Not much is gained but it would be c
Answer:
Correct option is (c)
Explanation:
Nominal interest rate is the sum of real interest rate and inflation. The lender charged nominal interest rate of 15% expecting inflation to be 10% in the following year. However, inflation was 12%. So, nominal rate becomes 17% (12% + 5%).
The lender should have charged a nominal interest rate of 17% instead of 15%. Now, he has to bear the loss of 2%. Borrower on the other hand benefited as he is paying lower interest rate than what is prevailing in the market.
Answer:
$254
Explanation:
First we must calculate the employee's remaining taxable portion = wage base - year to date earnings = $118,500 - $114,400 = $4,100
Then we multiply the employee's remaining taxable portion times FICA-OASDI tax rate = $4,100 x 6.2% = $254.20, we round down to the nearest dollar = $254
Answer:
$47,900
Explanation:
To determine the amount that both partners must report in their individual income tax return we can start with the partnership's book income and start subtracting net capital gains and subtracting dividends.
$100,000 - ($7,000 - $3,000) - $200 = $100,000 - $4,000 - $200 = $95,800
now we divide between the two partners = $95,800 / 2 = $47,900
