Answer:
It will be considered a long-term capital gains as Renata Corporation holded for a priod of time longer than a year.
The gain will be the difference between tax basis (cost - tax purporse depreciation) which amount to $13,000
Explanation:
selling price 110,000
180,000 - 83,000 = 97,000 tax basis
long.term capital gain 13,000
Answer:
$380 million
Explanation:
Given that,
Deposits = $120 million
Required reserve ratio = 20 percent
Total bank reserves = $100 million
Required reserve ratio refers to the portion of deposits that is kept with the reserve bank.
Required reserves:
= Deposits × Required reserve ratio
= $120 million × 0.2
= $24 million
Excess reserves:
= Total reserves - Required reserves
= $100 - $24
= $76
So, there is a excess reserves in this economy.
Money multiplier = 1/Required reserve ratio
= 1/0.2
= 5
Therefore, the total money creation potential of this deposit is as follows:
= Excess reserves × Money multiplier
= $76 × 5
= $380 million
Hence, an increase in deposit creation by $380 million.
Answer:
- <u><em>It is best for Jerilyn to use the $10 coupon when the value of the purchase is equal or lower than $66.67, and it is best to use the $10 coupon when the value of the purchase is greater than $66.67</em></u>
Explanation:
Assume the value of the purchase is P.
Then <em>15%</em> of P is 0.15P.
To obtain the maximum benefit from the <em>15% coupon</em>, <em>Jerilyn</em> should use it when the discount from it is greater than the discount from the $10 coupon. This is:
Divide both sides by 0.15:
If the value of the purchase is equal to $66.67 the total discount with any cuopon are equal; if it is lower than $66.67, the discount of the $10 coupon is greater.
Thus, you conclude that for a $66.67 purchase she should use the $10 cuopon and for a purchase greater than $66.67 she should used the 15% cuopon.
Answer: Maturity Stage
Explanation:
At the maturity stage, the product reaches its highest point of demand and sales. The market is getting closer to saturation, so the number of potential new customers is limited, and competition increases. During the saturation and decline stage, sales stop increasing, so profitability is lowered.
Sidewinder, Inc., has sales of $670,000, costs of $337,000, depreciation expense of $82,000, interest expense of $47,000, and a
Pani-rosa [81]
Answer:
Additions to Retained earnings $78,040
Explanation:
The additions to the retained earnings of Sidewinder, Inc can be calculated as follows
Sales $670,000
Costs ($337,000)
Depreciation expense ($82,000)
Interest expense ($47,000)
Profit before tax $204,000
[email protected]% ($48,960)
Profit after tax $155,040
Less:Dividends ($77,000)
Additions to Retained earnings $78,040
