The reasons to study economics include which of the following?

Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine

natulia [17]

Answer:

a) Clem can deduct the $1,005 that he spent on tools and supplies. If they file their taxes jointly, they can also deduct the $4,570 spent on health insurance.

b) Both utilities and depreciation are deductible from their rental income = $1,750 + $1,225 = $2,975

c) The employer portion of self-employment taxes is deductible = $7,600. Wanda's social security payments are not deductible.

d) This a personal expense and it is not deductible.

7 0

3 years ago

To maintain public confidence and trust in the financial reporting of companies is the purpose of

irakobra [83]

Answer:

The answer is: the Sarbanes-Oxley Act of 2002

Explanation:

The Sarbanes-Oxley Act (SOX) was elaborated in response to several high profile corporate scandals involving multinational corporations. The most infamous scandal involved Enron Corporation and Arthur Andersen LLP (one of the five largest accounting corporations in the world).

The SOX set new requirements for all publicly traded corporations (especially their upper management) an public accounting firms. Only some parts of the SOX apply to private companies.

8 0

3 years ago

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Vesna [10]

Answer:

Productivity

Explanation:

Productivity refers to the units of a commodity produced by a worker from the resources used to produced these commodities. Productivity refers to the variable which indicates or explain the variations in the living standards of the different countries. It is evident from the fact that different nation have different level of living standards, this is all because of the different level of productivity.

There are certain determinants of the productivity as follows:

(i) Human capital per labor

(ii) Natural resources per labor

(iii) Physical capital per labor

4 0

4 years ago

A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Ca

Katarina [22]

Answer:

$918.89

Explanation:

For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,

Future value = $1,000

Rate of interest = 8% ÷ 2 = 4%

NPER = 5 years × 2 = 10 years

PMT = $1,000 × 6% ÷ 2 = $30

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the current price of the bond is $918.89

7 0

3 years ago

Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in Sto

olasank [31]

Answer:

The correct option is e. 11.86 percent.

Explanation:

Note: The data in this question are merged together and they are therefore sorted before answering the question. See the attached pdf for the full question with the sorted data.

The standard deviation of the returns on a portfolio can now be calculated using the following steps:

Step 1: Calculation of expected returns under each state of the economy

This can be calculated using the following formula:

Expected return under a state of the economy = (Percentage invested in Stock A * Return of Stock A under the state of the economy) + (Percentage invested in Stock B * Return of Stock B under the state of the economy) + (Percentage invested in Stock C * Return of Stock C under the state of the economy) …………… (1)

Substituting the relevant values into equation (1), we have:

Expected return under Normal = (40% * 14.3%) + (35% * 16.7%) + (25% * 18.2%) = 0.16115

Expected return under Recession = (40% * (-9.8%)) + (35% * 5.4%) + (25% * (-26.9%)) = -0.08755

Step 2: Calculation of expected return of the portfolio

This can be calculated using the following formula:

Portfolio expected return = (Probability of Normal Occurring * Expected Return under Normal) + (Probability of Recession Occurring * Expected Return under Recession) …………………. (2)

Substituting the relevant values into equation (2), we have:

Portfolio expected return = (0.65 * 0.16115) + (0.35 * (-0.08755)) = 0.074105

Step 3: Calculation of the variance of the returns on the portfolio

This can be calculated using the following formula:

Variance of the portfolio = (Probability of Normal Occurring * (Expected Return under Normal - Portfolio expected return)^2) + (Probability of Recession Occurring * (Expected Return under Recession - Portfolio expected return)^2) …………………….. (3)

Substituting the relevant values into equation (3), we have:

Variance of the portfolio = (0.65 * (0.16115 - 0.074105)^2) + (0.35 * (-0.08755 - 0.074105)^2) = 0.014071259475

Step 4: Calculation of the standard deviation of the returns on the portfolio

This can be calculated using the following formula:

Standard deviation of the portfolio = Variance of the portfolio^0.5 ............. (4)

Substituting the variance of the portfolio obtained in step 3 into equation (4), we have:

Standard deviation of the portfolio = 0.014071259475^0.5 = 0.118622339696197, or 11.8622339696197%

Rounding to 2 decimal places, we have:

Standard deviation of the portfolio = 11.86%

This implies the standard deviation of the returns on the portfolio is 11.86%.

Therefore, the correct option is e. 11.86 percent.

Download pdf

3 0

3 years ago