Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 5 and 12. they have determined that their annual income is $60,000 and their net worth is now $150,000. What is the amount of life insurance they should carry using the Easy Method?

Answers

Answer 1

Answer:

the amount of the life insurance when the easy method is used is $294,000

Explanation:

The computation of the amount of the life insurance when the easy method is used is given below:

= Annual gross income × 70% × 7 times

= $60,000 × 70% × 7 times

= $294,000

Hence, the amount of the life insurance when the easy method is used is $294,000

The same is to be considered and relevant


Related Questions

Marigold Corp. bought a machine on January 1, 2011 for $806000. The machine had an expected life of 20 years and was expected to have a salvage value of $76000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $395000 and its fair value was $288000. If the company does not plan to dispose of it, what should Marigold record as an impairment loss on July 1, 2021

Answers

Answer: Marigold should record $134,750 as an impairment loss on July 1, 2021

Explanation:

Given that  

Cost of the machine= 806,000

Expected life= 20 years

Time between January 1, 2011 and July 1 2021 = 10 1/2years

salvage value $76000.  

Fair value= $288, 000

We know that the

Carrying amount /Book Value of machine = Cost of the machine- (Cost of the machine-salvage value)/expected life x time (ie from 2011 and 2021)

Carrying amount of machine =806,000 - [(806,000-76,000)/20  x 10.5 years]

=806,000 -383,250=$422,750

Asset is impaired when the Book value is more than net realizable value,

Here, The Book Value of $422,750 is greater than  net realizable value,$395000.

Therefore  loss on Impairment= Carrying amount - Fair value

$422,750-$288000

=$134,750

Limitation of scientific management ​

Answers

Answer:

Exploitative Devices: Management did not share benefits of increased productivity and so economic welfare of workers was not increased. 2. Depersonalized work: Workers were made to repeat the same operations daily which led to monotony

Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,240 salvage value. On January 1, 2021, the estimates are revised. Splish now feels the computer will be used until December 31, 2022, when it can be sold for $620. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 g

Answers

Answer:

$2914

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense

3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value  

4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($9,920 - $1240) / 5 =  $1736

Accumulated depreciation = 1736 x 2 = $3472

Book value at the beginning of 2021 = 9920 - 3472 = $6448

Depreciation expense in 2021 = (6448 - 620) / 2 = $2914

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
Direct materials $61,500
Direct labor 40,000
Overhead 25,500
At the split-off point, a batch yields 1,400 barlon, 2,900 selene, 2,800 plicene, and 3,700 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $24 per unit, plicene sells for $27 per unit, and corsol sells for $36 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.

Answers

Answer:

Alomar Company

Allocation of Joint Costs:

Barlon =   $10,002

Selene = $29,250

Plicene =   $31,771

Corsol =  $55,977

Explanation:

a) Data and Calculations:

Joint costs:

Direct materials    $61,500

Direct labor            40,000

Overhead              25,500

Total joint costs $127,000

Joint Products             Barlon    Selene     Plicene      Corsol         Total

Batch output units       1,400      2,900       2,800       3,700         10,800

Selling price per unit     $17           $24          $27          $36

Sales value            $23,800  $69,600   $75,600 $133,200  $302,200

Allocation of Joint Costs:

Barlon =   $10,002 ($23,800/$302,200 * $127,000)

Selene = $29,250 ($69,600/$302,200 * $127,000)

Plicene =   $31,771 ($75,600/$302,200 * $127,000)

Corsol =  $55,977 ($133,200/$302,200 * $127,000)

Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data gathering, analysis, and reporting $ 23,000 Net cost of spoilage $ 88,000 Re-entering data because of keying errors $ 98,000 Test and inspection of in-process goods $ 24,000 Final product testing and inspection $ 78,000 Statistical process control activities $ 49,000 Returns arising from quality problems $ 16,000 Downtime caused by quality problems $ 26,000 What would be the total appraisal cost appearing on the quality cost report

Answers

Answer:

$102,000

Explanation:

Calculation to determine What would be the total appraisal cost appearing on the quality cost report

Using this formula

Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection

Let plug in the formula

Total appraisal cost=$ 24,000+$78,000

Total appraisal cost=$102,000

Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000

You are considering purchasing a dump truck. The truck will cost $45,000 and have an operating and maintenance cost that starts at $15,000 the first year and increases by $2,000 per year thereafter. Assume that the salvage value at the end of 5 years is $9,000 and interest rate is 12%. The equivalent annual cost of owning and operating the truck is most nearly:

Answers

Answer:

The equivalent annual cost of owning and operating the truck is most nearly:

= $29,616.

