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Basile [38]
3 years ago
11

Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exc

hange rate of $1.75 per pound. If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation?
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.

We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros

E.G Buy a $1000 from the market for £555(10,000*1/1.8)

After that we can by 28.5(1000/35) ounces of gold from that and sell the gold for £571(20*28.5). This way we make a profit of £16 (571-555) without taking any risk.

Explanation:

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Information related to Tamarisk, Inc. is presented below. 1. On April 5, purchased merchandise on account from Culver Company fo
GREYUIT [131]

Answer:

Required a

<u>April 5,</u>

Merchandise $38,900 (debit)

Accounts Payable ; Culver Company  $38,900 (credit)

<u>April 6</u>

Freight Cost $800 (debit)

Cash $800 (credit)

<u>April 7</u>

Equipment $39,900 (debit)

Accounts Payable $39,900 (credit)

<u>April 8</u>

Accounts Payable ; Culver Company  $5,000 (debit)

Merchandise $5,000 (credit)

<u>April 15</u>

Accounts Payable ; Culver Company  $33,900 (debit)

Discount Received $678 (credit)

Cash $33,222 (credit)

Required b.

Accounts Payable ; Culver Company  $33,900 (debit)

Cash $33,900 (credit)

Explanation:

When Tamarisk, Inc. paid the balance due to Culver Company on April 15, the payment is made within the discount period. Thus Tamarisk, Inc <em>is granted a discount of 2%</em> and pays the Account at $33,222 (net of credit granted on merchandise previously returned) .

However, when Tamarisk, Inc. paid the balance due to Culver Company on May 4 instead, the payment is made outside the discount period. Thus Tamarisk, Inc is <em>not granted a discoun</em>t  pays the Account in full at  $33,900 (net of credit granted on merchandise previously returned) .

6 0
3 years ago
Clarice became very ill in August of 2019 and was unable to work the rest of the year. She had only $30,000 of income from her j
CaHeK987 [17]

Answer:

total taxable income = $73,000

tax liability = $7,505

Explanation:

Clarice's ordinary income $30,000

Clarice's capital gains:

  • selling of stock = $34,000 - $16,000 = $18,000
  • selling of coin collection = $55,000 - $30,000 = $25,000
  • total long term capital gains = $43,000

Clarice's taxable income = $73,000

Clarice's ordinary income tax rate 2011:

ordinary income = $30,000 - standard deduction $5,800 = $24,200

  • 10% on taxable income from $0 to $8,500  = $850
  • 15% on taxable income over $8,500 to $34,500 = $2,355

ordinary income taxes = $3,205

Clarice's capital gains tax rate 2011 = 10%

capital gains taxes = $43,000 x 10% = $4,300

total tax liability = $7,505

5 0
3 years ago
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (U
Andrew [12]

Answer:

Given that,

Taxable income = $75,000

Interest from an investment = $10,000

Using the U.S tax rate schedule in 2017

(a) Federal tax will he owe = $5,226.25 + 25% × ($75,000 - $37,950)

                                            = $5,226.25 +  $9262.5

                                            = $14,488.75

(b) Average\ Tax\ Rate = \frac{Total\ Tax}{Taxable\ Income}

    Average\ Tax\ Rate = \frac{14,488.75}{75,000}

                                             = 19.32%.

(c)Effective\ Tax\ Rate = \frac{Total\ Tax}{Total\ Income}

Effective\ Tax\ Rate = \frac{14,488.75}{75,000 + 10,000}

                                        = 17.05%          

(d) Chuck is currently in the 25 percent tax rate bracket.

His marginal tax rate on increases in income up to $16,900 and deductions from income up to $37,050 is 25 percent.                                                

6 0
3 years ago
The difference between part-time work and job sharing is that a. people in job-sharing positions still receive benefits because
Helga [31]

Answer:

b. jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees

Explanation:

Based on the scenario been described, we can say that the difference between part time job and job sharing is, jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees, so option b is the correct answer. In part-time job, job are done in short period of time, whereby the employee will come and do his/her job within a short period of time and leave, while job sharing is a full time job but is been shared among full time employees to do their turns.

6 0
3 years ago
Read 2 more answers
The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock div
adell [148]

Answer:

Common stock = $110,000

Additional paid-in capital  = $130,000

Retained earnings = $170,000

Explanation:

Computation of the given data are as follows:

Common stock after issuing stock dividend = $100,000 + ( 10,000 ×10% × $10)

= $100,000 + 10,000 = $110,000

Additional paid-in capital after issuing stock dividend = 120,000 +  ( 10,000 ×10% × $10)

= 120,000 + 10,000 = $130,000

Retained earnings after issuing stock dividend = 150,000 +  ( 10,000 ×10% × $20)

= 150,000 + 20,000 = $170,000

7 0
3 years ago
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