Answer:
In the year 2020 --- Not taxable Hence -Nil
In the year 2050----Taxable. Hence $5000
Explanation:
Assumed that the tax payer purchased the annuity from Tax paid Income'.
In this case the tax payers income of $5000 is partly taxable . That is the percentage of the payment that's considered a return on your initial investment will not be taxable. the rest, which is your gain on the investment, will be taxed. In this case for the first twenty years($100000/$5000) =20 years will not be taxable. Hence
In the year 2020 --- Not taxable Hence -Nil
In the year 2050----Taxable. Hence $5000
Answer:
B. FALSE
Explanation:
This economy is currently at its natural rate of unemployment because there is <u>no cyclical unemployment</u>
In macroeconomics, <u>full employment is the level of employment rates where there is no cyclical or deficient-demand unemployment. </u>
<u>The economy is considered to be at full employment when the actual unemployment rate is equal to the natural rate</u>.
Hence, it is false to allege that the economy in the given scenario is not currently at its natural rate of unemployment
Answer: c) between Qa and Qb
Explanation:
From the exhibit, the lowest cost will be recorded when output is between Qa and Qb because these points represent the lowest costs per unit for Curves A and C and the lowest points where output can be produced. Output being produced at costs lower than this is therefore the lowest for the medium plant.
Answer: D. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate
Explanation: For this scenario, the only true option is that, the auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.
Attributed sampling states that items being sampled will either or won't possess certain attributes or quantities.
Answer:
The value of the option to wait is $0.70,option A.
Explanation:
In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.
Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.
The formula used in the calculating present value is PV=FV(1+r)^n
Where PV=present value
FV=future value
r=rate of interest
n=number of year
Find attached spreadsheet for detailed calculations.
