All categories

3 years ago

What is the key to all conditional clauses?

1 answer:

3 0

<span>The key to all conditional clauses is that if a condition in a contract does not occur, public policy will require only substantial performance by the party for whom the condition failed. The answer is letter A. This is under the first conditional clause wherein a possible event is to be done in the future. An example would be "If I have the money, I will go to Korea."</span>

You might be interested in

Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real intere

MArishka [77]

Solution :

Given :

The bonds offer a $\text{real interest rate}$ of 4.5% per year

Tax rate = 10% = 0.10

Inflation rate = 2

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

$\text{Nominal interest rate}$ = 2 + 4.5

= 6.5

$\text{After tax nominal rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate})$

$\text{After tax nominal interest rate}$ = $6.5 \times (1-0.10)$

$=6.5 \times 0.90$

= 5.85

After tax real interest rate = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 5.85 - 2.0

= 3.85

$\text{Inflation rate}$ = 7.0

$\text{Real interest rate = 4.5}$

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

= 7 + 4.5

= 11.5

$\text{After tax nominal interest rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate })$

$=11.5 \times (1 - 0.10)$

$=11.5 \times 0.90$

= 10.35

$\text{After tax nominal interest rate}$ = 11.5 x (1 - 0.10)

= 11.5 x 0.90

= 10.35

$\text{After tax nominal interest rate}$ = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 10.35 - 7.0

= 3.35

Putting all the value in table :

$\text{Inflation rate}$ Real interest Nominal interest After tax nominal After tax

rate rate interest rate interest rate

2.0 4.5 6.5 5.85 3.85

7.0 4.5 11.5 10.35 3.35

Comparing with the $\text{higher inflation rate}$ , a $\text{lower inflation rate}$ will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.

7 0

3 years ago

Under the temporal method, income statement items that relate to newly recognized assets and liabilities generally are remeasure

ad-work [718]

Answer: historical exchange rate

Explanation:

The temporal method is also referred to as the historical method. Under this method, the currency of a foreign subsidiary is being converted into the currency of the parent company.

It should be noted that under the temporal method, the income statement items which relate to newly recognized assets and liabilities generally are remeasured using the historical exchange rate.

6 0

3 years ago

The following information is available for Moiz Company:________.

notsponge [240]

Answer and Explanation:

1. Interest Revenue $23,000

Sales Revenue $510,000

To Income Summary $533000

(Being closing of revenues accounts are closed)

2. Income Summary $453,000

To Sales returns $20,000

To Sales Discounts $7,000

To Cost Of goods sold $310,000

To Freight out $2,000

To Advertise Exp $15,000

To Interest Exp $19,000

To Salaries & Wages $55,000

To Utility $18,000

To Depreciation $7,000

(Being closing of expenses accounts are closed)

3. Income Summary $80,000

To Retained Earning $80,000

(Being profit is recorded)

4. Retained Earning $30,000

To Dividends $30,000

(Being closing of dividend is recorded)

8 0

3 years ago

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

musickatia [10]

Explanation:

Primare Corporation

Cost of Goods Manufactured

Beginning work-in-process inventory $56,000

Manufacturing costs:

Direct materials:

Beginning inventory $12,000

Purchases $30,000

Materials available $42,000

Less: Ending inventory -$18,000

Direct materials used $24,000

Less:Indirect materials included in manufacturing overhead -$5,000

Other manufacturing costs

Direct labor $58,0000

Manufacturing overhead applied to work in process $87,000

Less: Ending work-in-process $65,000

Cost of goods manufactured $155,000

b. Primare Corporation

Cost of Goods Sold

Beginning finished goods inventory $35,000

Add: Cost of goods manufactured $155,000

Finished goods available for sale $190,000

Less: Ending finished goods inventory -$42,000

Unadjusted cost of goods sold $148,000

Add: Under applied overhead $4,000

Cost of goods sold $152,000

5 0

3 years ago

A corporation following a _________ emphasizing vertical or horizontal growth would probably want an aggressive new chief execut

UkoKoshka [18]

Answer:

concentration strategy

Explanation:

This is an approach in which a business focuses on a single market or product which allows the company to invest more resources in production and marketing in that one area.

3 0

3 years ago

Read 2 more answers