Answer:
$265 billion
Explanation:
The computation of the GDP in year 2 is shown below:
= GDP in year 1 + increase in the business inventories
= $250 billion + $15 billion
= $265 billion
We simply added the GDP in year 1 with the increase in the business inventories so that the GDP in year 2 could come
Answer and Explanation:
The computation is shown below:
Current promised return on debt is
= $53,400 ÷ $45,800 - 1
= 16.60%
And, the expected return on debt is
The expected amount would be
= $53,400 × 30% + $44,000 × 70%
= $16,020 + $30,800
= $46,820
Now the expected return on debt is
= $46,820 ÷ $45,800 - 1
= 2.23%
Answer: Option b
Explanation: Perfect competition refers to a market structure in which there are large number of small sellers selling identical products in the market. Due to large number of participants no individual firm is able to affect prices on the basis of their operations.
It is not possible earn abnormal profits in such a market structure.
Hence from the above we can conclude that the correct option is B.
Solution :
It is given that Christopher is the cash method and a calendar year taxpayer. He also made the cash payments that is related to the business for this year.
We have to assume marginal tax rate = 30 %
Therefore, the after tax cost for the payments are :
a). $ 500 - not deductible as it was a penalty for the violation.
b). 765 - half of the interest is not deductible. i.e. 900 x (1 - (0.5 x 0.3))
c). 420 - fully deductible, i.e. 600 x (1 - 0.3)
d). 450 - not deductible
This was 4 years ago - 32 Michele - 35 Shelly
Now - Michele is 36, Shelly is 39
