Answer:
It will take 30.10 year
Explanation:
We have given initial investment $500000
Future value = $ 1 million = $1000000
Rate of interest r = 1.79 %
We have to find the time taken to reach the amount $1000000
We know that future value is equal to 
Taking log both side
n×0.0077 = 0.3010
n = 39.09 year
Now in second case rate of interest
r = 2.34 %
So 
taking log both side
log 2 = n log 1.0234
n×0.01 = 0.3010
n = 30.10 year
The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
Answer:
- Paul Donut Franchisee : Perfectly Elastic Supply
- P & G Facial Tissues : Elastic Supply
- Papermate Pens : Inelastic Supply
- Bright Ideas Lightbulbs : Perfectly Inelastic Supply
Explanation:
Price Elasticity of Supply is sellers' quantity supplied response to price change. P(Es) = % change in supply / % change in price.
Supply can be classified by Price Elasticity of Supply, as undermentioned :
- Elastic Supply : P(Es) > 1 ; % change in supply > % change in price
- Inelastic Supply : P(Es) < 1 ; % change in supply < % change in price
- Unitary Elastic : P (Es) = 1 ; % change in supply = % change in price
- Perfectly Elastic Supply : P(Es) = ∞ ; Supply responds infinitely to any slight price change & so prices are constant.
- Perfectly Elastic Supply : P (Es) = 0 ; Supply responds negligibly to massive price change & so quantity supplied is constant
- Paul Donut Franchise : Unlimited Supply at constant price, so supply perfectly elastic
- P & G facial tissues : % change in supply i.e 66% > % change in price i.e 10% , so supply is elastic
- Papermate pens : % change in supply i.e 10 % < % change in price i.e 15% , so supply is inelastic
- Bright Ideas Lightbulbs : % change in supply 15% negligible in relation to 400% price change , so supply is perfectly inelastic
Answer:
$127,000
Explanation:
Calculation for the amount to be reported as taxable income
Using formula
Taxable income=[Year 8 Income Statement + Rent received in advance -Income from exempt municipal bonds -(Depreciation deducted for income tax purposes-Depreciation deducted for financial reporting)]
Let plug in the formula
Taxable income=[$130,000+$ 22,000 -$ 17,000 -( $ 18,000 -$ 10,000 )]
Taxable income=$130,000+$ 22,000 -$ 17,000 -$8,000
Taxable income=$127,000
Therefore the amount that Packer should report as taxable income will be $127,000
