Premium is not included in all contracts.
Offer is very important, time requirements is also a must in a contract, consideration is also stated in the contracts, but premium is not included in the contract.
Answer:
Option (B) $5,000
Explanation:
Data provided in the question:
Repayment of Loan = $50,000
Interest = 8%
Cash flow Probability
$65,000 70%
$45,000 30%
Tax rate = 0%
Now,
Interest on loan = 8% of $50,000
= $4,000
Expected value of cash flow = ∑[cash flow × Probability ]
= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )
= $45,500 + $13,500
= $59,000
The owner's expected cash flow after debt service
= Expected value of cash flow - Interest on loan - Repayment of Loan
= $59,000 - $4,000 - $50,000
= $5,000
Hence,
Option (B) $5,000
Answer:
$648,000
Explanation:
Given that;
Net income = $360,000
Interest expense = $72,000
Times interest earned = 10
Net Income + Interest expense + Tax expense ÷ Interest expense = Times interest earned.
($360,000 + $72,000 + Tax expense) /$72,000 = 10
Tax expense = $288,000
Therefore;
Sunderland's income before taxes for the year
= Net income + Tax expense
= $360,000 + $288,000
= $648,000
Answer:
social loafing
Explanation:
Social loafing refers to a psychological phenomenon where people who participate in teams will not try their best in order to achieve the team's goals because he/she believes that other team members will do it, and they will either solve the problem or perform the required task. That way they will benefit from other people's work.
This is not something that only happens in businesses, we all have a classmate that doesn't participate in group assignments because he/she knows that the others will complete it and everyone will be graded equally based on the group's performance.
