Answer:
The correct answers are letters "A", "B", "C", and "D".
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is calculated subtracting the return of the chosen option minus the return of the option left behind. It is imperative to consider the period in which the calculation is made because it can determine if the decision taken was the best or not.
In some cases, the opportunity cost can be positive or negative. Opportunity cost can also be defined as the value of the opportunities forgone or the net value (option forgone minus option dismissed) of the opportunities obtained.
For a purchase of a new passenger automobile on august 17, 2022, for $30,000 which is used 40% for business and 60% for personal use during the year, cost recovery deduction for the car for 2022 is $1,200. (Option A)
Cost recovery refers to the business ability to recover (deduct) their investment costs and plays an important role in establishing a business' tax base and can influence investment decisions. An automobile is a listed property which refers to a specific form of depreciable property that may be utilized primarily for business purposes. In order for a property to be considered listed property, it must be used for company’s business more than 50%. However, as the automobile purchased is used 40% for business, it does not qualify as listed property, neither 179 expensing (that allows businesses to write off the entire cost of an eligible asset in the first year) or additional first year depreciation can be taken. As a general rule, an automobile loses 10% of its value (depreciation) as soon as it is driven. Hence, the depreciation would be $30,000*0.1 = $3000. The cost recovery deduction would be $3000*0.4 = $1200.
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Answer:
b.market interest rate is higher than the contractual interest rate.
Explanation:
A bond sold at a price below its face value is said to be issued at a discount. An investor pays a price that is lower than they will claim at maturity. For example, a bond with a face value of $ 1000 and trades at $ 950 is trading at a discount.
Bonds are issued at a discount when the prevailing market interest rate is higher than the interest rate the bond is offering. A bond interest rate or coupon rate defines its attractiveness to investors. If the coupon rate is higher than the market rate, the bond will be in great demand. But if the coupon rate is lower than the market, the bond will be less attractive to investors. In such a scenario, the bond is issued at a discount to attract investors.
Answer: PMI will automatically be dropped when the balance reaches $117,000.
Explanation: PMI stands for private mortgage insurance. This is an insurance policy that banks often require lenders to have when they do not have a 20% down payment on a new home.
PMI is automatically dropped with the amount of the mortgage due is reduced to 78% of the original appraised value of the home. In this case, the home was originally purchased for $150,000. 78% x 150,000 = $117,000. When the loan reaches $117,000 the pmi will automatically be dropped.
I would say C is the answer bc that’s would i would do in that situation.