Answer:
Holly can deduct $145 as business expense.
Explanation:
As per IRS, meals expenses are 50% deductible provided they are incurred for business purpose. Earlier entertainment expenses were also 50% deductible, but as of 2018, they are no more deductible for tax purpose.
Here, Holly closed the deal at dinner. So, 50% of meal expenses are deductible as business expense for tax purpose. So, $145 (50% of 290) can be claimed as deduction by Holly while filing her income tax returns.
Prior to 2018, entertainment expenses were 50% deductible if incurred for business purpose. In this case since the deal was closed at dinner, price of theatre tickets are not considered business expense. Moreover, even if they were qualified business expense, they are not deductible since 2018.
Education expensive budget. That means. education investment property plan
Answer: May either rise or fall
Explanation:
The differnce between the Real GDP and the Nominal GDP is inflation. Whereas Nominal GDP is calculated with the current prices, Real GDP uses the prices from a base year so as to negate the effects of inflation.
If Real GDP declines in a given year therefore, nominal GDP could rise if the inflation is high enough to make it seem as though the country is producing more goods and services even if this is not the case.
However, Nominal GDP could also fall if the economy is simply contracting with a low inflation rate and this was the reason that the Real GDP fell as well.
Answer:
Common shares outstanding = 40,000,000
Explanation:
We will calculate as follows:
Common shares outstanding = common equity / price per share
Common shares outstanding = 800,000,000/ 20
Common shares outstanding = 40,000,000
The market value added (MVA) is not taken into account because it´s an amount that came from the market and not from the relationship between the company and the owners
Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08