Answer:
$1,650,000
Explanation:
Preparation of the lower portion of the 2021 income statement .
2021 Income from continuing operations before income taxes5,800,000
Income tax expense(1,450,000)
($5,800,000 × 25 %)
Income from continuing operations4,350,000
Discontinued operations:
Loss from operations of discontinued component(3,600,000)
Income tax benefit 900,000
(25*3,600,000)
Loss on discontinued operations(2,700,000)
Net income$1,650,000
(4,350,000-2,700,000)
Therefore the the lower portion of the 2021 income statement is $1,650,000
Answer: Company mission
Explanation: The company mission refers to the objectives mentioned in the mission statement of the organisation. It is a short statement which describes why the organisation exists and what are its goals. This statement also states the location of the organisation and other important factors like major customers.
In the given case, Craftmaples has the purpose of traditional handicrafts. Thus, all their operations and activities will move towards this one goal.
Hence from the above we can conclude that this case is an example of mission statement.
Answer:
Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.
Answer:
The effect of negative interest rates on the economy is reflected in option D: negative interest rates simply cannot happen in reality. Answer D is the correct response.
Explanation:
Answer C is partially correct. In reality, experiments are running on economies as today: Greece economy. After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back. This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy: customers will go for profit, not cost.
The effect of this model is negative on the economy since it will not provide enough resources for stimulation. Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.