Explanation:

a) Data and Calculations:

                                                    Costs          PV Factor       Present Value

Year 0 Truck purchase           $45,000          1                       $45,000

Year 1  Operating &

           maintenance cost          15,000          0.893                  13,395

Year 2 O&M cost                       17,000          0.797                  13,549

Year 3 O&M cost                       19,000          0.712                  13,528

Year 4 O&M cost                       21,000          0.636                 13,356

Year 5 O&M costs                    23,000          0.567                  13,041

Year 5 Salvage value                -9,000          0.567                  -5,103

Total costs                                                                             $106,766

Annuity factor at 12% after 5 years = 3.605

Equivalent annual cost = $29,616 ($106,766/3.605)

Can You Learn To Lead, written by the New York Times, do you believe anyone can learn to read? Why or why not? Explain your answer by pointing out details from the article.

Answers

Answer:

GUESS WHAT TIME IT IS FOR YOU time for u to ask goo gle not us.. thx for the points tho

Explanation:

have a good day :)

You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first

Answers

Question:

You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first

Options:

A. sort by personal characteristics, such as age and income level.

B. sort by customer types, such as commercial and reseller.

C. sort by customer types, such as restaurants, grocery stores, and food product manufacturers.

D. sort by end-use application, such as food preparation versus food product production

Answer:

The best choice is C) sort by customer types, such as restaurants, grocery stores, and food product manufacturers.

Explanation:

The above choice is called:

Firmographic Segmentation: This refers to focusing ones marketing efforts on Business to Business relationships. This is more beneficial because

businesses have set standards, they are easy to relate withthey already have a hub of numerous customers waiting to buy from themthere is an assurance of consistent demand for the herbs

Cheers

The best way to segment these prospects is : Sort by customer types such as restaurants, grocery stores, and food product manufacturers.

What is Firmographic Segmentation?

Firmographic Segmentation is a term, given to a situation where a company lay more emphasis on Business to Business marketing relationships.

The importance of firmographic segmentation are :

It enables businesses have set standards.Businesses are easy to relate with.There is an assurance of consistent demand.

Hence, the best way to segment these prospects is to sort by customer types such as restaurants, grocery stores, and food product manufacturers.

Learn more about Firmographic Segmentation here : https://brainly.com/question/24882209

Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible

Answers

Answer:

Jonathan

The number of units of the 3-year bond that Jonathan should buy is:

3.88 or 3 and 22/25 bonds.

Explanation:

a) Data and Calculations:

Present value of debt = $3,000

Annual effective interest rate = 8%

Total future value of the debt with interest = $3,492.30

Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)

Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds

Time to Maturity    Par Value

1 year                        $1,000

2 years                      $ 800

3 years                      $ 900

From an online calculator, the total amount to be paid with interest is $3,492.30:

N (# of periods)  3

I/Y (Interest per year)  8

PV (Present Value)  3000

FV (Future Value)  0  

Results

PMT = $1,164.10

Sum of all periodic payments $3,492.30

Total Interest $492.30

Answer:

1.2

Explanation:

Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].

First Year:

The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.

Second Year:

The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.

Third Year:

This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.

Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.

Help
Sove & Exit
Submit
For the current fiscal year, Purchases were $350,000, Purchases Returns and Allowances were $5,000 and Freight In was $29,000. If the
beginning merchandise inventory was $210,000 and the ending merchandise inventory was 595,000, the Cost of Goods Sold is:

Answers

Answer:

212,000

Explanation:

Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which of the following would be the most efficient way to make this change?

Use Format Painter.

Use Animation Painter.

Use font commands on the Home tab.

Use slide master.

Answers

Answer:

D. Use slide master.

Explanation:

Edge

Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.

Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?

Answers

Answer:

18000*2

Explanation:

During January, the solar cell factory begins 57,000 solar cells, and completes 53,000 of them. The remaining 4,000 solar cells are 25% through the production process. 61,000 solar cells are sold during the month.Actual production costs (i.e., costs put into production during the month) are $12.9 million: $3.1 million direct material and $9.8 million fixed overhead.1. After all needed adjustments have been made, and under absorption costing, what is the total cost included in (20 points)a. finished goods inventory as of January 31

Answers

Answer:

"2000 units" is the right solution.

