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3 years ago

One person’s spending becomes another person’s income. This statement is

Business

1 answer:

Paha777 [63]3 years ago

8 0

Answer:

d. the Circular Flow Model

Explanation:

Based on the information provided within the question it can be said that this statement is an example of the Circular Flow Model. This model (like mentioned in the question) illustrates the flow of cash from different people or company's in different industries. Where one person/company pays another, which takes it in as income and uses that to pay another company for what they need and so on.

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Elk, a C corporation, has $370,000 operating income and $290,000 operating expenses during the current year. In addition, Elk ha

pychu [463]

Answer:

$80,000

Explanation:

Calculation to determine what Elk's taxable income is:

Using this formula

Taxable income=Operating income-Operating expenses

Let plug in the formula

Taxable income=$370,000-$290,000

Taxable income=$80,000

Therefore Elk's taxable income is:$80,000

4 0

3 years ago

How much money does a therapyst make an hour/ and how much would they make in a year

enot [183]

An hour = the average hourly pay for a Therapist in the United States is $28.33 an hour. While ZipRecruiter is seeing hourly wages as high as $52.40 and as low as $12.74, the majority of Therapist wages currently range between $20.91 (25th percentile) to $31.01 (75th percentile) across the United States.

a year = the median annual salary for clinical, counseling, and school psychologists was $85,340 per year, according to the Bureau of Labor Statistics. The lowest 10 percent of workers earned less than $44,040, and the highest 10 percent earned more than $129,310.

3 0

3 years ago

Read 2 more answers

Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i

MariettaO [177]

Answer:

$787,471.02

Explanation:

Given:

Jim's annual income = $180,000

Monthly property taxes = $140

Monthly homeowners insurance = $70

Monthly student loan payments = $178

Maximum front end DTI limit = 28%

Maximum back end DTI limit = 36%

Amortizing period = 30 years = 360 months

annual rate = 4.5% compounded monthly

Now,

Monthly salary = $\frac{\textup{Annual income}}{\textup{12 months}}$

Monthly salary = $\frac{\textup{180,000}}{\textup{12 months}}$

Monthly salary = $15,000

Maximum front end DTI limit

= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income

0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70

Maximum Monthly loan payment = $4,200 - $140 - $70

= $3,990

and,

Maximum back end DTI limit =

0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178

Maximum Monthly loan payment = $5,400 - $140 - $70 - $178

= $5,012

Now,

The monthly payment = minimum of [ $3990, $5012 ]

therefore,

The monthly payment = $3,990

Thus,

The maximum amount of loan = Monthly payment × $[\frac{(1-(1+\frac{r}{k})^{-kn})}{(\frac{r}{k})}]$

here,

k = 12 when compounded monthly

n = 30 years

r = 4.5% = 0.045

The maximum amount of loan = $3,990 × $[\frac{(1-(1+\frac{0.045}{12})^{-12\times30})}{(\frac{0.045}{12})}]$

The maximum amount of loan = $787,471.02

8 0

3 years ago

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in use

alexgriva [62]

Answer:

Depreciation

Explanation:

Depreciation is the systematic allocation of estimated cost to an asset. Methods include straight line, sum of the year digits, double declining etc. The entries for recognizing this cost are;

Debit depreciation expense

Credit Accumulated depreciation

Hence to account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called depreciation.

6 0

3 years ago

Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond

almond37 [142]

Answer:

bonds payable 1,000,000 debit

loss on redemption 20,000 debit

discount on bonds 10,000 credit

cash 1,010,000 credit

--to record tyhe call of the bonds on September 30th--

Explanation:

par value of the bonds: 1,000,000

call premium: <u> 10,000</u>

total cash disbusements: 1,010,000

carrying value 990,000

loss on redemption 20,000

<u>Notice: </u>It is a loss as we are paying more than the aliability is worth

discount/premium:

face value 1,000,000

carrying value 990,000

discount 10,000

We write off the bonds account: bond payable and bon discount

we debit the loss and credit hthe cash disbursments

8 0

3 years ago