Answer:
Explanation:
In 1985, winner's prize money = $170
in 2007 winner's cheque = $ 1,173,000
percentage increase per year:
170 * ( 1 + r)^n = 1173000
(1+r)^112 = 6900
r = 8.212%
b) If the winner's prize increases at the same rate, amount will it be in 2040
= $170 * (1+8.212%)^145 = $15,863,002
Answer:
Explanation:
A swap transaction in the inter bank market is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. The purchase and sale are with the same counterpart. A swap may be considered a technique for borrowing another currency on a fully collateralize basis.
This is an example of a moral hazard. This is a condition
in which one party gets convoluted in a dangerous occurrence knowing that it is
sheltered in contradiction of the risk and the other party will suffer the
cost. It arises when mutually the parties have imperfect information about each
other.
Answer:
Income tax expense is $8,250. It is recorded by debiting Income tax expense by $8,250 and crediting Income tax payable by $8,250.
Explanation:
The income tax rate is 25%. Income tax is calculated on the taxable income after all other adjustments have been made.
Note that the question gives an income figure of $33,000. This is stated as the <em>income after the preceding adjustments but before income taxes.</em> Hence, this is the amount on which we calculate the income tax expense as follows.
Income tax expense = Taxable income x Income tax rate
= $33,000 x 0.25
= $8,250
The next requirement is to record the income tax expense in the journal. This income tax has not yet been paid by the company. Therefore, an income tax payable liability is created. The journal entry is as follows.
Debit: Income tax expense $8,250
Credit: Income tax payable $8,250
Answer:
The correct answer is letter "D": Cindy can claim Mark as a dependent and she can file as head of household.
Explanation:
Dependents are people taxpayers entitles as such to claim exemptions in a tax return. Dependents can be "qualifying child" or "qualifying relative". In the case of qualifying relatives, the dependent must meet the <em>Dependent Taxpayer Test, Joint Return Test, Citizen or Resident Test, Member of Household or Relationship Test, Gross Income Test, </em>and <em>Support Test</em>. The dependent exemption for 2017 is $4,050. Thus, Mark can be considered as Cindy's dependent because they lived in the same household during the same year with nobody else even if he is not working and he is not disabled.
For taxing purposes, being head of household implies p<em>aying more than half of the housing expenses, not being married for the past year, </em>and<em> having a qualifying dependent</em>. Then, as Cindy provided all the support of her household, has not married recently, and has Mark as her dependent, she can be considered the head of the household.