The analyst also mentioned other factors that could aid china. which items were mentioned as factors that could alleviate china's burden from its debt level:
Debt can be genuinely understood as the amount owed through the borrower to the lender. A debt is the amount of cash this is borrowed for a certain period of time and is to be return along side the interest. the quantity in addition to the approval of the debt relies upon upon the creditworthiness of the borrower.
Solution:-
The answer provided below has been developed in a clear step-by-step manner.
Step: 1
1. Higher incomes
Higher incomes would enable the China to accumulate more resources that it can utilize to pay back the debt that it incurs for economic development.
So, higher incomes would make the debt more manageable.
2. Inflation
Inflation would compel the households in China to use greater proportion of their income for consumption purpose so as to maintain their current standard of living. This would result in a decrease in savings of households in China and would reduce the amount available in future to China to pay back the debt.
So, inflation would make debt less manageable.
3. Higher interest rate
Interest rate acts as the cost of servicing debt.
Higher interest rate implies an increase in cost of servicing debt.
As cost of servicing debt would increase, country has to divert resources from other uses to service the debt and, thus, projects of development would suffer resulting in fewer resources being available in future to service the debt.
So, higher interest rates would make debt less manageable.
4. High savings rate
High savings rate implies that households are saving a greater proportion of their income.
This higher saving would enable the China to accumulate sufficient resources to pay back the debt with ease.
So, high savings rate would make debt more manageable.
5. Current account surplus
Current account surplus implies that income earned through exports is greater than the payments made for imports.
So, in net sense, current account surplus indicates an inflow of income into the country.
This inflow would enable the China to accumulate resources that it can use to payback its debt.
So, current account surplus makes debt more manageable.
6. Non-performing loans
Non-performing loans results in wastage of precious resources of the country and also results in diversion of resources from efficient to inefficient uses.
Such wastage and inefficient use of resources as represented by the non-performing loans reduces the resources available to the country to service its debt.
So, non-performing loans make debt less manageable.
Explanation:Please refer to solution in this step.
Answer:
Following is the complete table -
Makes debt more manageable
Makes debt less manageable
Higher incomes
Inflation
High savings rate
Higher interest rates
Current account surplus
non-performing loans
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5) if rrr(required reserve ratio) is larger, is the money multiplier bigger or smaller? why? explain based on the formula. ( 2 points)
If banks lend more than their reserve requirement allows, their multiplier rises, resulting in more money supply. If banks lend less, their multiplier will be lower, and the money supply will be reduced as well.
What do you know about Money supply?
The money supply (or money stock) is the total amount of currency held by the public at any given time. There are several ways to define "money," but standard measures typically include currency in circulation (i.e., physical cash) and demand deposits (depositors' easily accessible assets on financial institutions' books). A country's central bank may use a definition of what constitutes legal tender for its own purposes. Money supply data is recorded and published, typically by a government agency or the country's central bank. Changes in the money supply are monitored by public and private sector analysts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.
So, If banks lend less, their multiplier will be lower, and the money supply will be reduced as well.
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question 2 electronic stability control reduces the risk of rollover crashes, such as are common with suvs. a) true b) false
It is true that electronic stability control lowers the danger of rollover collisions, which are frequent in SUVs.
What is a commercial illustration of risk?Harm brought on by a natural disaster, as a fire or a flood. unforeseen economic loss imposed on by a downturn in the economy or the demise of a business you owe money to. substantial loss of suppliers or customers. The loss of market share is due to new competitors or products.
What does risk look like?Any chance—high or low—that a danger may actually cause harm to someone is a risk. Working alone outside of your office, for instance, might present risks. Potentially high personal risk exists. Electric wiring is dangerous.
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consider the data in the table. the price of gasoline is $3.99 per gallon at the gas station. if rexhall fuel supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell? 20 million gallons per week 42 million gallons per week 30 million gallons per week 14 million gallons per week
Rexhall Fuel Supplies would be prepared to sell 20 million gallons each week if they were a rational vendor. As a result, choice (A) is the appropriate approach.
