Select the correct answer.

Hyundai is considering opening a plant in two neighboring states.

Svetach [21]

Answer:

a. What is the after state taxes profit in the state with the 10% tax rate?

after state tax profit = $1,015,000 x (1 - state tax rate) = $1,015,000 x 0.90 = $913,500

b. What is the after state taxes profit in the state with the 2% tax rate?

after state tax profit = $960,000 x (1 - state tax rate) = $960,000 x 0.98 = $940,800

Unlike federal corporate taxes which apply to all US corporations regardless of where they operate, state corporate taxes vary a lot depending on the state. Some states do not collect any tax at all (6 states) while others charge taxes that vary from 2.5% to 12%.

5 0

3 years ago

The long-term liability section of Rainbow Digital Corporation’s balance sheet as of December 31, 2020, included 10% bonds havin

Anon25 [30]

Answer:

Loss on early extinguishment = 1,008,357.64

Explanation:

Data:

T = Interest rate = 10% = 0.10

FA = Face amount = $1,000,000

RD = Remaining Discount = $139,294

Y = Yield rate = 12% = 0.12

RT = Retirement Time = 6/12 = 0.5

BA = Bonds at = 101% = 1.01

EE = Gain (loss) on early extinguishment = ?

IE = Interest Expense = ?

D = Discount on bond payable = ?

Calculations:

IE = Y * (FA - RD) * RT

IE = 0.12 * ($1,000,000 - $139,294) * 0.5 = 0.12 * $860,706 * 0.5 = $51,642.36

D = FA - [IE - (T * FA * RT)]

D = $1,000,000 - [$51,642.36 - (0.10 * $1,000,000 * 0.5)] = $1,000,000 - [$51,642.36 - $50,000] = $1,000,000 - $1,642.36 = $998,357.64

EE = FA - [D + (FA * BA)]

EE = $1,000,000 - [$998,357.64 + ($1,000,000 * 1.01)] = $1,000,000 - [$998,357.64 + $1,010,000] = $1,000,000 - 2,008,357.64 = -1,008,357.64

EE = -1,008,357.64 (Loss)

4 0

3 years ago

Following a peso appreciation relative to the dollar, which of the following results is expected to occur?

liubo4ka [24]

Answer:

B

Explanation:

A currency appreciates when its value increases.

For example if $1 was exchanged for 50 pesos. After appreciation of the pesos, $1 would buy $25 pesos.

So more $2 would be needed to buy 50 peso after the appreciation when before the appreciation $1 was buying 50 pesos.

As a result Mexican goods would become more expensive to US consumers and the revenue earned by Mexican producers would increase

7 0

3 years ago

Weekly demand for tennis balls at The Racquet Club is normally distributed , with a mean of 35 cases and a standard deviation of

RideAnS [48]

Answer:

a-The average weekly profit is $1767.31

b- The probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.

Explanation:

a

The weekly average profit for the simulation is given where first the values are simulated using R which is given as below:

x<-round(rnorm(n,m,s))

Here

round converts all the values of the simlation to integer.
rnorm is the command for simulation
n is the number of values which is 52 in this case
m is the mean of the values which is 35
s is the value of standard deviation which is 5 cases.

The values of x are as follows

[1] 36 49 30 29 34 36 32 28 32 29 32 27 40 32 30 37 43 30 42 30 31 34 36 38 28 29 32 42 36 35

[31] 37 41 34 39 37 46 34 44 45 41 41 29 36 38 35 32 36 39 30 38 40 27

Now using these values, the average of the simulation values is cacluated as follows:

mean(x)

35.3462

Now using this with the value of profit of $50 gives:

Average Profit=$50 x 35.3462

Average Profit=$1767.31

The average weekly profit is $1767.31

b-

First number of cases are required so that the value will be greater than 2000 it is given as

Number of cases=2000/50=40

So firstly the Z-score is calculated which is as below:

$Z=\dfrac{x-\mu}{\sigma}\\Z=\dfrac{40-35}{5}\\Z=1$

Now the probability is given as

$P(X\geq 40)=P(Z\geq 1)\\P(X\geq 40)=1-P(Z< 1)$

The value of P(Z<1) is calculated from the table which is given as

0.84134

So the equation becomes

$P(X\geq 40)=1-P(Z< 1)\\P(X\geq 40)=1-0.8413\\P(X\geq 40)=0.1587$

So the probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.

4 0

3 years ago

Minneapolis, MN has a CPI of 173. Anchorage, AK has a CPI of 226. How does the purchasing power of someone in Minneapolis earnin

nikdorinn [45]

Answer:

The answer is: C) The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.

Explanation:

The Consumer Price Index (CPI) weighs the average prices of a basket of consumer goods and services. So the higher the CPI, the more expensive it is to purchase goods or services in that place.

The purchasing power of someone living in Minneapolis and earning $42,500 is $245.66/CPI; for someone living in Anchorage and earning $67,000 is $296.46/CPI. The difference between them is $296.46/CPI minus $245.66/CPI equals $50.80/CPI.

The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.

6 0

3 years ago