Answer:
14.58%
Explanation:
Return on Bond is the actual rate that is received by an investor on investment in bond.
As per given data
After Tax return = 10.50%
Tax Rate = 28%
Deduction of 28% withholding tax will be made on the return of the bond in that country where investment is made and investor will have return net of tax.
We can calculate the after tax return on the bond as follow
After tax return = Before tax return x ( 1 - Tax rate )
10.5% = Before tax return x ( 1 - 28% )
0.105 = Before tax return x ( 1 - 0.28 )
0.105 = Before tax return x 0.72
Before tax return = 0.105 / 0.72
Before tax return = 0.1458 = 14.58%
<span>The AICPA’s Statements on Auditing Standards is a guideline for auditors. This guideline shows what the minimal standards are in order for an auditor to perform their work correctly. These guidelines need to be followed in order to ensure accuracy and efficiency.</span>
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
1. Insurance expense for 6 months = 12,960 x 6/36
= $2,160
Prepaid insurance on December 31, 2021 = 12,960 - 2,160
= $10,800
2.Interest expense for 2 months = 220,000 x 12% x 2/12
= $4,400
Kindly comment if you need further assistance. Thanks
Answer:
Draw the person's budget constraint with the income guarantee
