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2 years ago

The unemployment rate may underestimate the true extent of unemployment if:

Business

1 answer:

son4ous [18]2 years ago

5 0

Answer: c.

Explanation: The unemployment rate may underestimate the true extent of unemployment if there are a large number of people working in the underground economy . While the underground economy also known as the black economy may conjure up images of drug deals and prostitution rings, the term actually has much broader scope. It refers not only to illegal economic activity, but all economic activity that goes unreported to government authorities and consequently, avoids being taxed. one of the primary reasons the underground economy exists is that people are trying to evade taxes. But increased government regulations that can make the cost of doing business higher also create an incentive to avoid reporting certain economic activity to the government. An increase in the number of unemployed increases the number of people who work in the black economy because they have more time. On the other hand, an increase in unemployment implies a decrease in the shadow economy.

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g had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account balances of R

andrew-mc [135]

Answer: $101 million

Explanation:

The amount that Ross should report as income tax expense in its 2021 income statement will be calculated thus:

First, we'll calculate the deferred tax asset in valuation allowance which will be:

= Deferred tax asset before valuation allowance - Deferred tax asset after valuation allowance

= $170 million - $130 million

= $40 million

Then, income tax expense will be:

Income taxes payable= $90 million

Add: DTA not be realized = $170 million × 30% = $51 million

Less: Deferred tax asset in valuation allowance = ($40 million)

Income tax expense = $101 million

5 0

3 years ago

A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li

sweet-ann [11.9K]

Answer:

C. A portfolio consisting of about three randomly selected stocks from different sectors

Explanation:

Standard deviation helps measure risks. It determines market volatility or the spread of asset price from their average price. When the volatility of prices are rapid, standard deviation becomes high which in turn means investment is risky and vice versa. Diversification of investment tend to reduce risk. A portfolio containing a diversified randomly selected stock from three sectors would have a lower standard deviation (risk) than the other portfolios stated in the question.

Diversification is a form of risk management.

3 0

3 years ago

Read 2 more answers

Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturi

AnnyKZ [126]

Answer:

Universal Manufacturing

Equivalent unit cost for conversion cost is $18.

Explanation:

a) Data and Calculations:

Beginning work in process = 10,000 units

Ending work in process = 15,000 units

Units started = 30,000 units

Units completed = 25,000 units

Cost of: Materials Conversion

Beginning WIP $60,000 $150,000

Current costs 180,000 480,000

Equivalent units of production: Materials Degree Conversion Degree

Units started and completed 25,000 100% 25,000 100%

Ending WIP 15,000 100% 10,000 2/3

Total equivalent unit 40,000 35,000

Total cost of production:

Cost of: Materials Conversion

Beginning WIP $60,000 $150,000

Current costs 180,000 480,000

Total cost $240,000 $630,000

Cost per equivalent unit:

Materials Conversion Total cost

Total cost $240,000 $630,000 $870,000

Total equivalent unit 40,000 35,000

Cost per equivalent unit $6 $18

b) Using the weighted average method, the costs in beginning inventory and current period costs are added and divided by the equivalent units of materials and conversion costs in order to establish an equivalent unit cost. The equivalent cost per unit in process costing describes the average unit cost for each product.

6 0

3 years ago

A consumer who is armed with information and is narrowing down his choices by comparing the pros and cons of each remaining opti

Bas_tet [7]

The answer to the question above is "evaluation of alternatives" which is the step when a consumer arms with information and narrows down his/her choices by comparing the pros and cons of each remaining option. There is several steps of consumers decision making process. This step is the third step in the process.

8 0

3 years ago

You want $1.5M to retire in 45 years. You have $15,000 today. If you can deposit the funds in a money market account which earns

sleet_krkn [62]

Answer:

$10,020

Explanation:

The computation of the large amount that should be deposited is shown below:

Future value of annuity is

= Annuity × [(1+rate)^time period-1] ÷ rate

= Annuity × [(1.045)^45-1] ÷ 0.045

= Annuity × 138.8499651

Future value = Present value (1 +interest rate)^number of years

where

= $15,000 × (1.045)^45

Now

The total future value: is

$1,500,000 = $15,000 × (1.045)^45 + Annuity × 138.8499651

$1,500,000 = ($15,000 ×7.24824843) + Annuity × 138.8499651

Annuity = ($1,500,000 - $108,723.7264) ÷ 138.8499651

= $10,020

4 0

2 years ago