Answer:
The theory of comparative advantage says that nations should yield and trade only those merchandises in which they have a reasonable advantage i.e. which they are specialize in.
To compute the comparative advantage of two nations A and B, let us first compute the opportunity cost of making movies and vehicles in each.
Country A:
Opportunity cost of making 1 automobile = 2 movies
Opportunity cost of making 1 movie = 1/2 automobile
Country B:
Opportunity cost of making 1 automobile = 8/5 movies
Opportunity cost of making 1 movie= 5/8 automobile
Since the prospect cost of making an automobile is lesser in Country B and the prospect cost of making movies is lesser in country A, thus Country A would make movies and country B would make automobiles.
<span>A tip shortfall from a directly tipped employee should be recorded on form 8027. This form should be filed with the Internal Revenue Service (IRS) in order to account for allocated tips. This informs the IRS of tips that were unaccounted for to the server as being less than the expected (and set) percentage.</span>
Answer:
499.80
Explanation:
There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.
Mikey's long term capital gain = $4,950 - $2,400 = $2,550
if he paid regular income taxes = $2,550 x 39.6% = $1,009.80
since he pays capital gains taxes = $2,550 x 20% = $510
That means he saves $1,009.80 - $510 = 499.80
Answer:
200 shares
Explanation:
As per the family attribution rule Rule 318 the person is owner of his or her shares and deemed owner of the shares that their parent posseses. This means that Maria is treated as an owner of 100 shares she actually owns and the 100 shares that her mother owns, totalling it to 200 shares. The number of shares that her sister or grandmother owns is not included in the ownership as it is not as per the family attribution rule.
Answer and Explanation:
The computation of the price that should be sell is shown below:
As we know that
Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)
a. The price is
= $3 × 1.05 ÷ (15% - 5%)
= $31.50
b. Now the price is
= $3 × 1.05 ÷ (12% - 5%)
= $45
Hence, the above represent the answer in both the cases.
