The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%
Answer:
Explanation:
The government needs to be on top of these situations because each of these factors plays a huge role in the wellness and size of a population. A market economy needs a certain healthy and large population in order to function correctly. The population needs to produce the products and services while at the same time purchasing those products and services from one another in order for the market cycle to function. If such factors as disease and pollution make people sick it will severely cripple the market economy.
Answer:
$198,000 and $0
Explanation:
The calculation is shown below:
The Cost of the land is
= Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $178,000 + $15,300 + $1,100 + $2,300 + $1,300
= $198,000
As the property is buy for the building site so here no cost will be recognized and allocated to the new building cost
hence, it would be zero
Answer: a) increases expenses and lowers taxes.
Explanation:
Depreciation accounts for the wear and tear in fixed assets over their period of use. It is accounted for every period in the Income Statement as an expense which means that its addition increases the business's expenses.
It does that the advantage of being tax deductible however. This then means that it can be subtracted from Net Income for tax purposes. When that is done, it will reduce the Net Income thereby reducing the amount of taxes that can be charged on the company.
