If the bond's valuation is lower than the market price, you should buy it because the bond is undervalued. Additionally, the bond is overvalued and should be sold if the market price is lower than the bond price.
What is the formula for YTM?The total rate of return that a bondholder anticipates earning if the bond is held until maturity is referred to as YTM in the context of bonds. A single Bond's YTM formula is as follows:[Annual Interest plus [(FV-Price)/Maturity]] / [(FV + Price)/2] is the yield to maturity.
What is the acronym YTM?yield to maturity (YTM) is an estimate of a portfolio's return. It accepts that the purchaser of the security will hold it until its development date, and will reinvest each premium installment at a similar financing cost. As a result, the coupon rate is taken into account when calculating yield to maturity. The redemption yield is another name for YTM.
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A hiking boot’s profits are declining because new competition has entered the market, but its cost has also declined due to increased volume of production. What stage of the product development life cycle is the hiking boot in?.
A hiking boot’s profits are declining because new competition has entered the market, but its cost has also declined due to increased volume of production that means it is in Maturity stage.
A product? Why do you say that?A product is any good or service you provide to meet a customer's need or desire. Both actual and virtual ones exist. Physical products include both long-lasting items (like furniture, computers, and automobiles) and short-lasting ones (like food and beverages).
Why are product descriptions so important?Product descriptions assist customers in making decisions. They also make your website appear more professional because it would be silly to merely display products and their pricing without giving the customer any information about them.
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if the nominal interest rate is 8 percent and rate of inflation is 5.5 percent, then the real interest rate is
the real interest rate is 2.5 percent.
How are real interest, the nominal interest rate, and inflation calculated?A "real interest rate" is a rate of interest that has been adjusted for inflation. The real interest rate is calculated by deducting the nominal interest rate from the inflation rate. The real interest rate is defined mathematically as the nominal interest rate less the inflation rate.
What is the formula for the inflation rate?Take the Consumer Price Index (CPI) from the current year and divide by 12 to get the percent increase in inflation over the previous year. Divide that amount by the CPI from the prior year, then multiply the resulting number by 100.
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The real interest rate is 2.5 percent.
How are real interest, the nominal interest rate, and inflation calculated?A "real interest rate" is a rate of interest that has been adjusted for inflation. The real interest rate is calculated by deducting the nominal interest rate from the inflation rate. The real interest rate is defined mathematically as the nominal interest rate less the inflation rate.
real interest rate ≈ nominal interest rate − inflation rate
Real Interest rate= 8-5.5
Real Interest rate= 2.5
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the future earnings, dividends, and common stock price of callahan technologies inc. are expected to grow 5% per year. callahan's common stock currently sells for $24.50 per share; its last dividend was $2.40; and it will pay a $2.52 dividend at the end of the current year. using the dcf approach, what is its cost of common equity? do not round intermediate calculations. round your answer to two decimal places.
Cost of common equity is 12.71%.
The computation of the cost of common equity using the DCF approach is shown below:
As we know that
Cost of common equity = Current year dividend ÷ Current price of the stock + growth rate
= $1.89 ÷ $24.50 + 0.05
= 0.0771 + 0.05
= 12.71%
We simply applied the above formula so that the cost of common equity could arrive. Given the options available, the par value of common stock "doesn't matter much because the state uses other means to prevent shareholders from withdrawing capital from troubled companies." Also, the par value of common stock was "introduced to prevent bankrupt companies from unfairly allocating corporate resources".
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when using email marketing, what is the ideal weekly email frequency for marketing and communicating with clients?
Emails are sent twice a month for marketing and client communication, and subsequently on up to weekly.
Which sending frequency is most favored by recipients overall?Keep in mind that receiving too many emails is the main cause of consumer unsubscription. It's good for most firms to send 1-2 emails every week. If you are just starting off, this baseline is particularly useful.
When should email marketing be sent out?The optimum time of day to send marketing emails can be in the morning: Many industries have high open rates at 10am. The afternoon, however, can also produce successful outcomes.
