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Nitella [24]
3 years ago
6

Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He

uses $40,000 of the loan to buy a building and the remaining $20,000 for equipment. During the first year, the store has a loss of $24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse
Business
1 answer:
kvv77 [185]3 years ago
5 0

Answer:

$30,000

$6,000

Explanation:

Carlos risk = $30,000

Carlos risk of $30,000 is the amount of funds which he had invested in the course of his business which is why Carlos is not considered at-risk for the nonrecourse loan reason been that carlos is not found liable because the loan was not used in the business which makes him to have a risk of $30,000.

$24,000 loss that occured will reduces Carlos’ amount at-risk to $6,000

($30,000 - $24,000)

=$6,000

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The choice of producing the component internally or purchasing the component externally is known as the
larisa86 [58]

The choice of producing the component internally or purchasing the component externally is known as the make or buy decision.

A manufacturing or purchasing decision is the act of choosing whether to manufacture the product in-house or from an external supplier.

Make-or-buy decision is the act of choosing whether to manufacture the product in-house or from an external supplier. Similar to outsourcing decisions, making or buying decisions require comparing the costs and benefits of producing in-house and buying elsewhere.

ABC Manufacturing Company has a contract to supply 6,000 units of MVP. This also requires his 6,000 units of MVP essential components. The estimated cost of manufacturing these 6,000 units of the required components is approximately $234,000.

Learn more about make or buy decision here:brainly.com/question/13781293

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4 0
1 year ago
Match each role on the left with its corresponding description on the right.
Mariulka [41]

Answer:

1. Book keeper: Carol, an employee of Fresh Café, documents all of its monetary transactions

2. Shareholder: Kyle purchased $1,500 of stock in Computers 'R Us

3. Auditor: B. Kim, an outside contractor, objectively analyzes Flip's Clothing Boutique's accounting processes and data

4. Controller: Charlie oversees all of Groove Market's financial reporting and accounting

Explanation:

1. A bookkeeper oversees a company’s financial data by maintaining books on accurate information such as payroll, accounts receivables, accounts payables and any other financial transactions and reconciliation.

2. A shareholder, also known as a stockholder is a person or other entity who owns at-least one share of a company’s stock or equity.

3. In auditor is a person who is responsible for evaluating the accuracy and reliability of a company’s financial statements. Auditors can be internal or external. Internal auditors are those who audit the financial statements of the company they exist in and external auditors are those from outside audit firms who are hired to evaluate another company’s financial information.

4. A controller in an individual who has responsibility for all accounts-related activities including financial, managerial and high level accounting.

7 0
3 years ago
DO NOT ANSWER THIS QESTION
siniylev [52]

Answer: ok

Explanation:

8 0
2 years ago
The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool cri
Semmy [17]

Answer:

6.4 minutes

Explanation:

Average small tool per day = 445

 working hours = 8     so that is 8*60 =  (480 minutes)

Waiting time  =  

\frac{[445*(\sqrt{1} )]}{[2*[480-(445*1)]]}  (image of the operation on the attach file)

 =[445]/[(2*35)]

=445/70

=6.357 minutes

3 0
3 years ago
Show that Black-Scholes call option hedge ratios also increase as the stock price increases. Consider a 1-year option with exerc
Ivan

Answer:

Check explanation.

Explanation:

A call option hedge ratio shows how an option price with respect to price changes in the underlying stock. A call option hedge ratio is used in determining the number of shares of stocks to hedge an option position.

We have Call option with the following characteristics:

X = 50; T=1 year; standard deviation = 20%; T-bill rate = 3%.

Hedge ratio = N(d1) from the Black-Scholes equation

For S=$45, d1 = -0.0268 and N(d1) =0.489309.

For S = $50, d1 = 0.5 and N(d1) = 0.6915.

If S = $55, d1 = 0.97655 and N(d1) = 0.8356.

From the above values obtained, it means that the price of the call option becomes more sensitive to changes in the price of the stock at higher stock prices.

6 0
3 years ago
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