Answer:
a. Capitalized : Equipment
b. Expensed
c. Capitalized : Building
d. Expensed
e. Capitalized : Equipment
f. Capitalized : Building
g. Capitalized : Building
h. Capitalized : Equipment
Explanation:
The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.
The costs exclude amounts collected in tax on behalf of third parties
Also not Capital expenditures increase the earning ability of the asset whilst revenue expenditure is the maintenance of such asset.
The government would set its targeted interest at 6.5%
Based on the Taylor's rule
R = π + A + 0.5(A-A*) + 0.5
This is the formula that helps to get the output gap
<u>Definition of terms</u>
R is the nominal federal funds rate
π is the real rate of federal funds = 2%
A is the rate of inflation
A* is the target of of inflation = 2%
Rate of unemployment = 3%
The government has a target of full employment that is at 4 percent.
When we enter the values into the formula
R = 2% + 3% + 0.5(3%-2%) + 0.5%(2%)
= 5% + 0.5% + 1%
= 6.5%
Therefore the government would set its targeted interest at 6.5%
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Answer:
Amount for each stock to be paid at maximum = $54
Explanation:
Using Dividend growth model, we have,
Where 
= Expected price of share today
= Dividend to be paid at this year end
= 
= Required return on investment
g = Growth rate
Therefore,
= = $3 + 8% = $3.24
= $54
Therefore, current price for this share or sock to be paid = $54 per share.
Answer:
Explanation:
The main argument in favor regarding increasing minimum wage is that a higher wage will result into an increase in the standard of living of the people. Furthermore, a rise in the minimum wage can help in lifting people out I poverty. Due to higher wages and salaries, workers will have more money to cater for their families and meet their needs. Lastly, an increase in the minimum wage means that the government can reduce its expenditures on helping the low income earners and can therefore invest the money in other critical sectors of the economy.
The arguments against raising the minimum wage is that it can lead to inflation. Inflation in the rise in the price for goods and services. When there's an increase in minimum wage, sellers may increase the price of goods as there'll be more money to spend by households. Also, it can lead to losses of jobs as employersay have to cut down cost on order to be able to increase the wages of some workers and thereby may result in some workers being laid off.
Minimum wages lead to the reduction in the entry-level jobs that are available, and reduces the change of entry level graduates to get training, and lifetime income. According to Economists, minimum wages will result into decrease in the employment opportunities that are available for the youths and thereby create unemployment. Potential employees will miss out on the training that should have been done at the initial stage one is entering an organization.
Answer:
Income Tax is referred to as the amount of money an individual is required to report and remit to the tax agencies for earning revenues. Also, it is the federal government's share from the individual's earnings which would be used for their public works projects such as building railways and sewage treatment.
The following amounts are taxable and not.
a. Salary, $44,000 (Yes
)
b. Dividends received, $600 (Yes
)
c. Share of partnership income, $4,000 (Yes)
d. Partnership distribution in the current year, $1,000 (No)
e. Partnership distribution in the following year, $600 (No)
f. State lottery winnings of $2,000 (Yes)