What is gasoline?The majority of spark-ignited internal-combustion engines use clear, combustible liquid gasoline as their primary fuel source (also known as petrol engines).
It mostly comprises organic compounds made from petroleum fractional distillation that has been improved with various additions. A typical barrel of crude oil yields 19 to 20 gallons of gasoline, 11 to 13 gallons of distillate fuel, the majority of which is sold as diesel fuel, and 3 to 4 gallons of jet fuel at U.S. refineries.
Hence, option (A) is accurate.
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julia roberts has a bond issue outstanding that matures in four years. the bonds pay interest semiannually. currently, the bonds are quoted at 102.3 percent of face value and carry a coupon rate of 9 percent. what is the firm's after tax cost of debt if the tax rate is 35 percent?
Bond price =C*[1-(1+YTM)^-n / YTM] + [P/(1+YTM)^n]
Where,
C= Coupon amount =1000*9%*6/12 =45
YTM = Yield To Maturity
n = Number of periods =4*2 =8
P= Par value
Bond price =$1000*102.3% =1023
$1023=45 * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
$1023/45= * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
$22.7333= * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
YTM =4.16%
YTM(Annually)= 4.16 * 2 = 8.31%
After-tax cost of debt = cost of debt ×(1-tax rate)
=0.0831× (1-0.35)
=0.0831× 0.65
=5.4 %
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maxwell manufacturing issued $310,000, 9-year, 11% bonds at 105.25. what is the total amount of interest expense that will be recorded over the life of these bonds?
Maxwell Manufacturing will record the total amount of interest expense of $290,625 over the life of the bonds.
What is bond's interest expense?An interest expense in bond, means aggregate interest expense incurred during a reporting period for an organization's bonds payable.
Data available:
Bonds' Face Value = $310,000
Maturity period = 9 years
Coupon Interest Rate = 11%
Issuance rate = 105.25
Bonds Proceeds:
= $310,000 x 1.0525
= $326,275
Bonds Premium (to be amortized over 12 years):
= $326,275 - $310,000
= $16,275
Annual cash payments to bondholders:
= $310,000 * 11%
= $34,100
Total cash payments to bondholders:
= $34,100 * 9
= $306,900
Expense that will be recorded:
= $306,900 - $16,275
= $290,625
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1) what kinds of monetary policy(easy or tight) should be exercised under the recessionary gap? give examples of policy tools in terms of rrr(required reserve ratio), dr(discount rate) and omp(open market policy) (2 points).
Under the recessionary gap, an easy policy should be implemented Because the economy is already in recession, the government should implement simple policies that stimulate aggregate demand and assist the economy in returning to its optimum production.
What is the monetary policy?Monetary policy is the policy implemented by a country's monetary authority to manage either the interest rate on very short-term borrowing or the money supply.
Some examples regarding the policy tools are as:
During the recession, the Federal Reserve reduced the required reserve ratio for banks. As a result, the banks have retained greater surplus reserves, and they may now lend more at lower interest rates, thereby increasing aggregate demand in the economy. During a recession, the Fed lowers the discount rate. The discount rate is the rate at which commercial banks can get short-term loans from the Fed.When the discount rate is lower, commercial banks may borrow from the Fed and expand their lending at lower interest rates, resulting in a rise in aggregate demand in the economy, which is critical for the economy.Learn more about the monetary policy, refer to:
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Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. a. How does the deposit initially change the T-account of the local bank? How does it change the money supply? b. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? c. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, by how much could the total money supply in the economy expand in response to Tracy's initial cash deposit of $500? d. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan and the bank main- tains a reserve ratio of 5%, by how much could the money supply expand in response to Tracy's initial cash deposit of $500?
a. This deposit increases the bank's reserves by $500 and also increases the money supply by the same amount.
b. If the bank maintains a reserve ratio of 10%, it will respond to the new deposit by holding 10% of the deposit as reserves and loaning out the remaining amount.
