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Elodia [21]
2 years ago
7

Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proc

eeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year
Business
1 answer:
Naily [24]2 years ago
3 0

Answer:

the maximum amount is $3,150

Explanation:

The computation of the maximum amount that could be used as an interest expenses while calculating the item deductions for the present year is shown below:

Here we considered only the home mortgage interest i.e. qualified i.e. $3,500

The other things would not be considered like interest on automobile loan, interest on bank loan etc as it is not allowed

Therefore the maximum amount is $3,150

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Kate's Diner offers one breakfast item, a breakfast special. The market price for this meal is $5. At her profit-maximizing leve
bazaltina [42]

Answer:

keep producing in the short run but exit the industry or go out of business in the long run

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.

A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run

6 0
3 years ago
What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where
Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0
3 years ago
All of the following are factors that may complicate capital investment analysis except a.sunk costs b.changes in price levels c
alexira [117]

Answer:

a. sunk costs.

Explanation:

Sunk cost is the amount which is already invested or incurred before any project is initiated. This cost is permanently lost and cannot be recovered. The business managers avoid incorporating sunk cost in decision making process.

The correct answer is sunk cost because it doesn't complicate capital investment analysis. These costs are not considered when making business decisions or analysis of capital investments.

5 0
3 years ago
Read 2 more answers
Lewis is a business manager for micro manufacturing company. ethical dilemmas that lewis is not likely to encounter include deci
Dmitry_Shevchenko [17]
Since Lewis is a Micro Manufacturing Company business manager, the ethical dilemmas that he is not likely to encounter is the decision in t<span>he kind of pizza to order for a company meeting. This is not part of his job as a business manager. Rather, he covers issues regarding profits, employees, workplace and stock prices.</span>
7 0
3 years ago
At UPS, a 12-step process prescribes how drivers should park their trucks, locate the package they are about to deliver, and ste
Alla [95]

Answer:

Programmed decision making

Explanation:

A programmed decision is one that is done by following already laid down rules and procedures. They are Carried out using formal patterns and the goals here are both clear and specific. These rules and routines in UPS are are a good example of how programmed decisions are done. As it can be seen on every aspect of their day to day business activities.

8 0
3 years ago
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