Answer:
True
Explanation:
Efficiency related expenditures are more closely with day-to-day servicing of the machine. Such an expenditure just maintains machine's capacity to save the future economic benefits rather than improve its capacity.
Answer:
Capital gain tax = $1,540.
Explanation:
As per the data given in the question,
For stocks of A
Profit = (selling price - purchasing price) × units
= ($19 - $23) × 200
= -$800
For stocks of B
Profit = ($57-$41) × 600
= $9,600
Total profit = profit for stock A + profit for stock B
= -$800 + $9,600
= $8,800
Therefore, capital gain for both year = $8,800
Tax rate = 35%
Capital gain tax = Capital gain × Tax rate
= $8,800 × 35%
=$3,080
As share holds for more than a year,
So, Capital gain tax = $3,080 ÷ 2 = $1,540.
D.) A cooperative lending institution for a particular group.
Typically, you must be a member to participate in a credit union.
Answer: an organizational relationship that links two separate businesses
Explanation: In simple words, strategic alliance refers to the business arrangement in which two parties combine their activities for attaining mutual objective but still operating as two separate and independent legal entities.
These business arrangement usually lack legal, agency or cooperate affiliated relationship. Generally such business arrangements are made by the organisation to make their processes more effective and helps the organisations in reducing their costs and risk.
Answer:
a) $393.65
b) $458.11
c) $217.63
Explanation:
Given data:
16-year ( n )
$1000 par value ( FV )
6% ( R )
A) determine the initial price of the bond
= FV / ( 1 + R ) ^ n
= 1000 / ( 1.06 ) ^ 16
= 1000 / 2.5403 = $393.65
B ) when interest rate drops to 5% determine the value of the zero-coupon rate of bond
= FV / ( 1 + R ) ^n
= 1000 / ( 1.05 ) ^ 16
= 1000 / 2.1829 = $458.11
C ) when interest rate increases to 10% determine the value of the zero-coupon rate of bond
= Fv / ( 1 + R ) ^ n
= 1000 / ( 1.1 ) ^ 16
= 1000 / 4.5950 = $217.63