c. The total money supply in the economy could potentially expand by $5000 in response to Tracy's initial cash deposit of $500.
d. The total money supply in the economy could potentially expand by $10,000 in response to Tracy's initial cash deposit of $500.
a. When Tracy Williams deposits $500 in her sock drawer into a checking account at the local bank, the T-account of the local bank will be affected as follows:
T-account of the local bank:
Assets: +$500 (increase in reserves)
Liabilities: +$500 (increase in deposits)
This deposit increases the bank's reserves by $500 and also increases the money supply by the same amount. The money supply increases because deposits in banks are considered part of the money supply, specifically the M1 money supply which includes currency and checkable deposits.
b. The reserve ratio is the fraction of deposits that a bank is required to hold as reserves, and the rest can be loaned out to borrowers.
Initial deposit = $500
Reserve ratio = 10%
Reserves held by the bank = $500 × 0.10 = $50
Loan amount = $500 - $50
= $450
c. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, the total money supply in the economy could expand by a multiple of Tracy's initial cash deposit.
Initial deposit = $500
Money multiplier = 1 / Reserve ratio
Money multiplier = 1 / 0.10 = 10
Total potential money supply expansion = Initial deposit × Money multiplier
Total potential money supply expansion = $500 × 10 = $5000
So, the total money supply in the economy could potentially expand by $5000 in response to Tracy's initial cash deposit of $500.
d. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, and the bank maintains a reserve ratio of 5%, the money supply could expand even further.
Reserve ratio = 5%
Money multiplier = 1 / 0.05 = 20
Total potential money supply expansion = Initial deposit × Money multiplier
Total potential money supply expansion = $500 × 20 = $10,000
So, the total money supply in the economy could potentially expand by $10,000 in response to Tracy's initial cash deposit of $500.
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a product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n)
Discontinuous innovation is the term used to describe a product that requires consumers to learn whole new consumption habits.
Why is innovation sporadic?Discontinuous Innovation: Products are offered to customers that need them to alter their usual behavior. For instance, Sony recently unveiled a new high-definition television that would not work with current broadcasting standards, necessitating the use of alternative sources of programming.
Discontinuous product: what is it?Advanced features that aren't available in current goods and can't be obtained by extending existing technologies are involved in discontinuous products. The benefits of the product that the consumer or user perceives and experiences are referred to as part of the product capability dimension.
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b. suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. what amount of the total costs can melissa deduct as business expenses?
Suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. what amount of the total costs can Melissa deduct as business expenses? $0
None of the cost for sightseeing is deductible, because the primary purpose of the trip was business. She is not allowed to deduct any personal expenses like, meals, lodging, and transportation during sight visit.
Therefore, the amount of travel cost Mellissa deduct as business expenses is $0
Sightseeing is the hobby of going to a new vicinity and sorting out all the sights and cool capabilities of that area. walking around Atlantic city finding out the casinos and boardwalk is an example of sightseeing.
The definition of a capability is some thing that someone or aspect is able to do. whilst someone can cook dinner, this is an example of a situation where he has the functionality to cook dinner. when a pc can open a file, this is an example of a state of affairs wherein the pc has the capability to open the report.
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select the correct answer from each drop-down menu. choose the correct way term to complete each sentence on goods and services. ida has many errands to do today. first, she goes to a department store to try on some shirts. a shirt is an example of a(n) because it is . next, she goes to a restaurant to eat lunch. she could have gone to the grocery store to buy food for the entire week, but she chooses to sit and relax. however, as soon as she leaves the restaurant, the relaxing moment is over. this is because the restaurant experience is a and it is .
Services are defined as intangible advantages that are offered, whereas goods are tangible commodities that can be purchased for a fee. However, they both give the buyer value and enjoyment.
Tangible and intangible assets fall into two different groups. Tangible assets, such as computer equipment, are often tangible assets or property that a corporation owns. The primary asset class used by businesses to produce their goods and services are tangible assets.
Commodities are movable items that can be exchanged for other movable items, money, or both. They are goods that are offered for sale commercially.
