Answer:
The answer is A
Explanation:
The loan is an interest only loan since he is only paying the interest potion of 7%
Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount
Answer:
Correct option is (c)
Explanation:
Progressive tax rate depends upon the income of the individual. In other words, progressive tax rate increases as income increases. So, higher income group have to pay more taxes as compared to lower income group.
Proportion of tax collected from high income group is more in case of progressive tax rates. In this case, Blade's tax rate is 10% that is 5,000/50,000 and Caden's tax rate is 12% that is 12,000/100,000.
So, tax rate is higher for Caden as compared to rate applicable on Blade's income.
Answer:
Annual depreciation= $197,000
Explanation:
Giving the following information:
Purchasing price= $1,040,000
Residual value= $55,000
Useful life in years= 5
<u>Under the straight-line method, the annual depreciation is the same during the useful life of the machine. To calculate the annual depreciation, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,040,000 - 55,000)/5= $197,000
Answer:
D
Explanation:
D because you have to keep up with demand
Answer:
$5.5= actual price
Explanation:
Giving the following information:
Managers expected to pay $5 per kilogram.
Each unit produced should take 2 kilograms; actual total usage was 2,100 kilograms.
The company produced 950 units.
The direct materials spending variance is $1,050 (unfavorable).
To calculate the actual price per kilogram, we need to use the direct material spending variance.
Direct material price variance= (standard price - actual price)*actual quantity
-1,050= (5 - actual price)*2,100
-0.5= 5 - actual price
5.5= actual price
