<span>Fixed budget, in a fixed budgetary control
system, the master budget is based on a single prediction for sales volume or other activity level. The budgeted amount for each cost
essentially assumes that a specific amount of sales will occur. A fixed budget, also called a static budget, is<span> based on a single predicted amount of
sales or other measure of activity.</span></span>
Answer:
a. Municipal bond
b. Yes. To Corporate Bond.
Explanation:
Municipal bonds are tax exempt so the better option will be the one offering a higher return after it is adjusted for tax.
a. Corporate after-tax rate = 9.5% * ( 1 - 33%)
= 0.06365
= 6.4%
<em>Municipal rate is higher at 7% and so is a better option. </em>
b. Corporate after-tax rate = 9.5% * ( 1 - 15%)
= 0.08075
= 8.08%
<em>Corporate bond return is now higher than Municipal bond so is a better option.</em>
Answer:
a. $5,910
Explanation:
The computation of the deduction amount for depreciation is shown below:
= (Rental beach house - the amount of the land value) × depreciation rate
= ($900,000 - $600,000) × 1.97%
= $300,000 × 1.97%
= $5,910
Refer to the depreciation table and we assume the year would be 1 and the recovery period is 19 years is 1.97%
True................................