Answer: $40,000
Explanation:
As this is a manufacturing company, they are exempt of Accumulated earnings tax of the amount of $250,000. Anything above that will be subject to an Accumulated Earnings tax rate of 20%.
Accumulated Earnings tax = 20% * (450,000 - 250,000)
Accumulated Earnings tax = 20% * 200,000
Accumulated Earnings tax = $40,000
Answer:
c. evaluate a company's ethical culture
Explanation:
Ethics auditing is used to systematically evaluate an organization's effectiveness when it comes to performance ethics and programs. This will determine both the internal and external impacts of ethical performance. It also helps in identifying the problems and risks in outgoing activities. This way the company can take necessary measures to correct, adjust or eliminate any ethical concerns that may arise.
Suppose the federal reserve (The Fed ) announces that it is lowering its target interest rate by 75
basis points or 0.75% . It would achieve this by shifting the supply curve of the money to the...
Answer:
D.
Explanation:
Agency relationship implies that one person referred as principal allows another person agent to take decision or act on former's behalf.
In an agency relationship, the principal delegates decision-making authority to the agent.
Answer:
Price of bond= $1,185.72
Explanation:
<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.
</em>
These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
annual coupon rate = 7.1%
Annual Interest payment =( 7.1%×$1000)= $71
Annual yield = = 5.5%
PV of interest payment
= A ×(1- (1+r)^(-n))/r
A- interest payment, r- yield - 5.5%, n- no of periods -19 periods
= 71× (1-(1.055)^(-19))/0.055)
= 71× 11.60765352
= 824.143
Step 2
PV of redemption value (RV)
PV = RV × (1+r)^(-n)
RV - redemption value- $1000, n- 19, r- 5.5%
= 1,000 × (1+0.055)^(-19)
= 361.579
Step 3
Price of bond = PV of interest payment + PV of RV
$824.143 + $361.579
Price of bond= $1,185.72
