C <span>Setting the nation’s monetary policy hope that helps</span>
Answer:
D) A multiple contraction of the money supply greater than the amount of the securities sold.
Explanation:
When the fed sells securities in the open market, it obtains dollars, and keeps those dollars from circulating, in other words, in reduces the money supply.
The contraction in the money supply is greater than the amount of securities sold because of the money multiplier.
When the fed sells securities, it reduces the monetary base, which is equal to:
B = C + D
Where:
B = Monetary base
C = Cash in hands of the public
D = Demand deposits
And the money supply is equal to:
M = m x B
Where:
M = money supply
m = money multiplier
B = Monetary base
Because of the money multiplier, any contraction or expansion in the monetary base has a multiplying effect in the money supply.
From the information given, the amount of the projected 2022 loss, if any that Ron May deduct on his income tax return for 2022 is "$14,000" (Option D) See explanation below.
<h3>What is the explanation for the above answer?</h3>
In general, Section 704(d) of the Code states that a partner's distributive share of a partnership loss (including capital loss) is limited to the adjusted basis of such partner's interest in the partnership (outside basis) at the end of the partnership year in which such loss occurred.
If a partner's share of partnership losses exceeds its outside basis in a given taxable year, the losses are permitted to the extent of basis, and any excess amount is carried over to the following taxable year in which the partner has outside basis available.
Learn more about Income Tax Return:
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Full Question:
Ron's investment in his XYZ partnership interest on December 31, 2021, was $12,000. As the result of a serious downturn in business, the partnership calculates Ron's share of the partnership's losses in 2022 will be $14,500. How much of this projected 2020 loss, if any, may Ron deduct on his income tax return for 2022?
A) $12,000
B) $2,500
C) $0
D) $14,000
Answer: $42,400
Explanation:
The family currently spends $40,000 on living expenses.
Inflation is expected to be 6% and as Inflation is used to refer to the general rise in prices, this means that the family will be spending 6% more in one year.
They will therefore be spending;
= 40,000 * (1 + 6%)
= $42,400
Answer:
19.05%
Explanation:
Data provided in the question:
Lumber Revenues = $120,000
Hardware Revenues = $90,000
Cost of Sales = $130,000
All other costs and expenses = $35,000
Investment Income = $8,000
Income Tax Expense = $13,000
Net Income = $40,000
Now,
The net profit margin = [( Net income) ÷ (Total revenue ) ] × 100%
or
The net profit margin = [ $40,000 ÷ ( $120,000 + $90,000 ) ] × 100%
or
The net profit margin = [ $40,000 ÷ $210,000 ] × 100%
or
The net profit margin = 0.1905 × 100%
or
The net profit margin = 19.05%
