Answer:
The bond is worth $651.59 today
Explanation:
FV = $1000
N = 8
I/Y = 5.5%
Present Value = ?
PV = FV*(1+r)^(-n)
PV = $1000 * (1 + 0.055)^-8
PV = $1000 * (1.055)^-8
PV = $1000 * 0.651599
PV = $651.59
Answer:
TRUE
Explanation: If the return on money does not rise in relation to the expectation of a rise in inflation, people will have less need to keep more money with them, if other factors remain constant (ceteris paribus) the relative return on goods such as Land,gold,turnips,buildings etc and other non financial items will increase. This situation tries to show the relationship between a rise in inflation and a rise in non financial items this tries to explain the MONEY THEORY.
Answer:
What is Swan’s taxable gain on the distribution of the cottage?
Fair market value of property = 200000
Less: adjusted basis of property= 115000(150000-35000)
Taxable gain on distribution = 85000
What is Swan's current E&P after the distribution on 12/31/13?
Swans current E&P = 300000
Add: taxable gain on distribution = 85000
Less: distribution made = 165000(200000-35000)
After distribution E&P = 220000
What is the taxable dividend to the shareholder (if any)?
Taxable dividend to shareholders = 200000-35000 = 165000
What is the shareholder's basis in the cottage?
Shareholders basis is FMV of property i.e. 200000
Answer:
$40 billion
Explanation:
Data provided in the question:
Amount spend by government = $4 trillion
Amount raised by Taxes = $3 trillion
Interest rate = 4%
Now,
The bonds to be raised by the government
= Amount spend by government - Amount raised by Taxes
= $4 trillion - $3 trillion
= $1 trillion
or
= $1000 billion
Therefore,
The interest paid by the government each year
= Amount of bonds × Interest rate
= $1000 billion × 0.04
= $40 billion
Answer:
Materiality of the assets
Explanation: Materiality is known to as misstatements, including omissions, and these are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
