Answer:
The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.
Explanation:
The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 can be calculated using the following formula:
Interest expenses deductible = (Taxable interest / Total interest) * Interest expenses .................... (1)
Where;
Taxable interest = $1,200
Total interest = $6,000
Interest expenses = $500
Substituting the values into equation (1), we have:
Interest expenses deductible = ($1,200 / $6,000) * $500
Interest expenses deductible = 0.20 * $500
Interest expenses deductible =$100
Therefore, the amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.
Answer:
$8,800 favourable
Explanation:
The computation of direct material quantity variance is seen below;
= Standard price × ( Standard quantity - Actual quantity)
= $4 × [(2 gallons × 7,200 units) - 12,200 gallons)
= $4 (14,400 gallons - 12,200 gallons)
= $4 × 2,200 gallons
= $8,800 favorable
Therefore, the direct materials quantity variance for last month is $8,800 favourable
Answer:
$5.89
Explanation:
The computation of current dividend per share is shown below:-
(Dividend in One Year) ÷ Current Price
= 14% ÷ 2
= 7%
Dividend = Dividend yield × Stock currently sold per share
= 0.07 × $90
= 6.3
Current dividend per share = Dividend ÷ (1 + Dividend yield)
= 6.3 ÷ (1 + 0.07)
= 6.3 ÷ 1.07
= $5.89
Therefore for computing the current dividend per share we simply applied the above formula.
Answer:
Option (B) is correct.
Explanation:
Interest accrued for 6 months (January 1 to July 1):
= $1,000 × 6% × (6 ÷ 12)
= $30
This shall be credited to interest revenue as this is the income of the investor.
Sale value of investment:
= Bond selling price on July 1 + Interest accrued for 6 months
= $1,200 + $30
= $1,230
Gain on sale of investment:
= (Selling price - Purchase price) - Accrued interest
= ($1,230 - $1,000) - $30
= $200
Therefore, the Journal entry for this transaction is as follows:
Cash A/c Dr. $1,230
To debt investments $1,000
To Gain on sale of investment $200
To Interest revenue $30
(To record the cash proceeds at the time the bond is sold)
Answer:
the interest rate rises.
Explanation:
When interest rate increase, borrowing money from the banks become expensive. Individuals and companies will not be able to borrow money to finance investments as the interest rates would be discouraging. When the interest rates are high, saving with banks becomes more attractive. Interests earned of deposits become more appealing than the rate of return of an investment project.
Investments increase when the economy is doing well. If real GDP is to increase or consumers are more optimistic, it means the economy is doing well. Firms operate at near capacity if the economic conditions are favorable. In these three situations, investments will increase, not decrease.