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mr. beck sold real property with a $140,000 adjusted basis for $255,000. the buyer paid $148,000 cash and assumed mr. beck's $107,000 mortgage on the realty. mr. beck's realized gain or loss on sale is:
Property sold =$140,000
Adjusted basis = $255,000
The buyer paid =$148,000
Mortgage on reality =$107,000
The next step is to find Mr. Beck realized gain or loss on the sale
Thus
Sale value =$140,000
Adjusted basis =$255,000
140,00 + 255,000 = $115000
Therefore Mr beck realized gain or loss on sale is $115,000
A loan mortgage or definitely mortgage, in civil law jurisdictions recognized additionally as a hypothec mortgage, is a mortgage used both via consumers of actual assets to raise funds to shop for actual estate or via existing belongings proprietors to elevate funds for any motive while setting a lien at the belongings being mortgaged. The loan is "secured" at the borrower's property through a system called loan origination.
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For bonds issued under a _______ arrangement, the underwriter guarantees the issuer that the bonds will be sold at a specified price.
a. specific value
b. fixed proceeds
c. best efforts
d. firm commitment
Option D is correct. When securities are issued below a company/firm commitment, the underwriter bears the chance of low sales.
Underpricing is a shape of flotation prices incurred when a company problems new securities to the public. An investor exercises her right to buy one additional share at $20 for each and every 5 shares held.
What are bonded positions?A "bonded" worker is covered by means of a constancy bond. These bonds are insurance insurance policies designed to protect towards the chance that an worker will deliberately steal from or injury the property of his enterprise or one of the employer's clients. A bonded employee is one for which the organisation has taken out such a policy.
Bond techniques can be categorised as active, passive, hybrid. Active strategies normally involve bond swaps, liquidating one group of bonds to buy any other group, to take benefit of anticipated changes in the bond market, both to searching for higher returns or to preserve the price of a portfolio.
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https://brainly.com/question/25965295#SPJ4Data using base 1 as base yearYear Nominal GDP Price Index1 3,166 1002 3,402 1043 3,774 1084 3,989 112Refer to the above data. Real GDP in year 4 was approximately:A) $3,989 billionB) $3,562 billionC) $3,774 billionD) $3,494 billion
If year 2 is base year, the real GDP in year 5 is $60. The Base Year is a year that is linked to the real cost of maintaining the property in a given year, including CAM, insurance premiums, and property taxes.
An economic or financial index's base year is the first in a series of years. It is normally set to an arbitrary amount of 100 in this situation. To keep data current in a certain index, fresh, new base years are routinely supplied. Base years are also used to calculate a company's growth rate. The base year can be any year, but experts often pick recent years.
When comparing measurements of a commercial activity, economic, or financial index, a base year is used. For instance, 2016 is the base year or the first year in the specified time frame when calculating the inflation rate between 2016 and 2021.
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The complete question is:
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Refer to the above data.
Year Units of Output Price Per Unit
1 8 $2
2 10 $3
3 15 $4
4 18 $5
5 20 $6
If year 2 is the base year, then Real GDP in year 5 is:
A) $120
B) $90
C) $60
D) $30
cantrell company is required by law to collect and send sales taxes to the state. if cantrell has $10,500 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?
When Cantrell company has $10,500 of cash sales that are subject to an 8% sales tax, then the journal entry will affect a debit to the cash accounts for an amount of $10,500 and a credit to the sales tax at 8 percent of the sales.
A journal entry is an entry that ensures chronological, true and correct maintenance of accounting transaction within an accounting firm for a particular accounting period. The journal entry for the above transaction will be as below,
1. Cash Ac. Dr. 10,500
To Sales Tax Ac. 840
To, Sales Ac. 9660
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An airline with two types of airplanes, P1 and P2, has contracted with a tour group to provide transportation for a minimum of 400 first class, 750 tourist class, and 1500 economy class passengers. For a certain trip, airplane P1 costs $10,000 to operate and can accommodate 20 first class, 50 tourist class, and 110 economy class passengers. Airplane P2 costs $8500 to operate and can accommodate 18 first class, 30 tourist class, and 44 economy class passengers. How many of each type of airplane should be used in order to minimize operating cost and what is the minimum cost? Answer: 9 P1 planes and 13 P2 planes for a minimum cost of $200,500 Note: Please show how to solve the equations by hand
Let , P1 = x
P2 = y
constraints are
20x + 18y >= 400
50x + 30y >= 750
110x + 44y >= 1500
objective function is
minimize
P = 10000x + 8500y
How Does Objective Function Work?
To address the optimization issues, the objective function is required. An objective function is a linear formulation of the equation Z = axe + by, where a, b are constraints and x, y are variables that need to be maximized or reduced. The choice variables are identified as x and y. X > 0 and Y > 0 are two of the restrictions that control an objective function.
