Answer:
$850,000
Explanation:
The computation of Amount of income should Torrey realize from the lease transaction is shown below:-
Amount of income should Torrey realize from the lease transaction = Sale price - Cost
= $3,850,000 - $3,000,000
= $850,000
Therefore for computing the amount of income should Torrey realize from the lease transaction we simply deduct the cost from sales price.
Answer:
- Other Comprehensive income = $37,500
- Comprehensive income = $154,500
Explanation:
Other comprehensive income:
= Realized gain on sale of available-for-sale debt securities + Unrealized holding gain arising during the period on available-for-sale debt securities - Reclassification adjustment for gains included in net income
= 11,000 + 34,000 - 7,500
= $37,500
Comprehensive income = Net income + Other comprehensive income
= 117,000 + 37,500
= $154,500
Answer:
a. Imports
b.Exports or Consumption
c. Consumption
d. Government Spending
e. Consumption.
Explanation:
a. if Gilberto buys Italian wine in the US that is part of consumption spending because the store that Gilberto buys from already imported the wine from Italy and paid all the costs that go with it but if Gilberto orders the wine from Italy that will be part of imports because the wine will have to be imported then have all those importing costs on it.
b. Juanitas father will be exporting the syrup if its from the US even though he might buy it online as he lives in Sweden .
c. Juanita will be part of consumption spending for goods and services as this will be part of the US GDP consumption spending.
d. This is part of government purchases as the government will spend on everything that includes repaving the high way.
e. Consumption spending because they are manufactured in the US and they are in the US therefore its part of the US purchases of goods and services.
Answer:
Buy 7% less houses
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded/ percentage change in income
1.40 = percentage change in quantity demanded/ 5%
Percentage change in quantity demanded = 1.4 × 5% = 7%
Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.
I hope my answer helps you
Answer:
10.77%
Explanation:
FV: $1000
PV: $845.87
PMT: $60
Nper: 40 = (25 years - 5 years ago)* 2 for semi-annual payment
We use excel to calculate semi-annual discount rate by formula Rate(Nper,PMT,-PV,FV)
= rate(40,$60,-$845.87,$1000) = 7.18%
⇒ annual rate = semi-annual rate * 2 = 7.18% * 2 = 14.36%
after-tax cost of debt = 14.36% * (1 - 25%) = 10.77%
<em>Please see excel attached for the calculation</em>
