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adell [148]
4 years ago
7

Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,300 in investment expenses. T

hey also incur $3,500 of investment interest expense during the year. The Porters’ income for the year consists of $156,000 in salary, and $2,920 of interest income.
Business
1 answer:
Veseljchak [2.6K]4 years ago
4 0

Answer:

$3500 is deductible

Explanation:

The question is not complete . Please see the solution below :

The Investment Interest expense can be set off against Net Investment income ( Interest income - Investment expenses i.e $25000-$2000=$23000) to the extent and the remaining is carried forward to the next year. so here the investment interest expense is wholly set off against the interest income i.e $3500 is deductible

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The following statements are true. Explain why. a. If a bond’s coupon rate is higher than its yield to maturity, then the bond w
krok68 [10]

Answer:

A Bond's current market value represented by B_{0} is the present value of a bond as on today. Present value of a bond is it's future cash flows in the form of coupon payments and principal repayment discounted at investor's expectation in the market also referred to as Yield to maturity(YTM).

Present value of a bond is given by the following equation,

B_{0} = \frac{C}{(1\ +\ YTM)^{1} }  +\ \frac{C}{(1\ +\ YTM)^{2} } \ +\ ......+\ \frac{C}{(1\ +\ YTM)^{n} } \  +\ \frac{RV}{(1\ +\ YTM)^{n} }

where C= Annual coupon payments

YTM = Yield to maturity/ cost of debt/ market rate of return on similarly priced bonds

RV = Redemption value of bond

n = number of years to maturity

<u>a. A bond's coupon rate is higher than it's yield to maturity, then the bond will sell for more than face value.</u>

Hence, if the company pays more interest than what is paid in the market on similarly priced bonds, such bonds shall sell at more than their face value.

<u>b. If a bond's coupon rate is lower than it's yield to maturity, then the bond's price will increase over it's remaining maturity.</u>

Similarly, if a bond pays lower rate of interest than the market rate of interest on similarly priced bonds, the bond shall sell at lower than it's face value and the price will increase over the remaining life of such bonds.

         

6 0
3 years ago
Henry Carr and Noreen Mason formed a partnership, dividing income as follows: annual salary allowance to Carr of $42,000; intere
Evgesh-ka [11]

Answer:

$239,060

Explanation:

The computation of the net income distributed to Carr as follows;

<u> Particulars     Carr      Mason      net income distributed   Non-allocated </u>

Net income                                                                              $442,000

Salary

allowance     $42,000                  $42,000                            $400,000

Interest

on capital     $4,410   $10,290      $14,700                            $385,300

left amount  $192,650 $192,650  $385,300                        $0

Net income  $239,060

8 0
3 years ago
brazil spent billions of dollars to host the soccer world cup and the summer olympics. the opportunity cost of hosting these eve
azamat

The opportunity cost of hosting these events is the next best alternative bundle of goods and services that could be provided.

<h3>What is meant by opportunity cost?</h3>

This is the term that is used to talk about the foregone alternative. It is what would have to be neglected because of another choice that has to be taken.

What this means is that the money that would have been spent on other aspects of the government was spent on the world cup so the benefits that the people would have gotten from the options are lost.

Hence we can say that The opportunity cost of hosting these events is the next best alternative bundle of goods and services that could be provided.

Read more on opportunity cost here

brainly.com/question/1549591

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7 0
1 year ago
An important difference between accounting and other 4 functions, such as marketing and management, is that
Stolb23 [73]
Well, since there's no options

Accounting : providing information regarding all financial aspects in the company

Marketing : determining kinds strategies to introduce  company's products to the market

Management : Organizing all part of the company in order to reach company's goal
3 0
4 years ago
Who influences the total output of the Egyptian economy?
shepuryov [24]

Answer:

Egyptian house holds yes

4 0
3 years ago
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