Answer: ($4000)
Explanation:
Based on the information given in the question, the amount that must be added back to taxable income (loss) in calculating their net operating loss, will be:
Dividend income = $16000
Add: Interest income = $14000
Add: Business capital gain = $2000
Less: Business loss = $10000
Less: Itemized deduction = $26000
Taxable loss = ($16000 + $14000 + $2000) - ($10000 + $26000)
= $32000 - $36000
= - $4000
The net delivered cost of purchases is $270920
<u>Explanation:</u>
The given data in the question is as follows:
purchases = $256900, freight charges paid = $36870, purchase returns and allowances = $13690, purchase discounts = $9160
The net delivered cost of purchases is calculated as follows:
Purchases plus frieght charges minus purchase returns and allowances and minus purchase discounts
Purchases = $256900
add: freight charges paid = $36870
less: purchase returns and allowances = $13690
less: purchase discounts = $9160
net delivered cost = $270920
Therefore, the correct answer is $270920
Answer:
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?
The nominal interest rate = 8.86%.
Explanation:
Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%
Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%
Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.
Therefore, the nominal interest rate for the question given = 8.86%.
Debit Advertising expense $400, credit accounts payable 400.
