Answer:
6.83%
Explanation:
The computation of the accounting rate of return is shown below:
As we know that
Average accounting rate of return = Average annual operating income ÷ Initial Investment
where,
Average annual operating income is
Year 1 net cash inflow $320,000
Year 2 net cash inflow $280,000
Years 3-10 ($230,000 × 8) $1,840,000
Total net cash flows $2,440,000
Less: Total depreciation ($1,450,000)
$990,000
Divided it by years of life ÷ 10 years
Average annual operating income $99,000
So,
Average accounting rate of return is
= $99,000 ÷ $1,450,000
= 6.83%
COMMUNIST
Under the Communist System the number of choices in the market is directly related to government involvement in markets.
Communist system is a market system wherein all market decisions are made by the government.
Answer:
E. All the statements are correct
Explanation:
i. Corporations rarely pay tax on the interest income.
This statement is correct. Some companies do not even pay any income taxes.
ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.
Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.
iii. Short term capital gain and long-term capital gain are treated differently for individuals.
Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.
Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.
iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.
This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.
<span>Why is organizational culture so difficult to change? Because it is difficult to change a group's shared values, attitudes, and beliefs. Organizational culture is defined as the values and behaviors that make an organization a unique environment. It is hard to change the way an organization works because you can't just change values and beliefs that someone beliefs in. </span>
