Answer:
The correct answer is e. a. and b.
Explanation:
Capital assets are assets of a permanent nature used in the production of income, such as machinery, buildings, equipment, land, etc. It must be distinguished from inventory.
Painting is a capital asset, but it is also a personal use activity asset sold at a loss. The loss is not deductible.
Answer:
110
Explanation:
The computation of the price index is presented below:
= (Cost of purchase those identical goods in 2015) ÷ (Cost to purchase the items in 2014) × 100
= ($11,000) ÷ ($10,000) × 100
= ($11,000) ÷ ($10,000) × 100
= 110
We simply applied the above formula so that the price index could come by considering the cost of 2014 and cost of 2015
<span>The relationship between consumer expectations and economic performance can be explained easily.The expectations of changes in income can lead to a reduction in confidence and as a result there is a fall in spending of income. An improvement in consumer expectations about the health of the economy will increase confidence and planned spending.Similarly, </span><span>If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now.</span>
Answer:
false
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Monetary amounts should be allocated to intangible benefits and incorporated into the calculation of NPV
