Answer:
a) Ending adjusted basis and at-risk amount $ 0
(b)The current passive loss is $12,000. Because $7,500 of the loss is used to reduce
the at-risk amount to $0, $4,500 is suspended under the at-risk rules ($12,000 − $7,500 = $4,500).
(c) The $7,500 loss that is not limited by the at-risk rules is subject to the passive loss
rules. Because the taxpayer has not generated any passive income during the year, this $7,500 current-year passive loss is suspended. Therefore, the total suspended passive loss carried forward to subsequent years totals $9,000 ($7,500 current-year suspended loss + $1,500 prior year suspended loss).
Explanation:
Answer:
The statement is True.
Explanation:
Budgeted financial statements are prepared for a future period of time. So that it is easy to anticipate certain fixed and variable costs and allocate financial resources to them.
Also, Budgeted financial statement are useful during the strategic planning process and planning on future business expansions.
Answer:
By conducting primary research using unbiased panellists, entrepreneurs can gain the latest information about the consumer's wants and needs, allowing them to adapt their product or service accordingly and gain a competitive advantage.
Explanation:
Answer:
The correct answer is letter "B": availability.
Explanation:
Availability bias or availability heuristic refers to individuals tending to relate the easiest judgment they can recall about a certain matter as its most suitable metric and even a metric that could predict future behavior on that topic. This happens because those people make assumptions based on what they can remember of that matter which might not be necessarily the most accurate input about it.
Therefore,<em> if a manager is measuring performance only placing focus on employees' recent and not past behavior, the manager is implementing availability bias.</em>
Answer:
Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.
Explanation:
yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%
if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%
we can use the approximate yield to maturity formula to find the market price of Chris's bond:
2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]
0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]
0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV
1.2 + 0.012MV = 8 - 0.05MV
0.062MV = 6.8
MV = 6.8 / 0.062 = 109.68