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which is a form of direct marketing that involves tracking and analyzing the purchase patterns of specific customers?
Answer: Database Marketing
Explanation:
you own 1,100 shares of stock in avondale corporation. you will receive a $2.60 per share dividend in one year. in two years, the company will pay a liquidating dividend of $48 per share. the required return on the company's stock is 20 percent. suppose you want only $800 total in dividends the first year. what will your homemade dividend be in two years? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
The homemade dividend in two years equals to $55,272.
How to calculate homemade dividend in two years?A dividends refers to the payments that a company makes to share profits with its stockholders. It is paid on a regular basis and are one of the ways investors earn a return from investing in stock
Data:
• Shares of stock= 1100
• yearly per share dividend = $2.60
• Liquidating dividend per share = $48
• Required return on stock = 20℅
• Dividend required by me = $800
Let's solve for the following:
Dividend received in one year:
= 1,100 * 2.60
= $2860
For price of stock in one year, we have:
= $48/1.20
= $40
The number of shares purchased:
= $2860 - $800 / $40
= $2060 / $40
= 51.50 shares
Dividend in two years will be:
= $48 * (1,100+51.50 shares)
= $48 * 1151.50
= $55,272
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Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gambler's Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of _____.
The complete statement is "Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gambler's Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of $8,000. "Option B
What are loans?Generally, In the world of finance, the act of one or more individuals, organizations, or other entities lending money to other individuals, organizations, or other entities is known as a loan.
When someone receives a loan, they are typically responsible for repaying not only the initial amount borrowed but also the interest accrued on the loan up until the point at which the loan is paid off.
The full statement is as follows: "Imagine that all banks are required to maintain a reserve amount equal to 20 percent of their total assets, and that the Gambler's Last Chance Bank in Las Vegas has no reserves in excess of what is required. If a new customer deposits $10,000, the bank is now able to extend new loans up to a maximum of $8,000; however, the maximum loan amount remains unchanged." Alternative B
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CQ
Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gamblers Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of:
a.$2,000.
b.$8,000.
c.$10,000.
d.$50,000.
james green just bought a stock which he expects will provide him with a quarterly cash payment, although that payment is not guaranteed. in fact, he expects the amount of the payment to vary over time. what type of payment is he expecting to receive?
James Green is expecting a payment in the form of a dividend.
Define Dividend.A dividend is the distribution of profits to shareholders by a corporation. When a corporation makes a profit or has a surplus, it has the option of paying a portion of that profit as a dividend to its shareholders. Any money that is left over is taken out and put back into the business.
A corporation distributes a percentage of its profits and retained earnings as a dividend to its shareholders. Retained earnings, which are accumulated when a corporation generates a profit, can either be reinvested in the business or paid out as a dividend to shareholders.
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how can a reduction in direct cost generate more of a price savings for a supply manager than a similar percentage reduction in the seller’s profit?
Everything is based off the cost of a product. A reduction in one cost of the product has a ripple effect lowering all the cost for the rest of the product and lowering the cost of the profit at the end. A reduction in the seller's profit just takes a small percentage off the top of the price.
Profit, in accounting, is an profits disbursed to the proprietor in a profitable marketplace production technique. income is a measure of profitability that's the owner's foremost interest inside the income-formation technique of marketplace production. There are numerous profit measures in common use.
Income describes the financial gain found out while sales generated from a enterprise pastime exceeds the charges, fees, and taxes worried in maintaining the pastime in question.
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a system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their nonroutine tasks is known as a(n) system.
A system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their non routine tasks is known as an operation information system.
It is safe to assume that the word being defined is an operational information system based on the information supplied in the question. In a nutshell, this is a system that a business uses to efficiently conduct all of its everyday business activities.
In order to provide the managers with the most complete data possible, the information is quickly collected, arranged, and summarized in an independent manner.
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A system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their non routine tasks is known as an operation information system.
