Answer:
They will be less likely to rent an apartment and more likely to own a home. A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve shifts to the left.
For normal economic goods, when real consumer income rises, consumers will demand a greater quantity of goods for purchase. ... When nominal income increases without any change to prices, this means consumers can purchase more goods at the same price, and for most goods, consumers will demand more.
Explanation:
Answer:
Qualified Business Income Deduction is $9,800
Tax liability = $4,564
Explanation:
Qualified business income is calculated by subtracting an individual's ordinary deduction from a qualified business or trade from the individual's ordinary income.
Net income = $61,000
Standard deduction = $12,000
Modified taxable income;
$61,000 - $12,000 = $49,000
QBI Deduction (Sec 199A) is the lesser of:
[0.2 × 49,000 < 0.2 × 61,000]
$9,800 < $12,200
Therefore Qualified Business Income Deduction is $9,800
Taxable income = $(49,000 - 9800) =$39,200
John d. Rockefeller stands out among nineteenth-century business leaders because of his innovative organization called vertical integration.
<h3>What is vertical integration?</h3>
Vertical integration is a procedure that entails acquiring corporate operations in order to produce the same thing.
- When a business chooses vertical integration, they typically have control over some phases of product production and delivery.
- Vertical integration can also be defined as the union of businesses engaged in the same line of work but at various stages of production or distribution.
- For instance, because it involves many phases in its business, Amazon might be classified as one of the organizations with vertical integration.
- In addition to acting as a platform for buyers and sellers, Amazon also has its own distribution network and sells some of its own goods and services.
To learn more about vertical integration, visit:
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Answer:
Dr cash $120,000
Cr Notes payable $120,000
Dr interest expense $2,400
Dr notes payable $30,000
Cr cash $32,400
Explanation:
The issuance of the notes payable of $120,000 means that White Corporation's cash inflow has increased by $120,000 while its corresponding loan obligation has also gone up by the same amount.
On 31 December 2018,White Corporation would need to repay $30,000 principal plus interest of $2,400 ($120,000*2%).The interest payment is debited to interest expense while $30,000 repayment is debited to notes payable and cash is credited with the total of $32,400
Answer:
b. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
Explanation:
The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).
