Answer:
He does not report any gross income as life insurance proceeds are exempted from tax.
Explanation:
As a rule life insurance proceeds to a beneficiary are not taxable, they are viewed as non taxable inheritance of the deceased to the beneficiary.
However if Ellie had instructed the insurance company to hold the funds for sometime before paying Jason, the interest earned during that period will be taxable.
Answer:
B. the price of an asset equals its fundamental value.
Explanation:
- If the traders in the market have a rational expectation then the price of the asset is equal to the fundamental values and if a stocks is trading at a price at its fundamental values then the investor will be making a rational expectation.
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Answer: An increase in the expected price level shifts short-run aggregate supply to the D. Left, and an increase in the actual price level does not shift short-run aggregate supply.
Explanation: Aggregate supply is the total supply of goods and services that are available in a given market. The producers have production levels match a specific amount of items and then disperse them to the market. As prices change, then quantity supplied and purchased fluctuates accordingly.
Answer:
Explanation:
The journal entries are shown below:
(A) Cash A/c Dr $47,664
Discount on note payable $27,336
To Note Payable $75,000
(Being note payable is issued)
(B) Interest expense A/c Dr $5,719.68
To Discount on note payable $5,719.68
(Being interest expense recorded)
The interest expense is computed by
= Cash received × implicit interest rate
= $47,664 × 12%
= $5,719.68
