1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zheka24 [161]
3 years ago
14

George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors sh

ould be considered?
George needs assistance understanding the different application of prepaid income under tax law and financial accounting
Business
1 answer:
3241004551 [841]3 years ago
6 0

Answer:

The classification including its subject in question is outlined in the section given elsewhere here.

Explanation:

1...

<u>Tax</u>

  • Tax-Exempt Bonds: Municipal bonds gain financially by being able to benefit from income and sales taxes. This will give the company the added value with just paying taxes whenever the moment arises.
  • Taxable Bonds: Nonetheless, taxable bonds allow the borrower to pay county and national taxation, and therefore are usually sold to ventures that do not help the common person.

<u>Rate of Return</u>

  • Tax-Exempt Bonds: Municipal bonds, and perhaps tax-exempt treasuries, bring a lower cost of capital than that of the subject to tax paid great also because the investment company was also tax-exempt.
  • Taxable Bonds: Taxable investors consider a rate of profitability for the market. Because this yield is greater than those of mutual funds, measurements of yields are necessary on a constant schedule.

<u>Net Taxable Income </u>

  • Tax-Exempt Bonds: Throughout comparative analysis with either a municipal bond, developers could receive less profit with a taxable contract however if designers earn a lower profit margin.
  • Taxable Bonds: In comparison to something like a municipal bond, we might also receive less money with such a subject to tax contract even however we are accruing a higher rate of return.

<u>Yield Comparison </u>

  • Tax-Exempt Bonds: The proportion of tax deductible-equivalent production will always be lower than that of the subject to tax production.
  • Taxable Bonds: The portion of taxable-equivalent production would always be significantly greater than that of the exempt yield. It's indeed attributable to the deduction of residential mortgage taxes.

2...

  • The description prepaid benefit applies to any payment received in conjunction with and therefore is specifically due to, a debt that lasts past every end of the following term in which that payment is obtained. We implement the accounting method of the accounts under managerial statements.
  • Incorporation throughout Gross Income gets to decide underneath the accrual ability to earn instead of just receiving the products. Payment method income taxpayers cause prosecutorial misunderstanding over all the natural environment of revenue recognition.
  • The simplification of most courts assumes that revenue may accrue before or on before receipt but have never during the. Extra cash collected to proceed with productivity is therefore taxable instead of receiving.
You might be interested in
Happinessistheroad Corp. has the following information available regarding its labor: Managers expected to pay $11 per direct la
777dan777 [17]

Answer:

The actual labor rate per hour is $12

Explanation:

First and foremost, we need to understand that a direct labor spending variance of $990(unfavorable) means that the firm spent an additional $990 compared to what was expected.

Also, the spending variance is computed as the actual labor rate minus the standard labor rate multiplied by the actual labor hours worked

spending variance=(actual labor rate-standard labor rate)*actual labor hours

spending variance=$990

actual labor rate=unknown=(assume it is X)

standard labor rate=$11

actual labor hours worked=990

$990=(X-$11)*990

$990/990=X-$11

$1=X-$11

X=$1+$11

X=actual labor rate=$12

8 0
2 years ago
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new produc
kherson [118]

Answer:

A. premarket testing.

Explanation:

The pre market testing is when people from a certain business send products to people that are the target of that product to see if they would use it, continue to use it and how much would they be willing to pay for that product, this is done prior to the launch of the product, in order to get to know better the consumer and how they can improve their product, also to see if it is viable to start mass production and launch it into the market, so what Lorraine is doing is premarket testing.

5 0
3 years ago
First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest
stiv31 [10]

Answer:

You will have $10,306 more

Explanation:

In this question, we are asked to calculate the difference in the amount of money we will earn if the same deposit amount is made in two different banks with different interest payment scheme

Firstly, Calculate the amount in the account as follows:

Future value = Interest + Amount = (Am ount x Period x Rate) + Amount = ($54,000 x 10 x 6%) + $54, 000 = $32,400 + $54,000 = $86,400

Therefore, the future value is

$86,400

Now, we calculate the amount by using the compounding as follows:

Future value = Amount x (1+ Rate)^n =

$54,000 * (1+0.06)^10

= $54,000 * 1.791 = $96,706

Therefore, the compound future value is

$96,706

The difference in amount is calculated as follows:

Difference in amount = $96,706 - $86,400 = $10,306

5 0
3 years ago
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three wareho
miskamm [114]

Answer:

Correct option is C.

15492 is the average ware-house inventory level.

Explanation:

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels.

Average warehouse inventory levels =4000*5*(3/5)0.5 =15492

3 0
3 years ago
Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
zmey [24]

Answer:

Market price: 28.90

Explanation:

We will calculate the stock price using the gordon dividend grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

D1 = 1.25

grow = g = 6% = 6/100 = 0.06

return= for the return, based on the information give, we will calculate it using the CAPM model:

Ke= r_f + \beta (r_m-r_f)  

risk free = 0.04

premium market=(market rate - risk free)= 0.055

beta(non diversifiable risk)= 1.15    

Ke= 0.04 + 1.15 (0.055)  

Ke =cost of capital = return in the dividend grow formula = 0.10325  

Now, we calculate the stock price:

\frac{1.25}{0.10325-0.04} = Intrinsic \: Value

Stock: 28.9017341

Market price: 28.90

8 0
3 years ago
Other questions:
  • Zeus wanted to convey Mount Olympus to Artemis, Ares, Aphrodite, and Athena in equal shares. On July 1, he saw Artemis, Aphrodit
    14·1 answer
  • Sage Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In
    9·1 answer
  • Does 3d rendering boost the sales ?
    6·1 answer
  • Match the terms with their descriptions. Customer Inquiry Quotation Customer Purchase Order A. An agreement to purchase the stat
    7·1 answer
  • Richards Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. It had 50,000 shares of co
    12·1 answer
  • True or false? Affinity Audiences allows advertisers to reach people who’re actively researching and intending to buy the produc
    14·1 answer
  • Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.
    15·1 answer
  • Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents Which cou
    6·2 answers
  • suppose that due to unfavorable growing conditions, this year’s global coffee crop was unusually small. what can we assume about
    14·1 answer
  • What two-word term describes when employees have online access to information about hr issues?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!