The incorrect statement is : The income from the TSA is received income tax-free. Upon retirement, payments received by employees from the accumulated savings in tax-sheltered annuities are treated as ordinary income.
Answer:
The demand for money decreases sharply.
Explanation:
The portfolio choice and Keynes's theory of demand for money both proposes that as the returns expected on money falls, its demand also falls. When there is an increase in interest rate, it leads to a decrease in the expectation placed on returns on money thus leading to a decrease in demand for money.
Answer:
c. $45
Explanation:
Transfer price is the price charged for a product which is transferred to other department/ division / subsidiary of same company / group. The minimum selling price in the absence of any excess capacity is the price available in the market, because the company has demand for the product and it does not lost the sale if transfer not takes place. The product can be sold in the market. So the Transfer price should be $45.
Answer:
$47,200
Explanation:
For computing the budgeted purchase, first we have to determine the purchase unit which is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units are 1,300 units
Ending inventory units = 900 units × 30% = 270 units
Beginning inventory units = 1,300 × 30% = 390 units
Now put these units to the above formula
So, the units would equal to
= 1,300 units + 270 units - 390 units
= 1,180 units
Now the budgeted purchase would be
= 1,180 units × $40
= $47,200
Answer:
$4,250
Explanation:
The computation of the operating income or EBIT is shown below:
Earning before interest and taxes = Sales reported - operating cost other than depreciation - depreciation expense
= $12,500 - $7,250 - $1,000
= $4,250
We simply deduct the operating cost and the depreciation expense from the sales reported to arrive the earning before interest and taxes
All other information which is given in the question is not relevant. hence, ignored it
