The housewives reality show from the fans’ viewpoint is an
example of reference group. The reference group is a type of group or could be
an individual in which this is being compared to another party in which the
reality show is being compared as each members are shown and ranked according
to their popularity.
Answer:
It increases the opportunity cost because you are foregoing more money for college.
Explanation:
Opportunity cost is the benefit profit, or value of something that is missed or given up when an individual chooses one alternative over another.
The 10% rise in salary offered by the branch manager increases the opportunity cost of going to college. This is because the higher cost (money) you could have earned by not going to college is foregone.
Answer:
His American Opportunity tax credit is $2,500.
Explanation:
A taxpayer who has a modified adjusted gross income of $80,000 or less can claim the credit for the qualified expenses of an eligible student.
Taxpayers will receive a tax credit based on 100% of the first $2,000, plus 25% of the next $2,000 that is paid during the taxable year for tuition, fees and course materials and also, 40% of the credit (up to $1,000) is refundable.
Therefore, His American Opportunity tax credit is $2,500.
Answer: $73.33
Explanation:
Dividend discount model can be used to calculate the value of the shares:
= Earnings paid out / (Cost of equity - growth rate)
Earnings to be paid out:
= 60% * 5,500,000
= $3,300,000
Value of shares:
= 3,300,000 / ( 9% - 6%)
= $110,000,000
Share price:
= Value of shares / Number of shares outstanding
= 110,000,000 / 1,500,000
= $73.33
Answer:
a.$30,000
b.The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Explanation:
a. Calculation of what is Shawn’s realized gain or loss and the basis of the apartment building
Since Shawn tend to received the apartment building which has a Fair Market Value of $320,000 in exchange of his $350,000 worth of factory , this means he had a lost of $30,000 which is calculated as ($320,000-$350,000) which can therefore be deferred
b. The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
