Answer:
Store of wealth
Explanation:
Store of wealth means that money retains it value and purchasing power over time. Thus, it can be stored or kept away and used sometime in the future without money losing its value.
Other functions of money are :
1. Medium of exchange: money can be used to exchange for goods and services in transactions.
2. Unit of account: money can be used to determine the value of goods and services being exchanged.
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Answer:
a bonus to Niki for financial maneuvers.
Explanation:
A. Specifications
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Answer:
Option-2 is best alternative
Explanation:
Option-1
Present value of lumpsum amount -1160000
Option-2
Annual paymentt for 10 yrs -94000
Annuity for 10 yrs at 8% 6.7101
Present value of outflowws -630749
Add: Initial amount paid -461000
Present value of outflowws -1091749
Option-3
Annual paymentt for 9 yrs -156000
Annuity for 10 yrs at 8% 6.24689
Present value of outflowws -974515
Add: Initial amount paid -156000
Present value of outflowws -1130515
Option-4
Amount paid after 5 yrs -1730000
PVF at 5 yrs at 8% 0.680583
Present value -1177409
Option-2 is best alternative
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
