Answer:
b. $100,000
Explanation:
Provided information
Beginning balance of account receivable = $25,000
Collection from customers = $100,000
Ending balance of account receivable = $15,000
Since we have to find out the gross taxable income, so we considered only the collection from customers as this is the amount which is received and therefore, it has come under the gross taxable income i.e $100,000.
<span>Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for no part of the price of the ticket. This is because minors lack the legal capacity to make a contract.</span>
Answer:
Option (B) 10.87%
Explanation:
Data provided in the question:
common stock outstanding = 30,000
Market price = $15.00
Issuing price of share = $31 per share
Total face value = $280,000
Selling price = 86% of par
Cost of equity, ke = 13%
After-tax cost of debt, kd = 6.9%
Beta = 1.48
Tax rate = 30%
Now,
Market value of debt, Md = Total face value × Selling price
= $280,000 × 86%
= $240,800
Market value of equity, Me = Stocks outstanding × Market price
= 30,000 × $15
= 450,000
Thus,
WACC = [ Kd × Md + Ke × Me ] ÷ ( Md + Me )
= [ 0.069 × $240,800 + 0.13 × $450,000 ] ÷ ( $240,800 + $450,000 )
= $75,115.20 ÷ $690,800
= 0.1087
or
= 0.1087 × 100%
= 10.87%
Option (B) 10.87%
When the market value of all final and intermediate goods and services in an economy are added up in a given year, this would lead to <u>Double Counting. </u>
<h3>What is double counting?</h3>
Double counting is a problem in Gross Domestic Product calculation where intermediate goods are added to final goods to determine the country's productivity.
Adding intermediate goods is a faux pass because the value of intermediate goods are included in the final goods and services price so there is no need to add them again.
If they are added, then the value of the intermediate goods would have been counted twice or double. This is where double counting comes from.
For instance, when making bread, flour is an intermediate good. The bread already includes the cost of this flour so adding the cost of the flour would mean inflating the true cost of the bread.
In conclusion, this is double counting.
Find out more on double counting at brainly.com/question/1112587
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Answer:
The correct answer to the following question is option B) The government should use the contractionary fiscal policy to shift the aggregate demand to the left .
Explanation:
In the situation where inflation is rising at a fast speed in the economy, then government needs to use contractionary fiscal policy in which government will decrease their spending and increase the taxes in order to decrease the spending of people and the aggregate demand ,which will then ultimately lead to shift in the aggregate demand towards the left.
