Answer:
b.$20,000 ordinary income and $4,000 net long-term capital gain
.
Explanation:
For 2018, each shareholder should report:
180,000/9 = 20,000
36,000/9 = 4,000
b.$20,000 ordinary income and $4,000 net long-term capital gain
Answer:
PV = $188,653.22
Explanation:
Given the following information, firstly we need to calculate present value of cash flow for the last 9 years. The present value of cash flow therefore
PVA2= $1,800 {[1 – 1 / (1 + 0.10 / 12)^108] / (0.10 / 12)}
PVA2= $127,852.84
Thus, present value of Cashflow today
PV = $127,852.84 / [1 + (0.08 / 12)]^84+ $1,800{[1 – 1 / (1 + 0.08 / 12)^84] / (0.08 / 12)}
PV = $188,653.22
Answer:
interest rate parity
(0.8/1) * (1.4*3/12)/(1.25*3/12) = 0.8
Hence It is proved that interest rate parity does not hold because the vale of forward contract is $0.79/CD.
Inflation causes demand curve to shift right and the supply curve to shift left
Answer:
d. $1,000
Explanation:
GDP = Consumption Expenditure + Domestic Private Investment + Government Expenditure + Net Exports ( Exports - Imports)
GDP = ( durable goods in 2018 + non- durable goods in 2018+ services in 2018) + ( Purchase of Machines + Change in inventories ) + ( Paid salaries of soldiers and police officers + expenditure on building missiles and highways) + Net exports ( Exports - imports )
GDP = ( $200 + $200 + $100 ) + ( $200 + ( $500 - $400 )) + ( $200 + $100 ) + ( $400 - $500 )
GDP = $1,000
Hence, the total GDP for 2018 is $1,000.