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3 years ago

Earnings on an IRA grow until

Business

1 answer:

frez [133]3 years ago

3 0

Earnings on an IRA grow until C. you take the money out.

An IRA will continue to earn interest and gain value until your money is taken out of the account. Once the money is taken out, the interest will stop being earned. An IRA is a good savings plan to invest your money into for potential gain. There are low and high risks with investments but IRA's are pretty easy to navigate for first time investors.

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The government uses indexing to revise tax brackets so that workers do not pay higher taxes just because

Arturiano [62]

The answer to this statement is letter a. of individual income taxes. The government uses indexing to revise tax brackets so that workers do not pay higher taxes just because of individual income taxes. This is to ensure equality of income between workers.

3 0

3 years ago

Can you explain operating income

Sveta_85 [38]

Answer:

an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold

Explanation:

shows your business's ability to generate earnings from its operational activities.

Operating income is a company's profit after deducting operating expenses

Operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses.

3 0

3 years ago

a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project a

mylen [45]

Answer:

a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018

we must first determine the market price of the bonds:

PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779

PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820

market value of the bonds = $753,779 + $1,370,820 = $2,124,599

January 1, 2018, bonds are issued at a premium

Dr Cash 2,124,599

Cr Bonds payable 2,000,000

Cr Premium on bonds payable 124,599

b. Prepare a bond amortization schedule up to and including January 1, 2022

since we are not told which amortization method to use, I will use the straight line method.

Date Interest Cash Premium Carrying

expense paid amortization value

7/2018 $103,770 $110,000 $6,230 $2,118,369

1/2019 $103,770 $110,000 $6,230 $2,112,139

7/2019 $103,770 $110,000 $6,230 $2,105,909

1/2020 $103,770 $110,000 $6,230 $2,099,679

7/2020 $103,770 $110,000 $6,230 $2,093,449

1/2021 $103,770 $110,000 $6,230 $2,087,219

7/2021 $103,770 $110,000 $6,230 $2,080,989

1/2022 $103,770 $110,000 $6,230 $2,074,759

c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.

bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230

January 1, 2020, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

January 1, 2021, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

d. Prepare the journal entry to record the bond called on January 2021 at 106

Dr Bonds payable 2,000,000

Dr Premium on bonds payable 87,219

Dr Loss on retirement of debt 32,781

Cr Cash 2,120,000

5 0

4 years ago

A general motors financial analysts needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his

gladu [14]

Answer:

The real gain is 18.2%

Explanation:

Given

GDP in 2000 = $672 billion

GDP in 2010 = $1,69 billion

Interest rate in 2000 = 6.79%

Interest Rate in 2010 = 3.71%

Deflator in 2000 = 24

Deflator in 2000 = 51

Real gain is calculated as follows;

Division of real GDP gain for both years - 1.

To calculate the real GDP gain in 2000 and 2010.

This is calculated by; Nominal GDP/ deflator

In 2000; real GDP gain = $672b/24

Real GDP gain = $28b

In 2010; real GDP gain = $1690b/51

Real GDP gain = $33.1b

Calculating the real gain

Real gain = Real GDP gain in 2010/Real GDP gain in 2000 - 1

Real Gain = $33.1b/$28b - 1

Real Gain = 1.182 - 1

Real Gain = 0.182

Real Gain = 18.2%

Hence, the real gain is 18.2%

4 0

3 years ago

Read 2 more answers

Expansion and growth, with new products and new markets, are the keys to Google’s __________ approach to marketing strategy. Goo

iogann1982 [59]

Answer:

Expansion and growth, with new products and new markets, are the keys to Google’s aggressive approach to marketing strategy.

Explanation:

Google's business model is majorly based on advertising. It has the potential to generate revenue from both advertising sources and non-advertising sources.

In case of Aggressive Marketing, it involves active programs so that an organization can expand into new markets and accelerate new opportunities. In this kind of marketing strategy new product development is pursued and even additional market share can be obtained. The key for Google's expansion and its growth is the aggressive approach to marketing strategy.

5 0

3 years ago