Answer:
Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).
So Lionel will be able to deduct $1,650 as interest expense (above the line deduction).
Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.
Answer:
Net cash provided by operating activities is $325,000.
Explanation:
Lacey Company
Cash Flow Statement (Operating Activities Only)
December 31, 2022.
<u>Details Amount ($)</u>
Net Income 310,000
Depreciation expense 45,000
Increase in accounts receivable (55,000)
Decrease in inventory 12,000
Increase in accounts payable 6,000
Increase in prepaid expenses (4,000)
Decrease in income taxes payable 3,500
Gain on disposal of land <u> 7,500 </u>
Net cash provided (used) by operating activities <u> 325,000 </u>
D. 16,110
39,000+9,250=48,250
48,250-(850+290)=47,110
47,110-31,000=16,110
Answer:
The value of the project today is $75,866
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Years 1 2 3
Cash Flows $32200 $41800 $22,900
Discount Factor 14% 0.8772 0.7695 0.6750
Present Values $28,245.61 $32,163.74 $15,456.85
Net present value = $75,866.20
Answer:
C. To enforce property rights
Explanation:
Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.
Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .
Government budget is anual financial statement showing economy's expected revenue & expenditure .
Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .
Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .
However all these are progressive legitimate reason for govt. Intervention .
But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.
