Answer:
Gringotts Bank real interest rate = 20% - 25% = -5%
Explanation:
real interest rate = nominal interest rate - inflation rate
the inflation rate between year 1 and year 2 = [(CPI year 2 - CPI year 1) / CPI year 1] x 100 = [(150 - 120) / 120] x 100 = (30 / 120) x 100 = 0.25 x 100 = 25%
Gringotts Bank real interest rate = 20% - 25% = -5%
since the interest rate is negative, that means that Gringott Bank is actually losing money by lending it at 20% since the inflation rate is much higher.
Answer: means test benefit
Explanation:
A means test is used to determines whether an individual or a household will be eligible to get some payments or benefits.
An example is the one illustrated in the question whereby President Waldhart proposes that anyone making over $150,000 would receive no benefits.
Answer:
1) $18,000
2) $0
Explanation:
1) The wage based limits in business applies only to taxpayers with taxable income in excess of $157,500 or excess of $315,000, if it is a joint return.
Now, in this case, Roquan's taxable income which is $100,000 is less than the wage limits of $157,500 earlier stated. This implies that it doesn't qualify for wage-based limits.
Therefore, from business practices, Roquan will likely deduct 20% of the net $90,000 which is $18,000 to serve as deduction for qualified business income.
2) We are told that Roquan's taxable income before the deduction for qualified business income is now $300,000. What this implies is that his law practice would be judged to be a trade business and he would therefore not be eligible for deduction of the qualified business income.
Thus, it's $0.
Answer:
The answer is: B) $175
Explanation:
Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).
Caroline´s taxes = $500 x 35% = $175
In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.