Z = ax + by is the objective function.
To identify the best solution to a linear programming issue, one must apply the objective function, which can either maximize profit, reduce cost, or optimize resource allocation. LPP's objective function is frequently used to describe issues in business, industry, and applied sciences.
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______ are major accomplishments that the company would like to achieve; whereas ______ are shorter-term performance targets.
Goals are major accomplishments that the company would like to achieve, Objectives are shorter-term performance targets.
What are the three categories of organizational goals?Individual, team, and corporate goals are the three different categories of organizational objectives. All of these objectives have set deadlines for completion. These objectives frequently have longer time spans than other objectives.
What are the company's short-term and long-term goals?Long-term goals may take three to five years to complete, whereas short-term goals can often be completed in a time span of six months to three years (or even longer). Numerous smaller, shorter-term goals are frequently necessary for and part of a larger, longer-term aim.
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Economies of scope is one of the two key factors in determining whether a corporate strategy is adding value through diversification. The other key factor is opportunities. vertical horizontal geographic globalization revenue-enhancement
The marginal cost is less when two or more goods are produced jointly than when they are produced separately. It's known as an economy of scope in this situation.
Economy of scale versus Economy of scopeBusinesses can improve their production processes in two ways: economies of scope and economies of scale. In the former, diversification takes precedence over cost reduction for a single product.
Economies of scope: Businesses with a diverse product offering can save money by utilizing economies of scope. It enables higher output with a negligible increase in fixed costs.
Economies of scale: An economy of scale is when a company produces more of the same product at a lower marginal cost. This is especially effective in the manufacturing sector, where the construction of factories, the setup of assembly lines, and the hiring of key personnel represent the major fixed costs.
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(figure: market for luxury suvs) which of the following graphs shows what will happen to the supply curve for luxury suvs, if economists predict an increase in demand for these vehicles?
The following graphs show what will happen to the supply curve for luxury SUVs if economists predict an increase in demand for this vehicle graph (D) This is in accordance with the law of supply.
In economics, demand is the quantity of an awesome that purchasers are inclined to and capable of buying at various costs at some point in a given time. the relationship between charge and quantity demand is also referred to as the demand curve.
Demand refers to the purchaser's desire and willingness to buy a service or product at a given duration or through the years. consumers must also have the potential to pay for something they want or want as decided through their disposable income finances.
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you work for a leading tech company that relies heavily on outsourcing it services at delivery centers located in various parts of the world. unfortunately, there is little standardization in how this outsourcing is implemented and managed, resulting in inefficiencies, duplication of work, responsibility gaps, and confusion. your cio has tasked you with the responsibility of standardizing these it outsourcing processes, which will require strategic change across a diverse, global workforce. cio: this lack of standardization is costing us a lot of money. i understand we have to outsource, but how can we manage those processes consistently across so many cultures and locations? you: clearly, we need to make some systemic changes, which is never easy across such a large organization. the select , as i see it, are to create a local team that travels to various locations to implement changes, or create a global team where members can handle changes locally with proper guidance from the home office.
We manage those processes consistently across so many cultures and locations as I see it, are to create a local team that travels to various locations to implement changes.
But offshoring is a subset of outsourcing in which a agency outsources offerings to a 3rd birthday celebration in a rustic aside from the only wherein the purchaser agency is based, usually to take gain of decrease exertions costs.
While there are numerous approaches leaders can manipulate extrade, a number of the excellent extrude control techniques include planning, transparency and honesty, communication, and worker participation.
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a partnership agreement provides that, at sale, cash proceeds are distributed first to mr. smith in an amount equal to his original investment less any cash distributions previously received, then split 50-50 between mr. smith and ms. jones. assume that the cash flows from sale are $1 million. how much would mr. smith receive if his initial investment was $400,000 and he previously received $25,000 in distributions?
Mr. Smith would receive $425,000 if his initial investment was $400,000 and he previously received $25,000 in the distributions.
What is an investment?Investment is the commitment of money toward the purchase of a good with the expectation that its value will increase over time. To invest, one must give up a current resource, such as time, money, or effort. Profiting from the asset being financed is the aim of financial investment. The return could also include currency gains or losses brought on by changes in foreign exchange rates. Investors can typically expect higher returns on riskier investments. When making a low-risk investment, the return is typically modest. High risk has a similar probability of occurrence as high losses. For investors, especially novices, diversifying one's portfolio is frequently advised. Diversification reduces overall risk, according to statistics.
