If an employer chooses a per diem method of substantiation for travel expenses, the meals and incidental expenses method requires actual cost records to substantiate lodging expenses.
Option E
<u>Explanation:
</u>
The price of the meal and the additional expenses while travelling away from home for work purposes is deducted from an employee or self-employed person. The expense deduction generally requires the costs to be substantiated.
There has been, however, an optional form that prohibits receipts for these taxpayers.
The IRS releases Diem levels for different parts of the United States (see Notification 2015-63 on the subject of irs.gov). For just the intent of measuring a meal and an accessory deduction, taxpayers may use such per diem rates and will be required to prove it.
If an employer wants a method of proof of travel expenses by Diem, the meal and by-product procedure requires real cost records in order to prove accommodation expenses.
Answer:
The correct answer is: $1715,87
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= ∑ [Rt/(1+i)^t] - I0</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
<u>In this exercise:</u>
NPV= 0+ 250/1,10^1 + 400/1,10^2 + 500/1,10^3 + 600/1,10^4 + 600/1,10^5
<u>NPV= $1715,87</u>
Answer:
Gross investment will be equal to $175 billion
Explanation:
We have given nation's capital stock at the start = $200 billion
And capital stock at the end = $350 billion
Consumption of private fixed capital in the year = $25 billion
We have to find the gross investment
Gross investment is equal to
Gross investment = Capital stock at the end of the year + consumption of private fixed capital - Capital stock at the starting of the year
= $350+$25-$200 = $175
So gross investment will be equal to $175 billion
