Answer:
When making a major purchase, first determine your <u>net
</u> income by subtracting the deductions from your gross pay.
Explanation:
In business and accounting, net income is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.
Answer:
$208,000
Explanation:
Calculation for fixed overhead applied
Using this formula
Fixed overhead applied =Budgeted Fixed overhead+Fixed overhead volume variance
Let plug in the formula
Fixed overhead applied =$200,000+$8,000
Fixed overhead applied=$208,000
Therefore Fixed overhead applied must be $208,000
Answer:
prices to fall according to the classical economists and unemployment to increase according to Keynes.
Explanation:
The classical economists believes that a decrease in aggregate demand for goods produced would being about fall in the prices of such goods. What this implies is that as more goods are produced, if such production is not backed by corresponding demand by consumers, the prices of such goods produced will eventually fall because supply is greater than demand.
For the Keynes, their argument is that a decrease in aggregate demand will cause unemployment to increase. This is because owners of businesses or employers would lay off their employees when goods produced exceeds the demand for such production by consumers. Here, owners of businesses pays their employees through sales of goods produced. So, when the goods produced are not purchased, then there will be excess availability of such goods; hence no sale or profit, from which salaries would be paid. The next step is to start laying off employees because employers cannot cover their running costs.
Answer:
His taxable income for 2019 is $4,740
Explanation:
In order to calculate his taxable income for 2019 first we have to calculate the following:
First we have calculate the sum of the total income (earned and unearned)=$5,090+ $890=$5,980
Taxable income for 2019=total income-Higher of the following two:a. $1,000 or b. $890+$350
Therefore, Taxable income for 2019=$5,980-$1,240
=$4,740
His taxable income for 2019 is $4,740
Answer:
Cost of equity = 14.43%
Explanation:
Weigheted Average cost of capital is computed using the formula below:
WACC = (Wd×Kd) + (We×Ke)
Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%
Wd =Proportion of debt= 40%
We = proportion of equity = 60%
Ke= cost of equity.
let the cost of equity be "y"
WACC = 11.54
11.54 = (40%× 7.2%) + (60% × y)
0.1154 = 0.0288 + 0.6y
0.1154 - 0.0288 = 0.6y
y =(0.1154 - 0.0288)/0.6
y = 0.1443 × 100
y =14.43%
Cost of equity = 14.43%