Total recieved= 400000+25000=425000.
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crane company manufactures toasters. for the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity:
Sales (364,000 units) $4,371,000 Cost of goods sold 2,589,600 Gross profit 1,781,400 Operating expenses 841,750 Net income $939,650 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.
In September, Crane receives a special order for 18,600 toasters at $7.95 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs.
(a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
RejectOrder Accept Order Net Income Increase (Decrease) Revenues $enter a dollar amount $enter a dollar amount $enter a dollar amount Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount Operating expenses enter a dollar amount enter a dollar amount enter a dollar amount Net income $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount
(b) Should Crane accept the special order?
Crane Company select an option should rejectshould accept the special order.
A tool for making decisions, incremental analysis compares the cost and revenue differences of two or more options to determine which one is best.
Details Reject order (A) Accept order (B) Increase or decrease in net income (C = A + B) Revenues 0 175,392 175,392 Cost of goods sold 0 -116,640 -116,640.
How Does Incremental Analysis Work?
In business, incremental analysis is a method for determining the true cost difference between alternatives.The incremental analysis, also known as the relevant cost approach, marginal analysis, or differential analysis, does not take into account any sunk costs or costs that have already been paid.
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A curve which shows the quantities of output that can be obtained from different quantities of a variable factor of production, assuming other factors of production are fixed, is called the _______ curve.
A) total input
B) marginal input
C) total product
D) average total quantity
A curve which shows the quantities of output that can be obtained from different quantities of a variable factor of production, assuming other factors of production are fixed, is called the _C) total product_ curve.
What are the production factors ?
In economics, the resources that people use to produce goods and services are referred to as factors of production; they form the basis of the economy. The four categories of factors of production that economists distinguish between are land, labor, capital, and entrepreneurialism.
The four factors of production are explained in detail and with examples in this episode of our Economic Lowdown podcast series. You can read more in the transcript below or listen to the audio.
The resources that make up the foundation of the economy and are used by people to produce goods and services are called factors of production.
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which theorem states that exchange rates will adjust until the prices of goods in different countries approximate one another?
Purchasing power parity states that exchange rates will adjust until the prices of goods in different countries approximate one another.
A country's currency would need to be converted at the purchasing power parity (PPP) exchange rate in order to purchase the same quantity of goods and services in both countries.
Exchange rates for PPP are largely consistent over time. Market rates, on the other hand, are more erratic, and utilizing them could lead to rather significant fluctuations in overall growth measurements—even when growth rates in particular countries are consistent. The fact that market-based rates only apply to items that are traded abroad is another disadvantage. Non-traded goods and services are typically more affordable in low-income countries than in high-income ones.
A haircut costs more in New York than in Lima, a cab trip costs more in Paris than in Tunis, and cricket game tickets are more expensive in London than in Lahore. Indeed, since salaries in underdeveloped nations are typically lower and services frequently require a lot of labour,
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You would want your financial planner to provide you with an investment policy statement that details your investment philosophy, your financial situation, and the risks you are willing to take, as well as what the advisor will do for you. TRUE
FALSE
The statement 'You would want your financial planner to provide you with an investment policy statement that details your investment philosophy, your financial situation, and the risks you are willing to take, as well as what the advisor will do for you' is true.
In the field of business, a financial planner can be described as a financial advisor who provides deep insight into the finances of a person and guides the client based on his revenue.
A client expects that a financial planner will develop an investment policy statement that will help to understand the investments that will be valuable.
A financial planner also assesses the risks that a client wants to take with business and whether they will be valuable or not.
A financial planner also gives a detailed view of how he will help the client with finances.
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how do you become popular
Answer:
Spread the word; advertisements
Explanation:
In order to get popular you need to spread the word about your business, you needadvertisementst,s and sometimes even create your own website. Some website makers include Wix.
If marketing attains its goal at the expense of rising production costs for the manufacturing department, the end result of marketing's achievements and manufacturing's cost increases reflects
B) suboptimization.
If marketing attains its goal at the expense of rising production costs for the manufacturing department, the end result of marketing's achievements and manufacturing cost increases reflects suboptimization.
Suboptimization is a discounted degree of output that consequences from an inefficient or useless system or system. Suboptimization also can get up from a focal point on optimizing a unit of an enterprise in preference to the effects of the complete enterprise. The precept of suboptimization affords the idea of a link between organizational structure and the regulations followed.
