The largest expenditure component of gdp is:

Riley operates a plumbing business, and this year the three-year-old van he used in the business was destroyed in a traffic acci

Mnenie [13.5K]

Answer:

$4,600

Explanation:

Data provided in the question:

Purchasing cost of the van = $20,000

Adjusted basis = $5,800

Worth of the van at the time of accident = $6,000

Insurance reimbursement = $1,200

Now,

The amount of Riley's casualty loss deduction will be

= Adjusted basis - insurance reimbursement

or

Amount of Riley's casualty loss deduction = $5,800 - $1,200

or

Amount of Riley's casualty loss deduction = $4,600

3 0

3 years ago

Check the correct category for each of the following items. Note: for purposes of this exercise, consider cash in and out for th

liraira [26]

Answer:

1. The correct category for each of the following items:

Cash In/Income:

Personal income

Business Income

Cash Out/Expense:

Cost of business trip = variable

State tax liability = fixed

Clothing purchases = variable

2. For example, your mortgage would be considered a fixed expense, because the total amount does not vary. Conversely, grocery bills would be considered variable, because the actual amount is not fixed but varies.

Explanation:

Variable cost or expense has a fixed cost per unit, with the total amount varying, depending on the units or quantities consumed. Fixed cost does have a fixed total amount within the relevant range, but the cost per unit varies.

7 0

3 years ago

A supplier has contracted to deliver halloween costumes to a party supply store by october 15th. however, due to a natural disas

olga nikolaevna [1]

I think you would have to do math to find the answer\

3 0

2 years ago

Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1

Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

$\frac{57,000*(1 - 0.23)}{0.13}$

= $\frac{57,000*0.77}{0.13}$

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.30}$

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.1}$

= $438,461.54

5 0

2 years ago

Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 12years Yearl

Vlada [557]

Answer:

$339,600

Explanation:

The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 60,000.00

time 12

rate 0.14

$60000 \times \frac{1-(1+0.14)^{-12} }{0.14} = PV\\$

PV $339,617.5275

<em><u>From the given option:</u></em>

$ 339,600 is the closest option.

7 0

2 years ago