Answer:
[tex]Tax = \$14459.5[/tex]
Explanation:
The question has a lot of confusing and unclear details. I will just answer the part that requests for the amount of tax to be paid by the single person given the taxable income of $65,725
Given
[tex]Taxable\ Income = \$65725[/tex]
Status: Single
Required
Determine the tax amount
For a single person whose taxable income is within the range of $39,476 - $84,200, the tax is 22% of the taxable income.
So, we have:
[tex]Tax = 22\% * Taxable\ Income[/tex]
[tex]Tax = 22\% * \$65725[/tex]
[tex]Tax = 0.22 * \$65725[/tex]
[tex]Tax = \$14459.5[/tex]
Answer:
The right answer is 12,170.
Explanation:
i just took the test.
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000.
1. Calculate Roquan's deduction for qualified business income.
2. Assume the same facts as earlier, except Roquan's taxable income before the deduction for qualified business income is $300,000.
Answer:
A. $18,000
B. No QBI deduction
Explanation:
a) Calculation for Roquan’s deduction for qualified business income.
Using this formula
Roquan's qualified business income.
= 20% x QBI
Let plug in the formula
Roquan's qualified business income
= 20% x $90,000
Roquan's qualified business income= $18,000
Therefore Roquan’s deduction for qualified business income will be $18,000
b) Based on the information given if we assumed that Roquan's taxable income before the deduction for qualified business income is the amount of $300,000 which means that Roquan's income is higher than the amount of $213,300 hence, NO qualified business income deduction (QBI) will be allowed.
what are the five economic lssues??
Answer:
Economic issues facing the world economy, as well as regions and countries, include prospects for growth, inflation, energy and the environment, inequality, labor issues, emerging markets, and the impact of new technologies.
Selected balance sheet and income statement information for EKG Corporation and AMP Company follows ($ millions). Company EKG Corp AMP Company 2017 Sales $37,006 47,409 2017 NOPAT $1,292 1,716 2017 Net Operating Assets $10,007 8,781 Compute the 2017 net operating asset turnover (NOAT) for each company. A) EKG NOAT: B) AMP NOAT: Page 7 of 17 2016 Net Operating Assets $9,437 7,818
Answer:
See below
Explanation:
Net operating asset turnover ratio is computed as;
= Net sales / Average net operating assets
Company EKG Corp.
Net operating asset turnover ratio = $37,006 / [($1,292 + $10,007)/2]
= $37,006 / $5,650
= 6.55
Corp AMP Company
Net operating asset turnover ratio = $47,409 / [($1,716 + $8,781)/2]
=$47,409 / $6,107
= 7.76
A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?
$220,000
Explanation:
Calculation for the company's break-even point in dollar sales
Using this formula
Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin
Let plug in the formula
Break-Even point in dollars sales=$96,800/44%
Break-Even point in dollars sales=$220,000
Therefore the company's break-even point in dollar sales will be $220,000.
The Perfect Haircut: Consumers' Search Process
Two consumers are searching for new hair salons and have very different belief systems and needs that affect the way they search for information.
The second step in the consumer decision process, after a consumer recognizes a need, is to search for information about various options that exist to satisfy that need. The length and intensity of the search are based on the degree of perceived risk associated with purchasing the product or service.
Read each statement when it appears and place the activity in the correct box in the chart.
Effortless, Worth the Money, Expensive Service, Salon of Choice, Unimportant, Tight Budget, Could Damage Career, All the Same, Salon of Convenience, Personal Image
Joleen Jones Ginger Petri
Performance Risk
Financial Risk
Psychological Risk
Internat vs External Search for Information
Benefits vs Costs
Answer:
Explanation:
✓Performance Risk
1)Could Damage Career
2)All the same
✓Financial Risk ( risks that could be attributed to finance, i.e money)
1)Tight budget
2)Expensive Service
✓Psychological Risk
1)Unimportant
2)Personal Image
✓Internal vs External ( ways to get access to information)
1)Salon of Convenience
2)Salon of Choice
✓Benefits vs Costs
1)Worth the Money
2)Effortless
assume the cost of a college education would be to 325,000 when your child enters college 17 years. You presently have $51,000 to
Answer:
11.51 %
Explanation:
The computation of the interest rate is shown below:
As we know that
Amount = P (1 + rate)^number of years
$325,000 = $51,000 (1+r)^17
(1+r)^17 = $325,000 ÷ $51,000
(1+r)^17 = 6.372549
(1+r) = (6.372549)^1 ÷ 17
1 + r = 1.115097
r = 1.115097 - 1
r = 0.115097
= 11.51 %
ABC Co. has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of $10. Beginning receivables for the quarter amount to $35. Sales for the first and second quarters are expected to be $110 and $125, respectively, while purchases amount to 80% of the next quarter's forecast sales. The accounts payable period is 90 days. What is the ending cash balance for the first quarter
Answer:
hile purchases amount to 80% of the next quarter's forecast sales. The accounts payable period is 90 days. What is the ending cash balance for the first quarterResearch about Alexander Hamilton Maria Reynolds Scandal.Djiboli Rapper is bad, followed by its level and its intention.
