Answer and Explanation:
The computation is shown below;
1. The willing amount to pay for the promise should be less than $20 that represents the time value of money
2. Now the present value is
= Received amount × discounting factor at 6% for 3 years
= $1,000 × 0.839
= $839
3. Now the interest rate is
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$1,000 = $863.84 × (1 + rate of interest)^3
rate of interest =5% approx
EPS = $1.44 (after rounding off)
<u>Explanation:</u>
<u>The calculation of Earnings per share is as follows:
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Particulars Amount
Earnings before interest and tax = 71325
Less: amount of interest = 0
Earnings before tax = $71325
Less : the amount of tax ( 34 percent) = 2425.05
Net income = $47074.5
The number of shares given = 32,800
The formula of calculating the earning per share is = Net income divided by the number of the shares of a company
Thus, EPS = $47074.5 divided by 32,800 = $1.44 (rounded oof)
Answer:
The answers are:
- Jerry must recognize $0 of gain on the transfer of the rental house
- Sally's tax basis is $80,000
Explanation:
Capital gains taxes are usually excluded when you sell a house or transfer the house in a divorce settlement. The exclusion is up to $250,000 of capital gains.
Since Sally didn't buy the house, but received it as part of their divorce settlement from Jerry, the same cost basis will apply to Sally.
Answer:
C) through public elections of local officials
Explanation:
The Cost–benefit analysis is also sometimes known as the benefit–cost analysis. It is the systematic approach in estimating the weaknesses and the strengths of the alternatives that is used to determine the options which provides the best method or approach to achieve the benefits while preserving a savings.
It is used to maximize the social welfare. It is for the optimal quantity of any public good. The cost benefit analysis of the public goods like the firework displays should be carried out by a public election of the local officials.
Answer:
To reach full employment (reduce inflationary gap), government spending must fall by $8 million.
Explanation:
Multiplier = 1 / (1 - mpc) = 1 / (1 - 0.8) = 5
Output gap = Current GDP - Potential GDP = $100 - $60 = $40 million
Amount of change in government expenditure needed = Output gap / mpc = $40 / 5 = $8 million
Since the Potential GDP is less than the Current GDP, this implies that the government spending must fall by $8 million to reach full employment.
Therefore, to reach full employment (reduce inflationary gap), government spending must fall by $8 million.
