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3 years ago

The distinction between a normal and an inferior good is

Business

1 answer:

Romashka-Z-Leto [24]3 years ago

5 0

Answer:

The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.

Explanation:

The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.

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During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year

Sauron [17]

Answer:

Supplies Expense 1625 Dr

Supplies Account 1625 Cr

Explanation:

First, we need to determine the supplies expense for the period. The supplies expense can be calculated by deducting the year end supplies balance from the supplies account balance.

The supplies expense = 2600 - 975 = $1625

The adjusting entry that will be made at the end of the period is,

Supplies Expense 1625 Dr

Supplies Account 1625 Cr

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3 years ago

To get to free cash flows from accounting earnings, what is the formula used?

kotegsom [21]

The formula used to determine free cash flow is cash from operations minus capital expenditures.

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3 years ago

Mr. Bailey would like to gift $515,000 (FMV) of appreciated property (basis $200,000) to his son. Mr. Bailey doesn't want to use

Oliga [24]

Answer:

He should set a grantor retained annuity trust (GRAT).

Explanation:

Mr. Bailey would be the grantor that transfers the asset into the GRAT, but retains the right to receive annuity payments for a number of years. The IRS has set a minimum annuity corresponding to the Section 7520 rate, during the last two years the rate has varied from 2-3%. When the trust expires (pays all the annuities), the beneficiary gets the asset tax free.

Since the grantor is giving up an asset but in exchange is receiving an annuity form it, there is no applicable gift tax, it is called a zeroed-out GRAT.

This type of grant makes sense only if the grantor believes that the future value of the asset will be higher than the current value, since the annuity is based on the current value. In this case, Mr. Bailey would receive payments based on a $200,000 value, but the property's fair market value is already higher and should increase as time passes.

7 0

3 years ago

Steve's Cider Shack, Inc. just paid a dividend of $8 per share of common stock. The dollar amount of the dividends is expected t

mamaluj [8]

Answer:

Check the following calculation

Explanation:

Current price : D0(1+g)/(Rs-g)

8 (1+.02)/(.13-.02)

8* 1.02 / .11

= $ 74.18 per share

2) Dividend: 8(1+.02) = 8.16

Annual rate of return : [P1- P0+D ]/P0

[74.18 - 63 + 8.16 ]/63

19.34/63

.3070 or 30.70%

8 0

3 years ago

org303 According to the textbook, the most important reason for organizations to rely on research is that it ultimately

Leviafan [203]

Answer:

Explanation:

The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.

7 0

3 years ago