cover.
Answer:
Condition subsequent.
Explanation:
This is rampant on agreement that deal with contracts as it is seen to be a situation that terminates a previously valid contract. Closely related legal concepts in cases of this kind are treated as conditions precedent and conditions concurrent. A condition subsequent in certain contracts are known to trigger the termination of the agreement of the said contract and also eliminates rights and obligations in the ends of the two parties. It is seen also in cases that when it occurs, it terminates any duty to perform and can also terminate rights and interests that were present under the terms of the contract.
Answer:
a. 1.8716%
b. $13,937.9955
Explanation:
The computation is shown below:
a. For accrued interest
= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)
= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)
= 2.3750% × 0.7880
= 1.8716%
b. Now the dirty price is
= Face value × (accrued interest percentage + current price quoted on the bond)
= $13,000 × (1.8716% + 105.34375%)
= $13,000 × 107.21535%
= $13,937.9955
By applying the above formulas we can get the accrued interest and the dirty price
Answer:
It is advisable to process Z unit further.
Explanation:
Ans: C. Z.
Decision about further processing of Products
Particulars/ Products X Y Z
Selling Price after further processing $ 20 $ 40 $ 70
Less: Selling Price at split off $ 16 $ 26 $ 48
Incremental value $ 4 $ 14 $ 22
Less: Further Processing Cost $ 8 $ 20 $ 20
Profit / (loss) arising due to further processing (a) ($ 4) ($ 6) $ 2
Units (b) 12,000 8,000 7,000
Increase/ (Decrease) in Operational Income (a*b) ($ 48,000) ($ 48000) $ 14,000
It is advisable to process Z unit further.
