Answer:
1 is the base index of CPI, so a value of 0.418 means that the prices were 0.418 times the base index and 2.4 means that prices were 2.4 times the index
The 1972 graduate's job paid $7200 in nominal terms and (7200/0.418) in real terms
Real terms 1972= 17224
Real terms 2016= 25000
17224/25000= 68%
The 1972 graduate's job paid 68 percent of the 2016 graduates job in real terms.
Explanation:
The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.
Answer: A <u>CIRCULAR STRUCTURE</u> structure is an organizational structure in which executives are at the center, spreading their vision outward in rings grouped by function (managers, then specialists, then workers).
Explanation: Circular structures have a circular organization chart that is a type of business organization chart that is identified by its spherical shape. It is an organizational chart that represents customer services and does not determine the chain of command like other organizational charts. It contains a central circle, where the figure that has the highest authority in the company is located and has the necessary number of concentric circles around it, according to the people who represent the organization.
Answer:
Complete the following statements: <u>THEORETICAL CAPACITY</u> would result in the largest production volume variance; <u>NONE OF THE CAPACITY CHOICES</u> would result in a favorable production volume variance.
a. theoretical capacity; none of the capacity choices
Explanation:
production volume variance = (actual unit quantity manufactured - budgeted unit quantity manufactured) x budgeted cost per unit
(actual production - theoretical capacity) x budgeted cost per unit = (250,000 - 275,000) x budgeted cost = 25,000 x budgeted cost
None of the capacity choices would result in a favorable variance because actual production was lower than all of them.
actual production 250,000 < theoretical 275,000
actual production 250,000 < practical 265,000
actual production 250,000 < normal 260,000
Solution :
a). In the context, Jim received $ 275 for the car repairing services form some member from the club. In this exchange of the services, an income is been received in amount of a value of the services received ( the gross income includes receipt of the services and also the money and goods). Therefore, Jim is being taxed on an amount of $275 for the car repair services.
b). The issue in this case is whether a "credit" represents the valuable right. As the right can be redeemed for the that is property worth of $150, then under the constructive receipt, Jim must recognize an income of $150.
c). Jim received an credit of $450 to be applied for the next year. If the credit can be redeemed or used for any future services, the taxpayer then can argue that the realization has not yet occurred. But, it has be included in Jim's gross income for the next year when his credit amount becomes the valuable right.