They consider ongoing, daily operations as well as what must be done to fulfil urgent requests and short-term objectives. It is safe to assume that the word being defined is an operational information system based on the information supplied in the question. In a nutshell, this is a system that a business uses to efficiently conduct all of its everyday business activities. In order to provide the managers with the most complete data possible, the information is quickly collected, arranged, and summarized in an independent manner.
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amdd has 7 percent preferred stock outstanding that is currently selling for $49 a share. the market rate of return is 14 percent and the firm's tax rate is 37 percent. what is the firm's cost of preferred stock?
Amdd has 7 percent preferred stock outstanding that is currently selling for $49 a share. the market rate of return is 14 percent and the firm's tax rate is 37 percent. 14.29 percent is the firm's cost of preferred stock.
Preferential stock: What is it?One sort of stock that combines elements of bonds and equities is preferred stock. Preferred shares pay out cash dividends like bonds do, frequently at a greater yield than bonds while carrying less risk than regular stock and larger dividend returns.
How are preferred stocks traded?By paying dividends, preferred stocks provide a consistent flow of revenue. The dividend payments on preferred shares are fixed and typically range from 5 to 7 percent, and are typically greater than bond payments. They are furthermore paid out after bondholders get their payments but before dividends on common shares.
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the equation of exchange part 2 a. states that the money supply times velocity equals nominal national income. b. is an accounting identity and is always correct. c. states that expenditures by some people equal income received by others. d. all of the above.
The equation of exchange is a states that the money supply times velocity equals nominal national income, an accounting identity and is always correct, and states that expenditures by some people equal income received by others.
The exchange equation is M V P Q. The velocity is the typical annual rate at which a dollar is spent to purchase final goods and services.
The monetarist theory is represented by the equation of exchange, MV = PQ. Here, M is the total amount of money available, and V denotes the velocity of money turnover or the frequency with which the average dollar in the money supply is spent on products on a yearly basis.
T stands for all the products and services exchanged. The exchange equation is an identity equation, meaning that MV is exactly equivalent to PT (or that MV = PT). The equation must always be accurate in the ex-post, or factual, sense.
Hence the correct option is D
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In a project monitoring system, data collected from ____ activity duration, resource usage, and costs are compared against ____ activity duration, resource usage, and costs.
In a project monitoring system, data collected from resources activity duration, resource usage, and costs are compared against project activity duration, resource usage, and costs.
In order to develop the project schedules, the scheduling process requires examining the activity sequences, activity resource estimations, and activity length estimates.The outcomes of the previous step are arranged to create the project's final schedule during the development schedule process. In this essay, the definition of the development schedule process and its goals are explored in great detail.Prior to creating the project schedule model, an analysis of activity sequences, durations, resource needs, and scheduling constraints is required.You will have a finalised project plan once the development schedule process is complete, which will include details like the beginning and ending dates of each project activity.
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Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.70, $17.70, $22.70, and $4.50. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends, forever.If the required return on the stock is 9 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current share price is $368.57
It is given that dividends over four years are 6.7,17.7,22.7,4.5
Growth rate = 5.5%
Required rate of return = 9%
The current share price (P₀) = D₁÷(k-g)
where,
D₁ = Expected dividend for the next years
k = required rate of return
g = growth rate
Thus,
current share price (P₀) = D₁÷(k-g)
D₁ = average of all the dividends of 4 years = (6.7+17.7+22.7+4.5)/4
=$12.9
current share price (P₀) = 12.9 / (9%-5.5%)
= 12.9 / 3.5%
= 12.9/0.035
= $368.57
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based on an inventory count, the inventory is debited to merchandise inventory and credited to income summary. multiple choice question. average balance ending balance beginning balance need help? review these concept resources.
Based on an inventory count, the ending balance inventory is debited to Merchandise Inventory and credited to income summary.
What is ending balance inventory?Ending balance inventory can be defined as the amount of inventory that a company has in their warehouse at the end of their accounting period.
On the other hand beginning balance inventory is the reverse of ending balance inventory as it is the amount of inventory that a company has in their warehouse at the beginning of an accounting period.