Optimization of the desires of different departments of the whole enterprise. Suboptimization takes place whilst different subunits try and reach a solution this is superior for that unit, however that may not be optimal for the employer as a whole.
For an instance, the fine control department of a manufacturing facility may also want to introduce an application that will assure that each bulb that is produced is the best. but, the higher price and the resulting excessive charge would lead to a disaster for the overall enterprise in the form of lower sales.
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Reinforcement theory attempts to explain behavior change by suggesting that behavior with negative consequences tends to be repeated, whereas behavior with positive consequences tends not to be repeated.
Group startsTrue or False
True, unselectedFalse, unselected
Group ends
the behavior that results in positive consequences is more likely to be repeated than behavior that results in negative consequences. Behavior modification is the process of altering human behavior using the reinforcement theory.
modification of behavior
Behavior modification is a psychotherapeutic strategy primarily employed to stop or lessen inappropriate behavior in both children and adults. While some therapies, like cognitive behavioral therapy, concentrate on altering thought patterns that can influence behavior, behavior modification focuses on altering specific behaviors with little regard for a person's thoughts or feelings. It is possible to gauge and assess the intervention's development and results. It is important to conduct a functional analysis of the causes and effects of the problematic behavior(s). As a result, specific target behaviors are developed, which will serve as the change's focal point. Then, certain factors can be changed through rewards and penalties to alter problematic behavior.
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if we are given an interest rate quoted on a bank discount basis for a particular money market instrument, then we can calculate the price of that instrument using the discount yield, the days to maturity divided by 360, and the
if we are given an interest rate quoted on a bank discount basis for a particular money market instrument, then we can calculate the price of that instrument using the discount yield, the days to maturity divided by 360, and the face value.
How would you define a money market instrument?Interbank loans (loans between banks), money market mutual funds, commercial paper, Treasury bills, securities lending and repurchase agreements, as well as markets for bank accounts, including term certificates of deposit, are examples of financial instruments that are part of money markets (repos).
Who employs instruments of the money market?Dealing in debt with a maturity of less than one year is referred to as the money market. Governments, businesses, and investors typically use it to maintain a regular flow of cash while making a small profit.
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10.what report provides assurance that columbia sportswear company’s financial statements are ""fairly stated""?
According to the Columbia Sportswear Company's financial report, Deloitte & Touche is the organization's independent auditor of the financial accounts.
What are financial statements, and what are some examples?Financial statements are records of a company's financial position and operations during a certain time period. A company's financial health and success are shown in financial statements. The three main financial statements are the cash flow statement, balance sheet, and income statement.
The most important financial statement is which one?The income statement is probably the most important financial statement for the majority of consumers since it demonstrates a company's potential for profitability. In addition, the income statement's data is primarily expressed in current dollars, which shows a decent degree of accuracy.
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in the management in action case, it was mentioned that fluctuating oil prices significantly impacted shale oil companies' income statements and balance sheets. which balanced scorecard perspective are these statements related to?
The activities and financial success of a firm are detailed in financial statements.
What are the three financial statements?The income statement, balance sheet, and statement of cash flows are financial statements that must be submitted. Traders can use these three statements as learning resources to evaluate a company's financial standing and swiftly ascertain its underlying value.
Three categories of finance exist: personal, business, and public/government.
What function do financial statements fulfill?Thanks to the financial statements that provide details about a company's operations, performance, and cash flow, its financial health may be viewed at a glance. Financial statements are essential since they provide information on a company's earnings, costs, profitability, and debt.
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How is the marketing department involved in the technical and marketing development stage of the product development process?.
To determine the best marketing strategy for the new product, they test product prototypes on their intended audience.
What is marketing strategy?By utilizing marketing tactics, businesses can focus their limited resources on the most promising opportunities to increase sales and achieve a competitive advantage. In the 1970s and 1980s, strategic marketing emerged as a separate field of study, building on strategic management. Using resources and skills within a company, marketing strategy stresses the role of marketing as a conduit between a company and its clients in order to acquire a competitive advantage. The phrases "strategic" and "managerial" marketing are used to differentiate "two phases with different goals and based on different conceptual tools." Strategic marketing refers to the process of choosing strategies to improve a company's competitive position while taking into account the opportunities and challenges given by the competitive environment.
