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Anna11 [10]
3 years ago
14

This problem has been solved!See the answerIn the current year, Tern, Inc., a calendar year C corporation, has $9 million of adj

usted taxable income, $300,000 of business interest income, zero floor plan financing interest, and $3.2 million of business interest expense. Tern has average gross receipts for the prior three-year period of $45 million. Which of the following statements is correct about the treatment of Tern's business interest expense?Group of answer choicesa. Current year deduction of $3 million, carryback of $200,000.b. Current year deduction of $2,790,000, carryback of $410,000.c. Current year deduction of $3 million, carryforward of $200,000.d. Current year deduction of $3.2 million.e. Current year deduction of $2,790,000, carryforward of $410,000.
Business
1 answer:
Stells [14]3 years ago
8 0

Answer:

Explanation:

SOLUTION

Current year deduction of $3 million, carry forward of $200,000.

Reason:-

Business interest deduction limitation

Business Interest Income = $300000

+ 30% *$9m ie $2.7m

Total current year deduction = $3m

Remaining $200,000 will be allowed next year.

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To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales.
marusya05 [52]

Answer:

RELATIVELY INELASTIC

more elastic

less

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase

If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall

In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run

If the long run, price is increased, the total quantity demanded would fall and revenue would fall

5 0
2 years ago
​psychologists usually attempt to determine whether or not data supports a hypothesis through the use of ____.
guajiro [1.7K]
Psychologists usually attempt to determine whether or not data supports a hypothesis through the use of statistics which means gathering/collecting all data facts and important information.
6 0
3 years ago
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation Account Title Cash Account
Art [367]

Answer and Explanation:

The preparation of the classified balance sheet is presented below:

<u>Valley Pump Corporation</u>

<u>Balance sheet</u>

<u>December 31, 2018</u>

Assets

Current assets

Cash                                    $30,000              

Marketable securities           $27,000

Account receivable             $61,000

Inventory                               $91,000

Prepaid expense                   $37,000

Investments

Marketable securities  $27,000

Land                               $25,000   $52,000

Property, plant & equipment

Land                           $105,000

Buildings                    $325,000

Equipment                  $85,000

Less:

Accumulated depreciation -$135,000

Net property, plant & equipment     $380,000

Intangibles

Copyright                                          $17,000

Total assets                                      $695,000

Liabilities & shareholder equity

Current liabilities

Account payable                        $70,000

Interest payable                          $15,000

Unearned revenue                     $25,000

Note payable                              $110,000

Current maturities                      $55,000

Total current liabilities                $275,000

Long term liabilities

Note payable                               $110,000

Shareholder equity

Common stock           $250,000

Retained earnings      $60,000

Total shareholder equity               $310,000

Total liabilities & shareholder equity $695,000

Working notes

Accumulated depreciation = building + equipment

= $105,000 + $60,000

= $695,000

The note payable is

= $55,000 × 2

= $110,000

6 0
2 years ago
Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio
Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025]  +  1000 / (1+0.025)^8

Bond Price = $1000

5 0
3 years ago
Suppose that in 1969, the U.S. economy was operating close to potential. The budget deficit experienced by the United States in
Nataly [62]

Answer: primarily cyclical deficit

Explanation:

Budget deficit occurs when the government expenditure for a certain year is more than the revenue the government makes.

Since the the United States economy was operating close to potential. The budget deficit experienced by the United States in 1969 was primarily cyclical deficit.

3 0
3 years ago
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