Answer:
D. $4,600
Explanation:
Riley's casualty cost deduction comes from the substraction between the adjusted basis, which is the net cost of an asset after adjusting for various tax-related items, and the amount the insurance paid Riley.
The minimum requirement of salary = $53760
<u>Explanation:</u>
Cost of living in city is 12 percent higher than where Luke Anderson lives. So, Luke Anderson will require 12 percent higher salary than existing salary in order to maintain the existing standard of living
<u>The calculations are as follows.
</u>
Current salary of Luke Anderson = $48000
12 percent increase = 48000 multiply with 12 percent = 5760
Thus, the required minimum salary = 48000+ 5760 = 53760
So, Luke Anderson will require minimum salary of $53760
Answer:
d. encourages both U.S. and foreign residents to buy U.S. assets.
Explanation:
The interest rate in a country has influence on the capital of it.
When the real interest rates in the United States increase, the U.S. assets have higher value so that become attractive to funds. Thus, it encourages both foreign and U.S. residents to buy U.S. assets.
Besides, when the real interest rate in the U.S. increases, it encourages the U.S residents to save more U.S. assets and discourage them from purchasing foreign assets
=> The net capital inflow in U.S would increase
