Answer:
Option (D) is correct.
Explanation:
Given that,
Rate on a 1-year bond, now = 6%
Expected rate on a 1-year bond, one year from now = 7%
Expected rate on a 1-year bond, two years from now = 8%
Maturity risk premium = 0
Therefore, the interest rate today on a 3-year bond should be approximately:
= (Rate on a 1 year bond, now + Rate on a 1 year bond, one year from now + Rate on a 1 year bond, two years from now) ÷ Number of years
= (6% + 7% + 8%) ÷ 3
= 21% ÷ 3
= 7%
Answer:
If you only pay the minimum each month, your debt might become spread out over a longer period of time and interest charges may increase over time. This is not an effective strategy, and depending on the provider, you may end up paying more that what you needed to pay off.
Explanation:
Hope this helped!
Answer:
correct option is a. No impairment should be reported
Explanation:
given data
carrying amount = $1,600,000
net cash flows = $1,630,000
fair value = $1,360,000
to find out
amount report as an impairment to its equipment
solution
we know that here impairment loss is carrying amount - higher of fair market value and value in use ..................1
here recoverable value is = $1630000
so
impairment loss is = $1600000 - $1630000
impairment loss = - $30000
here loss is negative
so that correct option is a. No impairment should be reported
False !! it will be low in low season !!
Answer:
(b) selecting and training new hires at the firm
Explanation:
Circular 230 requirement states that a practitioner must exercise due diligence in respect of those matters which relate to preparing, approving and filing tax returns or any other paper to Internal Revenue Services(IRS).
Due Diligence basically means to ensure that actions and information supplied are correct and not false.
So basically it extends to oral or written representations made to IRS or to a client in respect of matter which are administered by IRS.
Selecting and training new hires at the firm does not relate to IRS.
