Answer:
E. $40,600
Explanation:
Calculation for the amount of net income reported on Sparty's income statement
Revenue $97,000
Less: Operating Expenses $39,000
Profit Before Tax $58,000
(97,000-39,000)
Less Taxes $17,400
Net Income $40,600
($58,000-$17,400)
Therefore the amount of net income reported on Sparty's income statement will be $40,600
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate
Answer:
maximum deductible contribution this year = $27000
so correct option is B) $27,000
Explanation:
given data
capital asset = $35000
market value of the land = $40,000
gross income = $90,000
to find out
maximum deductible contribution this year
solution
we get here maximum deductible contribution this year that is express as
maximum deductible contribution this year = Adjusted gross income × capital gain property ...............1
Limit on capital gain property is 30%
maximum deductible contribution this year = $90,000 × 30%
maximum deductible contribution this year = $27000
so correct option is B) $27,000
Answer:
The answer is option "iii) The relative price of yogurt increased"
Explanation:
The budget line is a function of a consumer's budget constraint. With the quantity of one good on the y axis and the quantity of the other good on the x axis, the budget line shows how much of each good the consumer can buy from a defined, limited budget.
In our example, the customer's budget is $20 which mean the customer can buy any combination of goods between the two extreme. One extreme is 10 of Yogurt ($20 budget/$2 Price) while the other extreme is 5 of cereal ($20 budget/$4 price). So the budget line is a downward sloping line from point 10 on the y axis to point 5 on the axis.
Option i) is incorrect since the increase in the price of yogurt would mean that the consumer can buy ONLY less of yogurt. It does not impact the quantity of cereal that he can buy. So the line will rotate downward along the <em><u>y axis</u></em>. The x axis will remain unchanged since the maximum amount of cereal Billy can buy remains unchanged. An outward rotation would occur only if the price of <em><u>cereal decreased</u></em>. This does not happen in this case therefore the line would not rotate outward.
Option ii) is incorrect because the marginal utility. The law of marginal utility states that the utility, or the pleasure, one gets from consuming a good decreases as more and more of the same good is being consumed. This does not happen in this case.
Option iii) is correct. This is called the<em> slope effect</em>. Since the Billy can consume less yogurt (since the price of yogurt increased), the relative price of yogurt increases while the relative price of cereal decreases. Think of relative price of yogurt as the number of units of cereal that Billy would have to forgo to consumer 1 unit of yogurt. Since yogurt has gotten expensive, Billy would have to give up more units of cereal to consumer 1 unit of yogurt.
