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3 years ago

In regards to Social Security benefits:

1 answer:

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Answer: c. Tax-free interest income must be included in the formula used to determine if Social Security is included in taxable income.

Explanation:

The portion of Social Security benefits that is taxed depends on how much Income the person has.

For instance, a person is charged up to 50 percent if their income is $25,000 to $34,000 for an individual.

So now how do we calculate the 'income' on which the taxation is based.

The IRS, for the purposes of determining how much you pay, treats income as a person's adjusted gross income plus NONTAXABLE INTEREST INCOME plus half of their Social Security benefits.

From the above we can see that option C is therfore correct.

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Suppose that you are evaluating a project in the food division. What is the appropriate discount rate for this project? Assume t

posledela

Answer:

Find below complete question:

There are three equally large divisions in a conglomerate: (i) food division, (ii) travel division, and (iii) construction division. Their divisional betas are 0.5, 1.8, and 2.2, respectively.

What is the overall beta for the entire firm?

A.0.5

B.1.8

C.1.5

D.2.2

Correct option is C,1.5

Suppose that you are evaluating a project in the food division. What is the appropriate discount rate for this project? Assume that the CAPM holds. The risk-free rate is 1% and the expected return on the market is 7%.

A.10%

B.11.8%

C.4%

D.14.2%

Correct option is A,10%

Explanation:

The starting point is to determine the overall beta for the company.

Since all the three divisions are equally large,it means they share the same probability weighting of 0.3333(1/3)

food division 0.3333 *0.5

Travel division 0.3333*1.8

construction 0.3333*2.2

overall beta 1.49985

1.5 approx

Ke=Rf+beta(Rm-Rf)

Rf is the risk free rate of 1%

Rm is the expected return on market of 7%

beta is 1.5

Ke=1%+1.5*(7%-1%)

Ke=10%

8 0

3 years ago

Susan Pinsky's checking account had a balance of $137.66. She wrote a check for $23.62 on September 3. On September 7, the bank

musickatia [10]

Answer:

$234.87

Explanation:

Pinky's new balance will be the opening balance plus additional. Deposits minus withdrawals. The new balance will be the starting balance plus cash-in minus the cash-out.

Starting balance =$137.66

Cash-in: $146.24

Cash-out : check $23.62 + (AT) of $25.41 =$49.03

New balance = $137.66 + $146.24 - $49.03

=$283.9- 49.03

=$234.8

3 0

3 years ago

On June 30, 2009, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a

My name is Ann [436]

Answer:

c. A debit to a prepaid expense for $7,500.

Explanation:

Because the pament for management services are in-advance, is a right for Apricot, as now has the right to receive this management services for two-years

The entry will do the following:

it will recognize the prepaid expense

prepaid management services

and will post the cashoutflow for the amount paid.

prepaid management services 7,500 debit

cash 7,500 credit

From the option we are given:

a.- FALSE there is no expense in the entry

b.- FALSE there is no expense in the entry

d.- FALSE the prepaid expense is debited, not credited

e.- FALSE. cash is credit, not debit.

c.- CORRECT there is a prepaid expense, which is being debited.

3 0

3 years ago

What is the purpose of a report?

amm1812

<span>Reports communicate information which has been compiled as a result of research and analysis of data and of issues. So I think that variant B will be correct. What will be also useful for you is to be aware of the site where your report or a research paper may be written from the scratch or proofread. Check, please, Marvelous essay service. I am sure you can easily get the help there. </span>

3 0

3 years ago

Read 2 more answers

Novak Company had the following two transactions related to its delivery truck. 1. Paid $150 for an oil change. 2. Paid $700 to

Lorico [155]

Answer and Explanation:

The Journal entries are shown below:-

1. Maintenance and Repairs Expense Dr, $150

To Cash $150

(Being cash paid is recorded)

For recording this we debited the maintenance and Repairs Expense as there is increased in expenses and credited the cash as assets are decreased

2) Equipment $700

To Cash $700

(Being cash paid is recorded)

For recording this we debited the equipment as it increased the assets and credited the cash as assets are decreased

6 0

4 years ago