All of them. Trust me :)) I read that whole chapter in that first section
Answer: a. Gary recognizes a $1,000 LTCG
Explanation:
Long Term Capital Gain is calculated by the formula:
= Distribution from company - Basis in stock - Ordinary income earned during the year
= 16,000 - 4,000 - 11,000
= $1,000
First statement is therefore correct that Gary would recognize an LTCG of $1,000.
Answer:
4.524%
Explanation:
Jackson's marginal tax rate = 22%
after tax return of Sundial Incorporated bonds = 5.8% x (1 - 22%) = 4.524%
since municipal bonds are not taxed by the federal government, in order to compare the yields we must calculate the after tax return of corporate bonds. On the other hand, federal bonds do not pay state and local taxes.
Answer:
The correct answer is B
Explanation:
Due to the implementation lag, recognition lag and legislative lag linked with the enacting fiscal policy, the policies focus on the smoothing the business cycle, which sometimes have the opposite effect.
The risk of the policies being the pro- cyclical instead of being advantageous in a time of recession diminishes or decline when the recessions are severe and long.
It is more likely the fiscal policies which could de implemented or executed and developed in time if it will take a long time for the economy to self- correct.
Answer:
The correct answer is: contribution margin income statement.
Explanation:
The contribution margin income statement organizes costs by behavior and not by function thus it is not used for financial reporting. The variable expenses are deducted from sales to be recorded at a contribution margin. Fixed expenses are subtracted from the net profit obtained at the end of the accounting period.
