Answer:
d. If Tonya itemized her deductions in 2017 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2018 under the tax benefit rule.
Explanation:
Tonya is a cash basis taxpayer. In 2017, she paid state income taxes of $8,000. In early 2018, she filed her 2017 state income tax return and received a $900 refund. If Tonya itemized her deductions in 2017 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2018 under the tax benefit rule.
Answer:
a. Cash freed up by cash management:
= Amount received * speed increased by + Amount disbursed by speed reduced by
= 2,550,000 * 2 days + 1,110,000 * 1/2 days
= 5,100,000 + 555,000
= $5,655,000
b. Interest on freed up cash:
= 5,655,000 * 7%
= $395,850
c.<u> No.</u> It is less than the income earned from interest from freed up cash so it should not be implemented as it brings no additional benefit.
Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.