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The value of the investment could be unpredictable when the investment is volatile. To add up, the fluctuation patterns of the value could be a lot different than it should be. It can be observed in a graph that the curve just suddenly rises and falls covering only a smaller amount of time.
Answer:
lower; higher.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).
This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.
Answer:
b. $ 50,000
Explanation:
Investment cost
720000
Book value of net asset
100000
420000
--------------
520000
Excess
200000
Allocated as follows
Land and equipment 50000
overvaluation of bonds payable 40000
Undervaluation of inventory 60000
Total 150000
Un allocated amount
Goodwill 50000
Total 200000
According to liquidity preference theory, there is a rightward shift in the money supply curve when the federal reserve decides to raise the money supply.
Option A is the correct answer.
<h3>What is a federal reserve?</h3>
The federal reserve is the central banking authority in America which was established in the year 1913 under the Federal Reserve Act.
When the federal reserves increase the money supply then the money supply curve moves in the right direction and when the federal reserve decreases the money supply then the money supply moves toward the left. This shows a direct relationship between the federal reserve and the money supply curve.
Therefore, there is a rise in money supply by the Federal reserve causing the money supply curve to shift in the right direction.
Learn more about the rise in money supply in the related link:
brainly.com/question/26000265
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