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Nitella [24]
3 years ago
14

Perle, a dentist, billed Wood $600 for dental services. Wood paid Perle $200 cash and built a bookcase for Perle’s office in ful

l settlement of the bill. Wood sells comparable bookcases for $350. What amount should Perle include in taxable income as a result of this transaction?
Business
1 answer:
Naddika [18.5K]3 years ago
7 0

Answer:$600

Explanation:

The full amount of$600 will be credited to Perle as his service income on completion of the dental services and debited to wood account as a debtor.

The $200 will reduce the debt to $400 , the $400 which will be recorded through a journal by debiting bookcase and crediting Wood.

Narration. Recognition of bookcase built as debt payment.

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Wiser Pharmaceutical has received a utility patent from the US Patent and Trademark Office. It sold this patent to another pharm
Solnce55 [7]

Answer: C. Intangible assets


Intangible Assets refer to those assets that have no physical form and hence cannot be touched. They may be identified or unidentified.  

Those intangible assets that can be separated from a company’s assets and can be sold are known as identifiable intangible assets. These include intellectual property rights, patents, copyrights, trademarks etc.  

Those intangible assets that can’t be physically separated from the company are known as unidentifiable intangible assets. e.g. goodwill.


6 0
3 years ago
Supply-side policy is designed to a. Move the economy from a point inside the production possibilities curve to a point on the c
Lera25 [3.4K]

Answer:

c. Shift the production possibilities curve outward and shift the aggregate supply curve to the left.

Explanation:

A supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.

This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.

Generally, supply-side economist are of the opinion that one of the best way to grow a country's economy is by introducing tax cuts so as to increase the incentive for households to work and invest.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of supply states that the higher the price of goods and services, the lower the supply.

An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;

1. Technology is fixed.

2. Resources are fixed.

Hence, a supply-side policy is designed to shift the production possibilities curve outward and shift the aggregate supply curve to the left.

5 0
3 years ago
Suppose that 6-month, 12-month, 18-month, 24-month, and 30-month zero rates are 3%, 3.2%, 3.4%, 3.5%, and 3.6% per annum with co
Dima020 [189]

Answer:

cash price: 102.78

Explanation:

In bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at the required rate of return (or yield). Thus, the value of the bond can be determined as in working shown in file attached.

there is an inverse relationship between the yield of a bond and its price or value. The higher rate of return (or yield) required, the lower the price of the bond, and vice versa. However, it should be noted that this relationship is not linear, but convex to the origin.

7 0
3 years ago
Your bond portfolio consists of $30 million worth of Treasury STRIPS with 7 years to maturity, and $10 million of Treasury notes
Verdich [7]

Answer:

<em>d) Slightly greater than 4 years</em>

Explanation:

<em>The portfolio's Macaulay period (MaD) is the mean maturity of its retained earnings.</em>

Fifty per cent of cash flows (in terms of PV) come after three years and another fifty per cent arrive after five years, so the MaD is 0.53 + 0.55 = 4.

We must divide the MaD by (1+ytm/2) to get Modified Duration (MoD).

<em>Then portfolio MoD is </em><u><em>4/(1 + 0.02/2) = 3.96.</em></u>

5 0
3 years ago
Your portfolio is invested 30 percent each in Stocks A and C, and 40 percent in Stock B. What is the standard deviation of your
Assoli18 [71]

Answer:

portfolio's standard deviation = 6.18%

Explanation:

we must first determine the expected returns for each stock:

stock A = (0.15 x 31%) + (0.6 x 16%) + (0.2 x -3%) + (0.05 x -11%) = 13.1%

stock B = (0.15 x 41%) + (0.6 x 12%) + (0.2 x -6%) + (0.05 x -16%) = 11.35%

stock C = (0.15 x 21%) + (0.6 x 10%) + (0.2 x -4%) + (0.05 x -8%) = 7.95%

then we must determine the variance of each stock's return:

stock A = {[0.15 x (31 - 13.1)²] + [0.6 x (16 - 13.1)²] + [0.2 x (-3- 13.1)²] + [0.05 x (-11 - 13.1)²]} / 4 = (48.0615 + 5.046 + 51.842 + 29.0405) / 4 = 33.4975

stock B = {[0.15 x (41 - 11.35)²] + [0.6 x (12 - 11.35)²] + [0.2 x (-6- 11.35)²] + [0.05 x (-16 - 11.35)²]} / 4 = (131.868375 + 0.2535 + 60.2045 + 37.401125) / 4 = 57.4219

stock C = {[0.15 x (21 - 7.95)²] + [0.6 x (10 - 7.95)²] + [0.2 x (-4- 7.95)²] + [0.05 x (-8 - 7.95)²]} / 4 = (25.545375 + 2.5215 + 28.5605 + 12.720125) / 4 = 17.3369

portfolio's variance = (0.3 x 33.4975) + (0.4 x 57.4219) + (0.3 x 17.3369) = 38.21908

portfolio's standard deviation = √38.21908 = 6.18%

5 0
2 years ago
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