Economic profits. An entrepreneur is more interested in economic profits
Answer:
Explanation:
Marc's salary 72,400
Michelle's salary 15,150
Corporate bond interest 1,550
Add everything and we will get gross income = 89,100
Answer:
Debit supplies expense $2,200
Credit office supplies $2,200
Explanation:
The beginning balance of $1,600 plus the purchases of $1,800 makes an available office supplies balance for the period in the amount of $3,400. A year-end physical count of $1,200 constitutes the remaining supplies balance at the period after they used up the $2,200 portion ($3,400 - $1,200). The appropriate journal entry at the year end is to recognize the expense portion of the supplies. Therefore, we have to debit supplies expense and credit office supplies in the amount of $2,200.
Answer:
the amount of the annual interest tax shield = $7437.5
Explanation:
First we need to ckeck the vaelus given on the problem.
$340,000 bond issue outstanding
rate of 6.25%
sell at 101.2% of face value
tax rate is 35 percent
pay interest semiannually
so the amount of the annual interest tax shield will be given by:
Coupon amount paid in a year = $340000 x 6.25 / 100 = $21250
amount of the annual interest tax shield = $21250 x 35 / 100 = $7437.5
therefore we have that the amount of the annual interest tax shield is $7437.5