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3 years ago

How much interest is earned in just the third year on a $1,000 deposit that earns 7% interest compounded annually?

Business

1 answer:

Sav [38]3 years ago

4 0

Answer:

Interest earn= $80.14

Explanation:

Giving the following information:

PV= $1,000

i= 7%

n= 3

First, we will calculate the future value at the second year:

FV= PV*(1+i)^n

FV= 1,000*(1.07^2)

FV= 1,144.9

Now, for the third year:

FV= 1,144.9*1.07= 1,225.04

Interest earn= 1,225.04 - 1,144.9= $80.14

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Spartan Corporation, a U.S. corporation, reported $2 million of pretax income from its business operations in Spartania, which w

pashok25 [27]

Answer:

A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.

B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.

C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.

Explanation:

D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000

D.2.

If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000

8 0

3 years ago

Suppose that Par, Inc., management encounters the following situations:

Anna11 [10]

Answer:

[a]. 10560, [b]. 14160, [c]. 7668.

Explanation:

[a]. In order to be able to solve this particular question we have to consider what is known as LINEAR PROGRAMMING.

We have the assumption that the function to be equals to 10A + 9B. The first step that we need to take here is to find the constraint for the linear programming relaxation which is;

1/2A + 5/6B $\leq$ 600.

1/10A + 1/4B $\leq$ 135. Thus, A $\geq$ 0 and B

With the help of excel solver and graphs, that we have the profit at $18 we are going have the value of A =300 and B =420. Therefore, the optimal solution = [300,420].

Thus, we have the objective function value to be = 10,560. [that is 10 * 300 + 420 * 18}.

[b]. For option b, where the profit increases to $20, the optimal solution lies on A =708 and B =0. Hence, objective function value = 14,160[ that is 20 * 708 + 0].

[c]. Here, there is increase in the sewing operation capacity to 750 hours. Therefore, we will have the value of A = 540 and B = 252.

Thus, the objective function value = 7668.

8 0

3 years ago

Constructive conflict Multiple Choice encourages employees to re-examine their basic assumptions about a problem and its possibl

anyanavicka [17]

Answer:

encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

Explanation:

Constructive conflict encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

When employees working in an organization are engaged in a constructive conflict, they are able to draw from a variety of ideas, opinions and views of the other party and by extension moving the organization forward in its operations, goals, objectives and mission.

Hence, a constructive conflict enhances the level of output or production in an organization rather than inhibitions of growth and development.

7 0

3 years ago

At a sales volume of 30,000 units, Carne Company's total fixed costs are $30,000 and total variable costs are $45,000. The relev

Anna [14]

Answer:

$2.25

Explanation:

sale volume of company = 30,000 unit

total fixed cost are = $30,000

total variable cost $45,000 for 30,000 unit

1 unit = 45000/30000 = $ 1 . 5

for the sale of 40,000 unit

the total expected cost

= Fixed cost + Variable cost

= $30,000 + 40,000×$1.50

= $30,000+$60,000

= $90,000

Cost per unit:

= $90,000/40,000

= $2.25

8 0

3 years ago

1. An 80%-owned subsidiary sells merchandise to its parent at a markup of 25% on cost. During the current year, the parent paid

Vedmedyk [2.9K]

Answer:

The unrealised profit (PURP) of $5,000 [ (125,000 * .20) * (.2) ] should be subtracted from the profit share of Non-Controlling Interest.

Explanation:

When we prepare consolidated financial statements, we treat the companies of group as a single entity. That's why the intra-group transactions must be removed the consolidated statements. This involve adjustment of current accounts, unrealised profit on sale of goods/non-current asset, loan given by one group company to another etc.

When goods are sold by one group company to another at a markup and the buyer has not yet sold it to the third party, then the markup (profit) loading on these items is unrealised from group's point of view. This needs to be removed from the consolidated accounts because no one can make profit by trading with himself. This profit is termed as realised when the goods are sold to the third party. In the individual accounts, profit on this transaction has a credit balance so to remove it we debit the "cost of goods sold of group" and a credit entry to it is made to "inventory". This credit entry to inventory bring down the balance of inventory to what was the cost of that inventory to the group. Moreover, the recording of revenue by seller and inventory by buyer on intra-group sales and purchase is also adjusted.

After all the adjustments are made, the profit is distributed between parent's retained earnings and non-controlling interest. Now if the seller of goods is subsidiary, like in this case, the amount of unreaslised profit is deducted from NCI's profit share to calculate the profit attributable to parent's retained earnings.

7 0

3 years ago