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jennifer did not pay her flashcard bill in full in september. her october bill showed a finance charge, and she wants to see whether or not it is correct. the average daily balance is $970.50, and the apr is 15.6%. find the finance charge for her october statement.
The finance charge for her october statement is $12.6165.
What is Finance charge?A finance charge is a fee incurred while borrowing money or extending credit that has already been granted. Finance costs can be calculated using a set rate or a percentage of borrowings. The second option is more usual. A finance charge is usually made up of the cost of maintaining the debt as well as any related processing fees, account management costs, or late fees imposed by the lender.
Government regulation covers finance costs. All interest rates, regular fees, and penalty fees must be notified to the consumer in accordance
with the federal Truth in Lending Act.
Finance charge = Average daily balance × monthly periodic rate.
where,
Monthly periodic rate = APR / 12 months
Monthly periodic rate = 15.6% / 12
= 0.156 / 12
= 0.013
Finance charge = $970.50 × 0.013
= $12.6165
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changes in the interest rate a. shift aggregate demand whether they are caused by changes in the price level or by changes in fiscal or monetary policy. b. shift aggregate demand if they are caused by changes in the price level, but not if they are caused by changes in fiscal or monetary policy. c. shift aggregate demand if they are caused by fiscal or monetary policy, but not if they are caused by changes in the price level. d. do not shift aggregate demand.
Changes in the interest rate Shift aggregate demand if they are cause by fiscal or monetary policy, but not if they are caused by changes in price level. Option C
What causes the changes in the interest rate?The supply and demand of credit affect interest rate levels; higher or lower levels of demand for credit will result in higher or lower interest rates, respectively.
To maintain stability and liquidity in the economy, central banks adjust short-term interest rates upward or downward. The demand for 10- and 30-year U.S. Treasury notes has an impact on long-term interest rates. Rates are managed by retail banks based on the market, their operational requirements, and specific clientele.
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A foreign subsidiary of Thun Corporation has one asset (inventory) and no liabilities. The functional currency for this subsidiary is the yuan. The inventory was acquired for 100,000 yuan when the exchange rate was $0.16 = 1 yuan. Consolidated statements are to be produced, and the current exchange rate is $0.12 = 1 yuan. Which of the following statements is true for the consolidated financial statements?
Multiple Choice
A remeasurement gain must be reported.
A positive translation adjustment must be reported.
A negative translation adjustment must be reported.
A remeasurement loss must be reported.
A negative translation adjustment must be reported is true for the consolidated financial statements.
Financial statements are the information of a company's economic situation and sports for the duration of a length of time. Financial statements display the economic overall performance and power of a company. The 3 middle economic statements are the profits statement, stability sheet, and coins float statement.
Financial statements offer a photo of a corporation's economic health, giving perception into its overall performance, operations, and coins float. Financial statements are important considering they offer statistics approximately a company's revenue, expenses, profitability, and debt. Financial statements are written information that bring the commercial enterprise sports and the economic overall performance of a company.
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question content area employers are required to withhold which of the following taxes from employees? a.federal unemployment tax b.state unemployment tax c.fica tax d.fica tax and state and federal unemployment taxes
The area employers are required to withhold the FICA tax from the employees that is option B is correct.
FICA is referred to as the Federal Insurance Contributions Act and the tax is known as the FICA tax. It includes all the social security and the Medicare taxes that any individual has to pay. FICA taxes are reemitted from the pay of the employees working in any organization by the employer because this tax is paid the employer on the collective basis on behalf of all the employees by the employer to the government. This is the reason why the FICA tax is withholded from the income of the employees as the withholding tax is paid by the employers on behalf of the employees.
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Which of these might cause the value of inventory to fall below its original cost? (Check all that apply.)
a. decrease in gross profit
b. damage
c. increased competition
d. obsolescence
Damage, increased competition and obsolescence might cause the value of inventory to fall below its original cost.
Original cost is the total cost incurred when an asset was purchased. When calculating an asset's original cost, all of the costs associated with buying and using the asset are taken into account. Included in these expenses are the purchase price as well as things like commissions, shipping, appraisals, warranties, installation, and testing. Equipment, real estate, and security instruments are all examples of asset types that can be valued using original cost.
When figuring out an asset's tax basis, knowing the original cost is crucial. An asset's initial cost is greater than its purchase price, and the sum of its initial costs can lower the potential taxable gain on its sale.
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