Answer:
A failure of the financial sector.
Explanation:
Financial sector indicates all banks and non-banking institutions. These sectors are the source of money supply in an economy. If this sector fails to do such work, the economy might face severe money crisis and the effect would be immediate. An example of it is 2007-08 depression in the US economy.
Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
Answer:
I think maybe B?
Explanation:
I am not sure so I think its b
You enforce the rules, state you did correctly count the amount of money, no exceptions.
Answer:
Accounts Receivable $80,000,
Bad debt losses of 1% of credit sales= 1% * $ 80,000= $ 800
Allowance for Doubtful Accounts $5,000 credit
Bad Debts $ 800 Debit
Allowance for Doubtful Accounts $4,200 credit
Two entries will be required
For recording Bad debts Expense
Bad Debts Expense $ 800 Dr
Allowance for Doubtful Accounts $ 800 credit
Adjusting Entry at year end.
Allowance for Doubtful Accounts $ 800 Debit
Account Receivables $ 800 Credit
