Answer:
A) $ 1,440 deduction
B) $1,056 deduction
C) not allowed
Explanation:
IMPORTANT:
As 2020 student loan became interest-free according to Trump administration and extended by Joe Biden up to September 2021
<u>We are going to work the numbers with 2019 values.</u> Which is the closest year one could claim this deduction.
Below AGI of 70,000 we can have a full deduction.
so A) will be a $ 1,440 deduction
Between 70,000 and 85,000 we have a partial deduction.
so we do:
This is the fraction we are disallowed to deduct.
We take our interest expense and multiply by 1 less this amount:
And that is the deduction we can make.
C) as the tax benefit phase-out above $85,000 AGI if Lionel's AGI is $90,000 there is no possible tax deduction
Answer:
a. Decline
Explanation:
Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.
Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.
Therefore, the correct answer, in this case, is Option A: DECLINE
Note LM means Liquidity and Money
While IS means Investment and Savings.
Answer:
7.53%
Explanation:
the yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
- coupon = $1,000 x 9.1% x 1/2 (semiannual) = $45.50
- face value = $1,000
- market value = $1,000 x 115% = $1,150
- n = (7 years - 2 years) x 2 semiannual periods = 30
YTM = {$45.50 + [($1,000 - $1,150)/30]} / [($1,000 + $1,150)/2] = $40.50 / $1,075 = 3.7674% x 2 = 7.5349% ≈ 7.53%
Answer:
True or false: All communication regarding matters affecting the functioning of internal control within an organization should be internal. False.