Answer:
C. $19,500 if this amount is not material, Big Homes expects to continue the practice of offering rebates in future years, and Big Homes expects to pay the accrued rebates before filing their tax return for this year.
Explanation:
They are viewed in the tax law as a reduction to the purchase price of the item. Thus, this decreases the income from the houses.
Is important to consider that this must be part of the commercial activity from Big Homes and in subsequent years this rebates will continue to occur.
Thus, if Big Homes Corporation pay the accrued rebate it confirms the discoutn and thus, the deduction.
Answer:
The answer is: Strategic alliance
Explanation:
Strategic alliance refers to an agreement between two or more companies that will work together to pursue common goals or objectives. Each company will remain independent and their collaboration is solely to achieve a specific common objective. In this case, Alpha and Microchips will continue to work independently and will work together as one only in China.
Answer:
Explanation:
When interest is compounded annually, we can use the following formula to calculate the amount in the account at the end of a given time period.:
Where:
Let's solve the previous equation for t:
Divide both sides by PV:
Take the natural logarithm of both sides:
Replace the data provided by the problem:
Answer:
Final Value= $7,144.13
Explanation:
Giving the following information:
Suppose you decided to place $2,500 in a savings account at First Foremost Savings and Loan. The account pays 7% compounded continuously.
Number of years= 15
<u>Because it is compound continuously, we need to use the mathematical constant e.</u>
To calculate the final value, we need to use the following formula:
FV= PV*[e^(i*n)]
FV= 2,500*[e^(0.07*15)]
FV= 2,500*(e^1.05)
FV= $7,144.13
