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djyliett [7]
3 years ago
9

Based on the pure expectations theory, is the following statement true or false?

Business
1 answer:
Annette [7]3 years ago
5 0

Answer:

The correct answer is letter "B": False.

Explanation:

The Pure Expectations Theory uses long-term interest rates to predict future interest rates in the short run. Investors consider different investments to predict future interest rates. In the example, the statement indicates the opposite. It is taking a short-term interest rate (one-year bond), to calculate the return of a long-term investment (five-year bond).

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Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an
Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 =  291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0
2 years ago
Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purc
svetoff [14.1K]

Answer:

Fifo Inventory $665

Moving Average= $ 606

Lifo Inventory $ 592

Explanation:

Purchases                

Date                 Units               Unit Cost             Sales Units     Fifo Inventory

July 1                       13                     $115

<u>July 6                                                                              9              </u>

<u>                                4                      $115                                               $460</u>

July 11                       6                      $122

<u>July 14                                                                               6                            </u>

<u>                                   4                      $122                                             $488</u>

July 21                      7                        $132

<u>July 27                                                                               6                           </u>

<u>                             5                             $ 133                                         </u><u> $665</u>

<u />

Moving Average Method

=   Total Cost of Purchases/ No of items= 13*115 + 6*122+ 7*132/13+6+7

 = 1495+ 732+ 924/26= 3151/26= 121. 192

No of units in the Ending Inventory= 5 * 121.192= $ 605.96

Purchases              

Date                 Units               Unit Cost             Sales Units    Lifo Inventory

July 1                       13                     $115

<u>July 6                                                                              9              </u>

<u>                                4                      $115                                               $460</u>

July 11                       6                      $122

<u>July 14                                                                               6                            </u>

<u>                                   4                      $115                                             $460</u>

July 21                      7                        $132

<u>July 27                                                                               6                           </u>

                              1                          132                                              $132

<u>                             4                            $ 115                                          $460</u>

<u>                             5                                                                       </u><u>       $ 592</u>

6 0
3 years ago
Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the followin
fiasKO [112]

Complete Question:

Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the following medical expenses.

Drugs and medicines prescribed by doctors $300

Health insurance premiums $750

Doctors' fees $2,250

Eyeglasses $75

How much medical expense can he deduct as itemized deduction?

Answer:

Jon

Medical expense that Jon can deduct as itemized deduction:

= $375

Explanation:

a) Data and Calculations:

Adjusted gross income = $40,000

Incurred medical expenses:

Drugs and medicines prescribed by doctors $300

Health insurance premiums $750

Doctors' fees $2,250

Eyeglasses $75

Total  = $3,375

Under Tax Cuts and Jobs Act (TCJA), the medical expenses which can be deducted as an itemized deduction on the federal income tax return are only to the extent that they exceed 7.5% of adjusted gross income (AGI).

7.5% of $40,000 = $3,000

Therefore, Jon can itemize deduction of $375 in medical expense.

7 0
3 years ago
Purple Rose Corporation reported pretax book income of $500,000.
Vikentia [17]

Answer: $68,000

Explanation:

Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:

Pre-tax book income = $500,000

Less: Tax depreciation = $300,000

Net Income = $500,000 - $300,000 = $200,000

Current income tax expenses at 34% will then be:

= 34% × Net income

= 34/100 × $200,000

= $68,000

5 0
3 years ago
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every
kozerog [31]

Answer:

Explanation:

We were informed from the question that;

BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.

AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).

✓✓The amount of tax on wine = $6 - $3 = $3 per bottle

✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax

= $6 - $4

=$2 per bottle

✓✓The tax burden on Producers = Price received before tax - price received after tax

= $4 - $3

=$1 per bottle

Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.

The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)

This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.

8 0
3 years ago
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