Answer: The entry is a reflection cash payment of $8000 which is a reduction of liabilites of $3000 on salaries payable and an expense of $5000 incurred on salaries.
Explanation: The transaction coud be a typical scenario of a payment for salaries previously due provided for while also paying for the presently incurred salaries expense.
Answer:
Points
Explanation:
Mortgage points or discount points are prepaid interest available when obtaining a mortgage.
When a lender charges the borrower points he is in effect increasing the yield on the loan above the interest rate agreed on the loan.
Borrowers can also offer points to the lender to obtain a reduced interest rate and reduced monthly payment in exchange for upfront payment of points.
Answer:
C. The market demand for the product
Explanation:
Monopoly is a market situation whereby the market is characterized with having a single seller and multiple buyers. Here, the seller faces no competition as he is the only one selling that particular product in the market. The monopolist faces a downward sloping market demand curve. As a result, as the monopolist increases its output, for every additional unit of output, the process must fall. Thus, leasing to the consequent fall in the marginal revenue. Thos os because, since he is the only sellers in order to sell more outputs he must reduce the prices oer each output.
Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
