Answer:
1- B. Expense will be $140,000 and liability will be $250,000
2- d. $250,000
3- d. $250,000
Explanation:
The expense will be $140,000 which is calculated by year 1 and year 2 percent filled. The calculation is as follows:
Year 2 liability : $1,000,000 * 25% = $250,000
Year 1 liability : $1,000,000 * 11% = $110,000
Year 2 expense = $140,000.
Answer:
Explanation:
USD GBP Prefers
Dell 7 9 GBP
Virgin Airlines 8 8.5 USD
In a swap exchange Party A will have a relative preferred position in one money and Party B will have a bit of leeway in the other cash. For this situation Dell has a similar bit of leeway in USD getting rate and Virgin has a preferred position in GBP acquiring rate.
Additionally note that dependent on the FICO assessments of the organization the acquiring rate will vary pulling in parties for a swap exchange.
Virgin would borrow £10 million for two years and Dell would borrow $16 million for two years. The two companies would then swap their proceeds and payment streams. Then they enter into a swap agreement to exchange their cash flows to get their preferred currency rates with an interest rate mutually benefiting both the parties.
Gross earnings is your total income earned without the deductions in place.
Net pay on the other hand is your total income plus tax deduction.
Answer: See explanation below for answer. The options are:
A. $13,000
B. $ 5,000
C. $18,000
D. $14,000
Explanation:
A taxpayer can deduct the medical expenses that have been paid for a child at the time of adoption if the child should qualify as the dependent of the taxpayer when the medical expenses were paid.
In addition, should a taxpayer pay an adoption agency for the medical expenses that the adoption agency has already paid, then the taxpayer is treated as though he/she has already paid those expenses.
In the scenario given above, Mr. and Mrs. Sloan can deduct the child's medical expenses of $5,000 that they have paid.
But on the other hand, the legal expenses of $9,000 and agency fee of $4,000 that were incurred in during the adoption process will be treated as nondeductible personal expenses.
However, Mr. and Mrs. Sloan will be able to claim a nonrefundable tax credit amounting up to $13,570 for these qualified adoption expenses.
Answer:
net income $72,000
Explanation:
The computation of the amount that should be reported is shown below:
Revenue $600,000
less:
operating expense -$420,000
restructing costs -$100,000
interest expense -$20,000
Add: gain on sale of investments $30,000
EBIT $90,000
less income tax at 20% - $18,000
net income $72,000
