Answer:
D) $7,200 current-year deduction; $300 carryover
Explanation:
Remsco's total modified taxable income for the year = $60,000 (net income) + $12,000 (dividends received deductions) = $72,000
Corporations can deduct charitable contributions up to 10% of their total modified taxable income for the year:
$72,000 x 10% = $7,200
since the contributions made during this year exceeded the limit by $300, that will be the amount of the carryover for future years.
* Modified taxable income is the taxable income determined without regard to any base erosion tax benefit, i.e. total taxable income including any deductions made like DRD
Answer: A. the summed value of each possible rate of return weighted by its probability
Explanation:
The Expected Return of a project is indeed the summed value of each possible rate of return weighted by its probability.
When going into a project, a financial analyst has to account for the possible outcomes that could happen such as interest rates rising or falling.
They then take the various likelihoods and assign rates of returns to them that are either known or anticipated. They will then give each likelihood a probability of it occuring and then give a Weighted Average of these probabilities along with the rates of returns for those likelihoods.
The summed figured that they get is what is known as the Expected return and it includes the various likelihoods that could happen to the project.
Answer:
A. <u>Market Order</u>
Explanation:
In a market order, the securities are bought and sold immediately at the current market price prevailing at that time of the day.
Under this, order size is entered such as quantity of stock, the action to be taken i.e buy or sell and no buying/selling rate is mentioned, rather "market" option is checked.
Such market price keeps fluctuating every every moment so the order would be completed at that price which prevailed at that exact moment.
In the given case, the broker upon instructions of the client immediately got the order executed of 500 shares in less than a minute. This is the case of market order wherein the order was executed at current market price.
Diversification is important in investing because "It helps you to balance your risk across different types of investments".
Explanation:
Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.