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gayaneshka [121]
3 years ago
13

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% i

nstallment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?
Business
1 answer:
AlexFokin [52]3 years ago
5 0

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

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Answer:

The amount that people and businesses choose to hold.

Explanation:

The amount that people and businesses choose to hold.

The total demand for money is the total amount of money that people wants to hold and there are three main reasons for which money is being held. First is transactions related reason, second is the precautionary reason, and third is the speculative reason. The above three reasons push the people to hold the money that becomes the total demand for money.

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Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable
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Answer: $92,880

Explanation:

The Gross Profit can be calculated by simply removing the cost from the sales amount.

It is stated that the additional processing will yield 10,000 bags of Premium Green and 3,600 bags of Green Deluxe, which can be sold for $7.55 and $5.55 per bag.

Sales figure is therefore,

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= 95,480 - 2,600

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The apartment house had a communal attic rarely visited by its tenants. the labeled boxes and cast-off furniture offered little
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Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15
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Answer:

the actual direct deposit payroll is $12,843

Explanation:

The computation of the actual direct deposit payroll is shown below;

= Total salary - withholdings

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Basically we applied the above formula

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