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2 years ago

8

Keisler's has cost of goods sold of $11,518, interest expense of $315, dividends of $420, depreciation of $811, and a change in

retained earnings of $296. What is the taxable income given a tax rate of 21 percent

1 answer:

True [87]2 years ago

6 0

Solving: 420+296 = 716
716/(1-.21) = 906.33

Answer: $906.33

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Can someone sell a car that is not registered to their name

postnew [5]

No. Someone can not sell a car legally if it is not registered to their name.

5 0

3 years ago

On July 1, 20x1, Fox Co. purchased as a held-to-maturity investment $5,000,000 of Owl, Inc.'s 8% bonds for $4,580,000, including

Dimas [21]

Answer:

The amount fox should report on Dec 31,20x1 = $4,556,500

Explanation:

The carrying amount of bonds = $4,580,000 - $50,000

The carrying amount of bonds = $4,530,000

Amortization of discount from july 1 to dec 31 (6 months):

Interest Revenue = $4,530,000* 10% * 6/12

Interest Revenue= $226500

Interest Receivable = $5,000,000 * 8% * 6/12

Interest Receivable = $200000

Discount amortized =Interest Revenue - Interest Receivable

Discount amortized = $226500 - $200000

Discount amortized = $26500

So:

The amount fox should report on Dec 31,20x1 = $4,530,000 + $26500

The amount fox should report on Dec 31,20x1 = $4,556,500

4 0

3 years ago

Phil, age 20, is single and can be claimed as a dependent on his parent's return. He had $150 in interest income and wages of $7

Korvikt [17]

Answer: B - $7,150

Explanation: Standard taxation is an option by IRS to reduce an inidvidual taxable income. this is subject to an individuals filling status.

Phil who is aged 20, single and who can claim a dependent on his parents tax filling return. As of 2019, his standard tax deduction is limited to his earned income plus $350.

According to the above question, Phil earns $7,000 as wages plus $150 in interest income.

From the above information, Phil has a standard tax of $7,150.

3 0

3 years ago

A firm has negotiated a seasoned equity offer that will provide the firm with $1.68 million in net proceeds. The underwriting sp

Ivahew [28]

Answer:

The correct answer is $36.27

Explanation:

Amount of net proceeds is $1,680,000. Number of shares to be issued is 5,000. Underwriters charge the spread at 7.35%.

Hence, 100% of the amount should cover $1,680,000 and the underwriter charges. Hence, the total amount required to be raised is more than $1,680,000.

Step 1: Calculate the amount to be raised.

Amount Needed = Amount to be raised by selling shares x (1 - Underwriters' Charge)

1,680,000 = Amount to be raised by selling shares x (1 – 0.0735)

1,680,000 = Amount to be raised by selling shares x 0.9265

Amount to be raised by selling shares = 1,680,000 / 0.9265

Amount to be raised by selling shares = 1,813,275.77

Step 2: Calculate the offer price.

Offer Price = Amount to be raised by selling Equity / Number of shares need to be sold

Offer Price = 1,813,275.77 / 50,000

Offer Price =$36.27

Therefore, the correct answer is $36.27

4 0

3 years ago

Is overshooting (in theory and in practice) consistent with purchasing power parity? Consider the reasons for the usefulness of

Ludmilka [50]

Answer:

1. Yes, overshooting is consistent with PPP. Investors forecast the expected exchange rate based on the theory of PPP. When there is some change in the market, the investors know the exchange rate will change to equate relative prices in the long run. This is why we observe overshooting in the short run. The investors incorporate this information into their short-run forecasts.

2. Exchange rates are volatile in the short run. The theory's implication that there is exchange rate overshooting (in response to permanent shocks) is one explanation for short-run volatility in

exchange rates.

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3 years ago