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Gennadij [26K]
3 years ago
7

From 2015 to 2016, the overall price level rose from 200 to 220. Over the same period, tuition rates at the local community coll

ege rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation. EXPLAIN your answer.a) Tuition rates increased at the same rate as inflation
b) Tuition rates increased at a slower pace than inflation
c) Tuition rates increased at a faster pace than inflation
d) Tuition rates and inflation cannot be compared with the numbers given
Business
1 answer:
Nikolay [14]3 years ago
3 0

Answer:

C

Explanation:

Inflation is a persistent rise in general price level

Rise in Inflation rate = 220 / 200 - 1 = 10%

Rise in tuition fees = 115 / 100 - 1 = 15%

From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate

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Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000
qaws [65]

Answer: $12717

Explanation:

1. The amount of FICA and/or self-employment tax that Dave is required to pay on his compensation and his

share of the KBS income if KBS is formed as a C corporation, will be:

= 7.65% × $75000

= 7.65/100 × $75000

= 0.0765 × $75000

= $5738

2. As an S Corporation will be:

= 7.65% × $75000

= 7.65/100 × $75000

= 0.0765 × $75000

= $5738

3. As a limited liability company will be:

Dave's compensation = 75,000

Dave's portion of income will be calculated as:

= 50% × $30,000

= 0.5 × $30,000

= $15,000

Total will then be:

= $75000 + $15000 = $90000

We then calculate the net earnings which will be:

= 92.35% × $90000

= 0.9235 × $90000

= $83115

The FICA and/or self-employment tax that Dave is required to pay will then be:

= 15.3% × $83115

= 0.153 × $83115

= $12717

8 0
2 years ago
Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig
borishaifa [10]

Answer:

$400 .Since inventory is valued at cost or market value(current replacement cost) whichever is lower .

Therefore value of inventory : $400*8=$3200

Explanation:

8 0
3 years ago
Read 2 more answers
Only one commercial bank in the banking system has an excess reserve, and its excess reserve is $400,000. This bank makes a new
Zarrin [17]

Answer:

money supply will increase by 2,400,000

Explanation:

the expansion f the money supply will be:

the money multiplier will be:

1/reserve ratio = 1/0.125 = 8

300,000 x 8 = 2,400,000

The reasoning for the multiplier effect is the following:

once the money is received, it will be used, and the person who receive the cash will deposit their proceeds.

This amount, can generate a new loan for, the remainder after subtracting the required reserve.

300,000 - 12.5% = 262,500

And this, once used will also end in a deposit. This opens the posibility for another loan, after reducing the reserve

262,500 - 12.5% = 229,687.5‬

This can be reapeat again and again and the limit for this is the formula state above:

multiplier effect = 1/reserve ratio

5 0
3 years ago
A small wine and cheese store in Milwaukee sells dozens of different type of cheese: Bulgarian, French, Danish, Greek, and a dom
agasfer [191]

The domestic variety is cheaper because there is no import duties or no charges imposed on it because of the import from other countries.

<u>Explanation:</u>

A country produces a lot of goods and services in it's own economy using the resources which are present in it's own country. But the goods and the services that are not available in the country but are demanded by the citizens of the country are imported from other countries.

When these goods and services are imported from other countries then there is an imposition of duties or taxes on those goods making the charges of those goods high. With the transportation of the goods from one country to the other, then also some cost is imposed on the good. This increases the cost or the price of the good.

5 0
3 years ago
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:
Lynna [10]

Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

01/15/21 : Purchases : 100 units x $5.3 = $530

01/28/21 : Purchases : 100 units x $5.5 = $550

Total units = 200 + 100 + 100 = 400 units

Units sold = Total inventory available for sale - ending inventory

= 400 - 160 = 240 units.

COGS:

Beginning Inventory : 200 units x $5 = $1000

Purchases : 40 units x $5.3 = $212

Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

6 0
3 years ago
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