On an inventory count of an organization , the ending balance inventory is debited to Merchandise Inventory account and as well credited to income summary account.
Therefore the correct option is B.
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carol calculates that the total cost of serving 200 customers per day would be $1,600. what is the marginal cost of this increase in customers?
Carol calculates that the total cost of serving 200 customers per day would be $1,600 and 14 is the marginal cost of this increase in customers.
Marginal cost is that the cost to provide one extra unit of production. it's a vital conception in accounting as incremental cost helps verify the foremost economical level of production for a producing method. it's calculated by determinant what expenses square measure incurred if just one extra unit is factory-made.
Cost of serving is that the activity of value factors that go in the service of a client, or the assembly of a product. once paired with revenue, value to serve analysis allows you to accurately calculate gain by client, product sorts, production lines, facilities, processes.
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a fire destroyed furniture and fixtures used in jock's business. jock's adjusted basis in the furniture and fixtures was $81,300. jock received a $100,000 reimbursement from his insurance company and immediately spent $93,000 to purchase new furniture and fixtures, and used the rest of the insurance proceeds to pay operating expenses. how much gain or loss must jock recognize on this involuntary conversion?
A fire destroyed furniture and fixtures used in jock's business. jock's adjusted basis in the furniture and fixtures was $81,300. jock received a $100,000 reimbursement from his insurance company and immediately spent $93,000 to purchase new furniture and fixtures, and used the rest of the insurance proceeds to pay operating expenses. how much gain or loss must jock recognize on this involuntary conversion? $11700.
Purchase price of new equipment = $93000
Adjusted basis of furniture and fixtures destroyed =$81300
Gain on conversion = $93000 - $81300 = $11700.
Repayment is repayment paid through an organization for out-of-pocket expenses incurred or overpayment made by an employee, client, or any other birthday celebration. repayment of business costs, insurance fees, and overpaid taxes are commonplace examples. however, in contrast to standard reimbursement, compensation isn't always situation to taxation.
KEY TAKEAWAYS
Compensation is money paid to an worker or client, or another celebration, as compensation for a business expense, insurance, taxes, or different expenses.
Business price reimbursements include out-of-pocket prices, inclusive of those for tour and food.
In line with diem fees are every day fees paid to personnel as compensation for enterprise journeys.
Tax refunds are a form of reimbursement from the authorities to taxpayers.
Organizations have a vested interest in ensuring that reimbursements are only supplied for valid reasons.
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you take $500,000 out of your sock drawer and provide yourself with a 15-year annuity. assuming a 10% interest rate, how much will this annuity be?
This annuity will be 3333.33. Annuities are primarily utilised in interest rate and assist people in reducing the danger of outliving their assets.
Drawer = $500,000
Annuity= 15 year
Interest rate= 10%
$500,000*10%/15
= 3333.33
The term "annuity" refers to an insurance contract that financial institutions have created and disseminated with the goal of paying out invested money as a fixed income stream in the future.
Annuities are bought or invested in by investors using monthly premiums or one-time lump sum payments. For a predetermined amount of time or for the length of the annuitant's life, the holding institution issues a stream of payments in the future.
Annuities are primarily utilised in retirement and assist people in reducing the danger of outliving their assets. Financial products known as annuities provide retirees with a guaranteed income source.
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laser corporation had $275,000 in invested assets, sales of $330,000, operating income amounting to $33,000, and a desired minimum return on investment of 7.5%. the return on investment (rounded to one decimal place) for blaser corporation is
By dividing operating revenue by invested assets, the rate of return on investment is calculated. Due to the fact that the operating income is $33,000 and invested assets total $275,000 Consequently, a 12% rate of return on investment is realized.
It establishes the quantity of investment return in relation to investment cost. It may be stated as a ratio or percentage. By dividing an investment's return by its cost, the return on investment is calculated.
The management is able to choose the most profitable investment option available to them thanks to the return on investment of various assets. To calculate the return on investment, use the data regarding operational income and invested assets.