Explanation:

The given values are:

Transferred from WIP,

= 53,000 units

Units sold,

= 61,000 units

Beginning inventory,

= 10000 units

Now,

The total number of finished goods will be:

= [tex]( Beginning \Inventory + Transferred \ from \ WIP - Units \ Sold )[/tex]

On substituting the values, we get

= [tex]( 10000 + 53000 - 61000 )[/tex]

= [tex]2000 \ Units[/tex]

The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its average fixed costs are equal to $30 per unit produced. The total costs at this output level are equal to $2,500.

Required:
a. What is the company’s current output level?
b. What are the total variable costs at this output level?
c. What are the total fixed costs?

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the number of units produced:

Number of units= total cost/ average unitary cost

Number of units= 2,500 / (20 + 30)

Number of units= 50 units

Now, the total variable cost:

Total variable cost= 50*20

Total variable cost= $1,000

Finally, the fixed costs:

Fixed cost= 50*30

Fixed cost= $1,500

The recent electric bills for the Rafael family were as follows. August, $187.55, September, $197.34; October. $200.44; and November, $256.88. Find the average monthly expenditure.​

Answers

Answer:

210.55

Explanation:

A store has the following sales for the next three month: May $ 240,000 June $ 200,000 July $ 190,000 Cash sales are 25% and all the remaining credit sales (75%) are collected in the month following the sale. The total amount of cash expected to be collected from customers in July is

Answers

Answer:

$197,500

Explanation:

Calculation for July cash collections

Cash collection = $ 190,000 x 25 % + $ 200,000 x 75 %

                           = $197,500

The total amount of cash expected to be collected from customers in July is $197,500.

g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.

Answers

Answer:

The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand

Explanation:

liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of

consumers, whereby consumer will prefer saving their money instead of

investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand

As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the resulting output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.

Answers

Answer: c. it ensures productive efficiency.

Explanation:

The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.

With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.

This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.

Therefore, the correct option is C "it ensures productive efficiency".

In your own words write a definition for ecology ?

Answers

Answer:

the study of an organism sorrundings and the interactions between the organisms(them).

Explanation:

Antitrust laws make which of the following illegal?

Answers

Answer:

B and E

Explanation:

Sherman Antitrust was created so that a monopoly couldn't bankrupt every other business. The other answers are all fine.

g Projects with different lives: Your firm is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $45,000 and should last four years. The lesser quality printer costs $35,000 and should last three years. If the cost of capital for the firm is 14 percent, then what is the equivalent annual cost for the best choice for the firm

Answers

Answer:

The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60

Explanation:

The equivalent annual cost is the present value of the printer machine divided by the present value  annuity factor.

Annuity factor for n years = 1- (1+r)^(-n)/r

Annuity factor for four years = (1- 1.14^-4)/0.14 =2.9137

Annuity factor for three years =(1- 1.14^-3)/0.14= 2.3216

Printer                                                        Equivalent annual cost of printer

High quality        45,000/2.9137                  15,444.22

Lesser quality    35,000/2.3216                   15,075.60

The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.4 hours Standard labor rate $ 13.20 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,200 hours Actual total labor cost $ 92,160 Actual output 1,050 units What is the labor efficiency variance for the month

Answers

Answer:

the  labor efficiency variance is $35,244 favorable

Explanation:

The computation of the labor efficiency variance is shown below:

As we know that

Efficiency Variance is

= Standard rate × (Standard hours - Actual Hours)

= $13.20 × (9.4 ×1,050 units - 7,200 hours)

= $13.20 × (9,870 hours - 7,200 hours)

= $35,244 favorable

hence, the  labor efficiency variance is $35,244 favorable

A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.

Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22

What are the Mean chart three-sigma upper and lower control limits?

a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16

Answers

Answer:

b. 23.16 and 16.84

Explanation:

Mean (X-bar) = Sum of observations / No of observations

Range (R) = Highest observation - Lowest observation

Machine 1

Mean (X-bar) = (17 + 15 + 15 + 17) / 4

Mean (X-bar) = 16

Range (R) = (17 - 15)

Range (R) = 2

Machine 2

Mean (X-bar) = (16 + 25 + 18 + 25) / 4

Mean (X-bar) = 21

Range (R) = (25 - 16)

Range (R) = 9

Machine 3

Mean (X-bar) = (23 + 24 + 23 + 22) / 4

Mean (X-bar) = 23  

Range (R) = (24 - 22)

Range (R) = 2

Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20

Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3  = 4.33

From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729

UCL = X-double bar + (A2 x R-bar)

UCL = 20 + (0.729 x 4.33)

UCL = 23.1566

UCL = 23.16

LCL = X-double bar - (A2 x R-bar)

LCL = 20 - (0.729 x 4.33)

LCL = 16.8434

LCL = 16.84

what is cover letter is?

