Answer:
True
Explanation:
According to the IRS, nonbusiness bad debts are debts that don't fall into any of these three categories:
- Loans to clients, suppliers, distributors, and employees
- Credit sales to customers, or
- Business loan guarantees
In order for a nonbusiness bad debt to be deductible, it has to be worthless. Nonbusiness bad debts cannot be deducted partially unlike business bad debts. They are deducted as short-term capital losses.
In this case if the taxpayer was able to collect his nonbusiness bad debt then there is nothing to be deducted. The taxpayer must include both the $8,000 (short-term capital gain) and the $35,000 (taxable income) in his gross income.
Answer:
Explanation:
First of all, as the interest is paid semi-annually, we calculate semi-annual interest rate by dividing yield to maturity by the number of periods in a year (2).
Semi-annual interest rate = 0.0818 / 2 = 0.0409
Now using the following formula
where,
YTM = 0.0409 (semi-annually)
Face Value = $1000
Current Price = $823.5
n = Number of semi-annual periods
Taking natural log on both sides,
Hence, semi-annual periods are 4.837. Therefore, the bond will mature in approximately (4.837/2) 2.4185 years.
It’s not but that would be weird considering a lot of people on here are minors
Answer: and Explanation:
The computation of the markup percentage using the following cost is shown below:
a. Total cost
= Desired profit ÷ total cost
= $28 ÷ $89
= 31.46%
b. Under product cost
= Desired profit ÷ (total cost - seling & admin cost)
= ($28) ÷ ($89 - $14)
= 37.33%
c. Under variable cost
= Desired profit ÷ variable cost
= $28 ÷ $58
= 48.28%
By applying the above formulas we can easily calculate them