Answer:
The undervaluation penalty is $560
Explanation:
Solution
Under valuation penalty applied when a person valued assets understated to save tax.
The undervaluation reduces the tax and hence comes with accuracy related penalty.
From the example, Tim undervalued the gift of $7,000 which is valued at $15,000 by IRS.
The deduction is undervalued for more than 150% and hence penalty is assessed. this is so because the income tax valuation is lower than 40%, so the penalty rate is 20%
Thus,
The calculation of overvaluation penalty is given below:
Undervaluation = $8000
Tax rate = 35%
Tax amount = $2,800
Penalty rate = 20%
Penalty on undervaluation is =$560
Therefore, the undervaluation penalty is $560
The benefit Zappos receive was the new program of productivity in the institution of education
Answer:
b.9%
Explanation:
Formula for annual rate of return formula is as follows;
Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1
t = the total holding period of investment = 12 years
Old value = 22,000
New value = 62,000
Next, plug in the numbers to the formula;
Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1
r = [2.8182 ^(1/12)] - 1
r = 1.0902 -1
r = 0.0902 or 9%
A and C is correct
Explanation:
According to the expectations theory of the term structure :
- The yield curves should also decrease as the slope upward.
- Short-term prices are expected to stay fairly stable in forward whenever the return curve is sharply increasing.
Theory of expectations is focused on investors ' confidence in forward prices as future contracts represent (and some might argue predict) potential short-term interest rates.
Investors in two recent 1-year bond transactions and investing in a single two-year bond today show the same level of value.
Is this for science ?A product is what’s left after a chemical reaction ,reactants transform a product during a chemical reaction
