Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
As per §117(b)(2) a qualified scholarship that is solely used for qualified tuition and related expenses like fees, books and supplies that is necessary for such course in which admission is taken, related tuition fees and associated expenses are not taxable.
On the other side expenses on rooms and boarding are not qualified expenses so any amount spent on it is fully taxable. Another condition is that scholarship given should not be an exchange of service.
<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly. </em>
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Answer:
c. marginal rate of substitution is equal to the relative price ratio of the goods.
Explanation:
we know that the costomer MRS = Px/Py , where x and y are the two goods.
MRS(x,y) = MUx/MUy = Px/Py
Therefore, The marginal rate of substitution is equal to the relative price ratio of the goods.
Answer:
are records of increases and decreases in individual financial statement items
Explanation:
The accounts are the day to day records that the individual, company and the business organization handles. It can be classified into various accounts like - cash accounts, purchase accounts, sales accounts, etc
The cash account is the account which records the payment and receipt of the cash
And, the purchase and sales accounts tracks the purchase of the fixed asset, inventory, and sales of the fixed asset, inventory, etc
There is an end number of transactions that can be either increase or decrease
Answer:
answer 1. 9.24%
answer 2. 13.24%
Answer 3. 22.48%
Answer 4. $1,134.20
Explanation:
answer 1
Coupon amount = Face value * coupon rate
=1000*9%
=$90
current price of bond=$974
Current yield = Coupon amount/current price of bond
=90/974
=0.09240246407 or 9.24%
answer 2.
sale price after one year = 1103
purchase price or opening price = 974
Capital gains yield = (Sale price - Purchase price)/Purchase price
=(1103-974)/974
=0.1324435318 or 13.24%
Answer 3
One year coupon received = $90
Expected return of bond = Current yield + Capital gains yield
=0.09240246407+0.1324435318
=0.2248459959 or 22.48%
Another formula:
Expected return on bond = (Coupon received + sale price - purchase price)/Purchase price
(90+1103-974)/974
=0.2248459959
or 22.48%
Answer 4
Calculator inputs
I/Y (discount rate)= 8%
N (number of periods ) = 10
PMT (coupon amount) = 1000*10% =100
FV (face value) = 1000
press CPT and then -PV
Answer will be $1,134.20
