Answer:
Answers are available in the attached images
Explanation:
This question is incomplete. I will type the complete question below and add image attachments of the solution as tabulated journal entries are required.
At the end of 2017, Payne industries had a deferred tax asset account with a balance of $26 million attributable to a temporary book tax difference of $65 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $220 million and the tax rate is 40%. Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.
Answer:
The answer is: Stock markets reflect all available information about the value of stocks
Explanation:
Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.
Answer:
The result will be that Americans will buy more pesos because Mexican goods become relatively less expensive.
Explanation:
If the exchange rate between the U.S. dollar and the Mexican peso starts out at $0.12 per peso, and then changes to $0.09 per peso it means that people would receive more Mexican pesos for its dollars as 1 peso used to cost $0.12 and it now costs $0.09. If a product costs $100 pesos, when the exchange rate is $0.12 per peso, it costs Americans $12 pesos and when the exchange rate is $0.09 per peso, it costs $9 pesos which indicates that the price of the product decreases. This means that Mexican products will be cheaper for Americans and because of that the answer is that Americans will buy more pesos because Mexican goods become relatively less expensive.
Answer:
7.38%
Explanation:
Interest rate is the rate of difference between the current price and face value in a specified period of time in annual terms.
Face value Current price Coupon Maturity
100 95 0 1 year
100 92 1.5 paid every six months
One year rate = ( 100 / 95 ) - 1 = 0.0526 = 5.26%
Now use following formula to calculate the Two years rate
=Rate(4,1.5,-92,100)x2 = 0.0738 = 7.38%