Answer: the steady-state amount of investment can be thought of as a break-even amount of investment because: the quantity of investment just equals the amount of: "B) capital needed to replace depreciated capital and to equip new workers."
Explanation: According to the Solow growth model an economy is in a steady state when it makes the most efficient use of its resources. That is, the state in which the saving or investment is equal to the depreciation of capital.
Its return on assets is 8.5%.
<h3>What is
return on assets?</h3>
The return on assets measures how profitable a company's assets are at generating income.
Return on assets (ROA) measures how lucrative a company is in relation to the assets or resources it owns or controls. ROA can help investors uncover potential stock opportunities because it reveals how efficient a firm is at leveraging its assets to produce profits.
Return on Equity (ROE) is commonly defined as net income divided by equity, whilst Return on Assets (ROA) is defined as net income divided by average assets.
Return on Assets (ROA) is a sort of ROI metric that assesses a company's profitability in relation to its total assets.
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Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
Based on the other transactions, the amount of dividends that was paid that year was <u>$158,704.</u>
<h3>After tax Net income </h3>
= Taxable income x ( 1 - tax)
= 198,600 x ( 1 - 21%)
= $156,894
<h3>Dividends during year</h3>
= Opening retained earnings + After tax income - Closing retained earnings
= 318,750 + 156,894 - 316,940
= $158,704
In conclusion, the dividends paid were $158,704.
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Answer:
The statement is: True.
Explanation:
The Adjusted Gross Income (<em>AGI</em>) is a measure based on individuals' gross income that serves as the basis for different deductions, among them, taxes. Taxpayers can request a tax credit based on certain expenditures that can be eligible for deduction. To do so, they must itemize those expenses in <em>Form 1040</em> (Schedule A). Otherwise, the deduction will be based on the taxpayer's AGI.