Answers

Answer:

A cover is a job application or document in this case that is submitted with The client's/Your credentials and why your interested in the job opening.

Yahir wants to become an Actor. What are the most helpful examples of milestones for this goal? Check all that apply.

taking an acting class
running a race
taking a science class
learning how to cook
participating in a school play
auditioning for a part in a television show

Answers

The helpful examples of milestones for becoming an actor includes:

taking an acting classparticipating in a school play auditioning for a part in a television show

Who is an actor?

An actor means someone who profession is based on acting on the stage, films, television etc.

The helpful examples of milestones for becoming an actor includes taking an acting class, participating in a school play  and auditioning for a part in a television show.

Therefore, the Option A, E and F is correct.

Read more about Actor skills

brainly.com/question/1543496

A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 495 $2,100 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is

Answers

Answer:

Ending inventory cost= $599

Explanation:

Giving the following information:

June 1 150 units $ 390 (2.6)

June 10 200 units 585 (2.93)

June 15 200 units 630 (3.15)

June 28 150 units 495 (3.3)

Ending inventory in units= 200

To calculate the ending inventory, first, we need to calculate the average price:

Average price= (2.6 + 2.93 + 3.15 + 3.3) / 4= $2.995

Now, the ending inventory:

Ending inventory= 2.995*200

Ending inventory= $599

Colleen Matthews had just turned 22 when her hard work finally started to pay off. Six months earlier Colleen graduated from a state university with a master’s degree in accounting. Colleen graduated with honors and was one of the youngest in her class. Unlike most of the intellectuals she had studied with throughout her career, Colleen was extremely social and had great communication skills. After graduation she took a job with a welI-known regional accounting firm. The firm specialized in assisting companies with their technology problems. Colleen knew that the connections and knowledge she would gain working for the firm would be beneficial throughout her career. Now, six months after graduation, she has a full-time job offer with one of the firm’s strongest clients.Within a few days on her new job, Colleen adapted to her new environment. Colleen and two other recent graduates were running the entire accounting department. However, it wasn’t long until Colleen began to notice that something wasn’t right. After a few weeks, Colleen realized that the firm’s executives were participating in illegal transactions. The company executives were importing expensive technological products from China and selling them under the table to contacts unknown to Colleen. Once the firm received the products at the shipping dock, the executives’ "personal employees" marked the products and took them to a separate location. The entire operation was done with little paperwork. The money received from the special products received special attention. Colleen was told to report this inflow of cash in an account called "Personal Executive Consulting Services." This categorization allowed the executives to personally use the money at their convenience.Earlier in the textbook we discussed the net worth method. How do you think the net worth method can help prosecutors determine the extent of these executives illegal income?

Answers

Answer:

Prosecutors of this case can use the net worth method to determine the extent these executives have been receiving  illegal incomes by computing their wealth at the beginning  and at the end of the period under investigation.

There will be an increase in the executives wealth, and since this increase cannot be traced to any legal income source, it will become taxable income, with the calculated penalties and fines.

Explanation:

The net worth method specifies that any increase in wealth, which is not traced to non-taxable sources, should be determined as a taxable income for the period under review.  Ordinarily, the net worth is the difference between assets and liabilities.  Since the executives use the money personally at their convenience, this will increase their personal wealth.

The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. Low (near 0%) b. High (near 100%) c. Dependent on the number of alternatives d. Dependent upon the number of states of nature 3 points

Answers

Answer: low (near 0%)

Explanation:

The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.

It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.

Laurie owns land that serves as security for a $60,000 mortgage. Her basis in the land is $20,000 and the fair market value is $50,000. Laurie is not personally liable for the loan. The bank forecloses on the property. What is the tax consequence to Laurie?
A. Laurie recognize income in the amount of his discharge of indebtedness; $60,000.
B. Laurie has a gain on the transfer and must recognize income of $40,000.
C. Laurie has $40,000 of income; a gain of $30,000 on the transfer and discharge of indebtedness of $10,000.
D. Both (a) and (b).
E. None of the above.

Answers

Answer:

D. Both a and b.

Explanation:

Laurie has land of $60,000 as mortgage. Her basis in the land is $20,000 which means she can recognize the income of $40,000  as a gain on transfer.   The fair market value of land is $50,000, the amount of discharge of indebtness is $60,000 which is the amount of mortgage.

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% installment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?

Answers

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

Other Questions
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