Answer:
c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS
Explanation:
Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA
we know that
Giving assessment administrations is on the standard premise that it has a decent confidence conviction that the government form position can be supported whenever tested
therefore
option c is correct
c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS
Answer:
A) What is the GDP price index for 1984, using 2005 as the base year?
-
the GDP price index using 2005 as base year = [($15 / $20) x 100] = 75
B) By what percentage did the price level, as measured by this index, rise between 1984 and 2005? ...percent.
-
the price level increased by: [(100 - 75) / 75] x 100 = 33.33%
C) What were the amounts of real GDP in 1984 and 2005?
-
In 1984, real GDP = $20 x 7,000 buckets = $140,000 or we can also use another method = ($15 x 7,000) / 0.75 = $105,000 / 0.75 = $140,000. The answer using both methods should be the same.
-
In 2005, real GDP = $20 x 22,000 buckets = $440,000
Explanation:
Note, for private spending, <em>consumption</em> refers to purchases usually made for present needs, while <em>investment</em> refers to purchases that may provide. For government spending, <em>consumption </em>refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while <em>investment </em>purchases are done with the perceived future benefits in mind.
<u>Private Spending</u>
- Laundromats buying washing machines = Investment
- People buying houses = Investment
- People buying newspapers = Consumption
- People buying food = Consumption
<u>Government Spending</u>
- Payment for public safety employees = Investment
- Building hospitals = Investment
- Building roads = Investments
- Buying military equipment = Investment
Answer:
a. 10.04%
b. $82.78
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 0.72 × (12% - 5%)
= 5% + 0.72 × 7%
= 5% + 5.04%
= 10.04%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
b. Now the intrinsic value would be
= Expected dividend ÷ (Required rate of return - growth rate)
= $5 ÷ (10.04% - 4%)
= $5 ÷ 6.04%
= $82.78
<span>Radio Act of 1927
The FCC still uses this standard as part of its consideration when issuing broadcast licenses.</span>