Use the calculation below to get the rate of return on investment:
Rate of return = operating income / invested assets
= 33000 / 275000
= 12%
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the standard of living varies greatly among groups within a country as well as from nation to nation.
Yes, it is true that the standard of living varies greatly among groups within a country as well as from nation to nation.
The level of comforts, amenities, and services that are available to a society or location as a whole, as opposed to just one person, is referred to as the standard of living. The standard of living is significant because it is thought to affect a person's quality of life. The economy of the country is divided into different sections which produce different services. The value of the services is also different, which affects the money earned by the people of the country. As per the money earned by the people of the country, the country is divided into different classes based on earnings which create different standards of living in the country.
Apart from this, there was several economic and social dimension and disparities existing in the nation which gives more way to a different standard of living. All these together affect the standard of living of the people of the nation.
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in the income statement section of the worksheet, if the debit column (column 5) is smaller than the credit column (column 6), what does this indicate?
In the income statement section of the worksheet, if the debit column (column 5) is smaller than the credit column (column 6), this shows net loss.
Net income is calculated by subtracting entire expenses (Debit column total) from total revenue (Credit column total). At the bottom of the work sheet's Income Statement section, net income is written as a debit. Put the net income amount on the same line in the Balance Sheet Credit column. You have a net loss if your entire expenses (debit column total) exceed your total revenue (credit column total). At the bottom of the work sheet's Income Statement section, net loss is reported as a credit. Put the net loss amount on the same line in the balance Sheet debit column.
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Theo Chocolate has very public dedication to international fair trade, a dedication that comes before profits. Customers and employees who care about fair trade are more likely to support the cause with donations to Fair Trade USA. O more likely to shop for the best price or demand the highest salary. more likely to buy from or stay loyal to the firm
Theo Chocolate has very public dedication to international fair trade, a dedication that comes before profits. Customers and employees who care about fair trade are more likely to buy from or stay loyal to the firm.
With the help of fair pricing and the Fair Trade organization, fair trade helps farmers to improve their standard of living while contributing to broader societal change. Ecocert has granted Fair for Life certification to Theo Chocolate.
We focus on sourcing goods from smallholder farms and want to use organic and fair-trade products whenever feasible. With the intention of fostering prosperous, resilient communities, we work fairly with cocoa and ingredient-sourcing partners to provide them with decent wages.
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differences in information, also called , explain why firms respond differently to situations. group of answer choices information asymmetry information symmetry information contrast information congruence
The differences in information is also called as (b) Information Asymmetry explains why firms respond differently to different situations.
What is Information Asymmetry?A mismatch in the understanding of important facts and specifics between the two negotiating sides is known as information asymmetry. The side with more information typically has a competitive edge over the opposing party due to this imbalance.
How can information asymmetry be managed?Enhancing company investment efficiency is required to lessen the effects of the information asymmetry issue. Investment institutions should feel more accountable for disseminating accurate information, and related incentive and penalty policies may be developed.
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if you invest $500 each month at an annual rate of 7%, in how many month will it become $300,000? the answer could be in decimals.
If you invest $500 each month at an annual rate of 7%, in 11.02 month it will become $300,000. To answer this, we need compound interest formula.
Here the equation is :
A= P[1+(r/n)]^(n*t)
Variable meaning:
A: Amount
P: Initial amount
R: Interest rate (decimal)
N: Number of times interest is compounded per year
T: Time (years)
Given in the question:
A = 300,000
P = 500
R = .07 (remember that when turning percent to decimal you move the decimal 2 to the left)
N = 12 (because there are 12 months a year)
T = ?
Plug into the equation:
300000 = 500 [1+ (0.07/12)] ^(12t)
Solve:
300000/500 = (1.05)^12t
600 = (1.05)^12t
Apply log on both sides,
log(600) = 12t log( 1.05)
2.778 = 12t*0.021
2.778/0.021 = 12t
13.28 = 12t
t = 11.02
Therefore, if you invest $500 every month for 11.02 months then the investment should total $300,000.
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