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trapecia [35]
3 years ago
12

Tim loaned a friend $4,000 to buy a used car. In the current year, Tim’s friend declares bankruptcy and the debt is considered t

otally worthless (or a bad debt(. What amount may Tim deduct on his individual income tax return for the current year as a result of the worthless debt, assuming he has no other capital gains or losses for the year? a. $4,000 ordinary loss (OL) b. $4,000 short-term capital loss (STCL) c. $2,000 short-term capital loss (STCL) d. $3,000 ordinary loss (OL) e. $3,000 short-term capital loss (STCL)
Business
1 answer:
julsineya [31]3 years ago
5 0

Answer:

e. $3,000 short-term capital loss (STCL)

Explanation:

From the given information;

Tim may deduct only $3,000 short-term capital loss (STCL) because the loan is not business-related. SO, he can claim a maximum of $3000 in the current year and the remaining can be forwarded to ordinary income on the individual return in any one tax year.

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A firm has experienced a constant annual rate of dividend growth of 7 percent on its common stock and expects the dividend per s
Sveta_85 [38]

Answer:

The value of the firm's common stock is $48

Explanation:

The constant dividend growth model is used to determine the market value of the share and which can be expressed as:

P = \dfrac{D}{r-g}

here;

the value of the current market price of the share (P) = unknown?

The dividend expected in the next year (D) = $2.40

The required rate of return (r) = 12% = 0.12

The growth rate (g) = 7& = 0.07

Replacing the values into the above equation:

P = \dfrac{2.40}{0.12-0.07}

P = \dfrac{2.40}{0.05}

P = $48

3 0
3 years ago
A worker can choose high (H) or low (L) effort. If the worker chooses high effort, she incurs a personal cost of 1. In this case
Nitella [24]

Answer:

B. No, because for any bonus offered, the worker will claim to have exerted high effort.

Explanation:

This question required some basic reasoning about how human beings function. We all like to receive things from others, and if they are free (or without cost or effort) the more we like them. And we all believe that good things should happen to us and that we are entitled to receive good things. That is the basic reason why jealousy and envy exist.

Now, back to our case. If the company simply hands out bonuses to everyone regardless of their personal effort, every single worker will be convinced that they really deserve the bonus. Even if the worker didn't even try to do his best or didn't do anything right at all, he/she will be convinced that they deserve the bonus. Each and every single worker will claim that the reason they are receiving the bonus is due to their work. Everyone will say that they worked hard and their work was good.

Imagine this happened at school. One day, the teacher decides to give As to half the class in alphabetical order (or any other random way). The half that got the As will believe that they deserved the As while the other half will be very unhappy. If everyone got As, then everyone will be convinced that thy got As because they deserved them.

5 0
3 years ago
Accoridng to a 2010 harvard business school study, some product sales can increase by what percent as a result of celebrity endo
lina2011 [118]

According to a 2010 Harvard business school study, some product sales can increase by 20% as a result of celebrity endorsements.

<h3>What do you mean by business?</h3>

Business refers to the activity of making money by producing or selling or buying goods and services.

As per a 2010 Harvard business school study, some product sales can increase by 20% as a result of celebrity endorsements.

Learn more about business here:

brainly.com/question/8119526

#SPJ4

5 0
2 years ago
Why price<br> and quantity increase with an increse in demand
Lana71 [14]

Price increase because the supply is low but the demand is more

8 0
3 years ago
Diego purchased a new black jacket through Amazon. When it arrived, he was disappointed when he opened up the package to discove
timama [110]

Answer:

The correct answer is letter "A": cognitive dissonance.

Explanation:

Social psychologist Leon Festinger (1919-1989) described cognitive dissonance as the situation in which individuals feel discomfort as the result of unmatched expectations and the events that took place. According to Festinger, individuals constantly look for consistency to confirm their beliefs are true. Besides, people tend to avoid inconsistency because they lead to disharmony.

6 0
4 years ago
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