Answer: If it has a secular legal purpose, has a primary effect of neither advancing nor inhibiting religion, and does not foster an excessive government entanglement with religion
Explanation:
The Establishment clause prevent the Congress from having a state religion or honig preference to one religion above another one.
The circumstances that a state law would be permissible under the establishment clause include if it has a secular legal purpose, has a primary effect of neither advancing nor inhibiting religion, and does not foster an excessive government entanglement with religion.
Answer:
- <u><em>1. CPI in the subsequent year: 1,135</em></u>
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- <u><em>2. Rate of inflation: 13.5%</em></u>
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Explanation:
<u>1. Calculate the CPI</u>
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<em>CPI </em>is the consumer price index.
CPI is created using a basket of goods and services that are typically consumed.
In the given case the typical basket is:
- Gasoline and car maintenance
- Phone service (basic service plus 10 long-distance calls).
Then to find the CPI for a determined year you multiply each item by its price and then add up all the results.
For the base year, the expenditures per month were:
- 25 pizzas at $ 10: $10 × 25 = $250
- Gasoline and car maintenance: $100
- Phone service (basic service plus 10 long-distance calls): $50
Then, the CPI for the base year is:
- CPI = $250 + $600 + $100 + $50 = $1,000
The year following the base year, the expenditures per month are:
- 25 pizzas at $ 11 : $11 × 25 = $275
- Gasoline and car maintenance: $120
- Phone service (basic service plus 10 long-distance calls): $40
Then the CPI for the followng year is:
- CPI = $275 + $700 + $120 + $40 = $1,135
<u>2. Calculate the rate of inflation</u>
The rate of<em> inflation</em> is defined as the increase of the CPI of the given year with respect ot the base year:
The formula to calculate the rate of inflation is:
- Inflation = (CPI of the year - CPI of the base year) / (CPF of the base year) × 100
- Inflation = [ (1,135 - 1,000) / (1,000)] × 100 = 13.5%
Hence, <em>the rate of inflation for the subsequent year is 13.5%</em>
Answer:
c. goodwill is not amortized
Explanation:
The answer to this question is simply option c. Goodwill is not amortized
The reason for this is that the goodwill is accrued as a result of an entity paying more for an asset they acquired than what is supposed to be their fair value, putting its brand value into consideration. The Amortization of Goodwill is not something that is permitted . In order for a better accounting, the valuation of goodwill of entity should be done yearly so as to determine an impairment whenever it is required.
Answer:
Explanation:
the file attached shows the solution to the three questions asked i hope it helps. thank you
Answer:
Annual cost = −64,083
Explanation:
Present maintenance costs = $180000
Maintenance costs after three years = $70000
Real interest rate = 9%
Inflation rate = 3%
Inflation adjusted interest rate, r = 0.09 + 0.03 + (0.09)(0.03) = 12.27% per year
Annual cost = −180,000(A/P,12.27%,5) –70,000(P/F,12.27%,3)(A/P,12.27%,5)
Annual cost = −180,000(0.27927)–70,000(0.70666)(0.27927)
Annual cost = −64,083