Answer:
A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.
Explanation:
Loans received under $385 should not be reclassified as equity.
Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.
Therefore,
Interest expenses = 600000 x 3%
= $18000
Answer:
Yes, because the statement was false.
Explanation:
Breach of warranty is defined as a misrepresentation of the quality or type of a product. The seller fails to fulfil a promise or claim made during a transaction.
When a good is being sold there are certain assertions which the seller must stand behind.
In this scenario Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it.
The fact that the stereo did not have quadrophinic speakers should have been discovered and stated by Mark. The misinformation he got when buying the stereo does not clear him of breach of warranty
Answer:
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $12.50.
Wage Labor Demanded Labor Supplied
$12.50 375,000 625,000
This will result in a surplus of labor (625,000 higher than 375,000)
Which of the following statements are true?
- Binding minimum wages cause structural unemployment. As with all price floors, a deadweight loss results, because the quantity supplied is much greater than the quantity demanded. In this case, the price of labor is the wage, and the deadweight loss = structural unemployment
-
In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.
Since a labor surplus exists, the price of labor should start to decrease in order to match the equilibrium price.
-
If the minimum wage is set at $12.50, the market will not reach equilibrium. The quantity supplied of labor is much greater than the quantity demanded for labor resulting in a surplus.
TRUE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Answer:
165,000 pounds
Explanation:
A Purchase Budget is required to determine the quantities and cost of purchases required for use in production.
Materials Purchase Budget for Second Quarter (Pounds)
Budgeted Production Materials (80,000 x 2) 160,000
Add Budgeted Closing Materials (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Budgeted Opening Materials (80,000 x 2 x 25%) (40,000)
Budgeted Material Purchase (pounds) 165,000
Therefore,
Budgeted purchases of material for the second quarter would be 165,000 pounds