There is no one Jibouli of us who follows his intention.
With the group
You don't get like godfather in rap.
Seriously, and what I perfect from my childhood, I fell in love with rap.
I became a rap artist.
I burned for most of the rap.
I suffered in my life and patience Lynn Masmni Godfather.
.
Anyone has any right to philosophize and say how is his guardian.
I love the art of rap
I am a fan of the art of rap
I woven it for rap
So they called me the godfather
I am the one who opened this door and opened people's eyes to it
Anybody's money any right to philosophize and tell how his guardian
I hear about young people wearing their heads down
And whoever prevents me from hurting them and turning their lives into misery
On the day I ask about them, I want to sing them. I want to know who they are.
If I extend my hand on him, his tears will fall before the palm
I ask about his past, they tell me he was sniffing
Ok, in this case I do not respond to the same quality
A little chickens shout that you don't get any harm
I know hypocritical people hand out smiles
In my face when they meet me loudly laughing
Open your mouth at the end and laugh, I mean, you became my friend
Huh
I think you count my mind by intentions
Wind your face muscles do not smile much
Do not be deceived that I am a young man in front of you
I am over with the hawks. Mali is the chicken sitting
And the falcon empty a falcon is not as well as what we need
After the incarceration, my darling, my eyes changed the perception that a friend is a friend
And I understood my life as a lesson, no one who said I am your brother, I mean, I have no
The first of them are the people who disappeared from my detention
I will not hold and do the same as some people
Sell me Sabouni, I love to knock the head off
If my life passed a mistake I will not regret it
But he took it as a lesson in my life and made it a basis for meساعات أجلس لحالي أقعد فيها أفكر.
أتذكر أشياء كثيرة كنت فيها معاك مقصر.
اتندم على كل لحظة ذرفتي فيها علشاني الدمعة.
علقتي فيا آمالك كنتي تقيدي في دربي الشمعة.
يا عمري أبغاك تكون.
أحسن واحد في الكون.
وهذا كلامك لي ولجل عيونك أحاول إني أكون.
حبيبتي اسمعيني.
حطي عينك في عيني.
أنا عند حسن ظنك مع الأيام بتشوفيني.
الإنسان اللي تمنيته.
على كثر أغلاطه تحملتيه.
صدقيني يالعزيزة انه يحبك زي مانتي تحبيه.
أمانة ما أبغى أشوفك زعلانة مني في يوم.
ما أبغى أشوف قلبك مهموم.
لأنك بالنسبة لي أنت الحب الحقيقي.
ما أتوقع من غيرك أقدر أكمل طريقي.
كل همك في الدنيا إنك تشوفيني في القمة.
A factory machine was purchased for $385000 on January 1, 2021. It was estimated that it would have a $78000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 38000 hours in the 5 years. The company ran the machine for 3800 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be
Answer:
$30,700
Explanation:
Calculation for what the amount of depreciation expense for 2021 would be
Depreciation expense for 2021 =[($385,000 - $78,000) ÷ 38,000] × 3,800
Depreciation expense for 2021 =($307,000÷38,000)×3,800
Depreciation expense for 2021 =8.078947369×3,800
Depreciation expense for 2021 =$30,700
Therefore the amount of depreciation expense for 2021 would be $30,700
A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $59,000 for Memphis, $69,000 for Biloxi, and $104,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $5 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $58,000 per year, the Biloxi location by $68,500 per year, and the Birmingham location by $25,400 per year. Expected annual volume is 14,400 units.
Answer:
Total cost for a location = Annual costs for building, equipment, and administration + Labor and materials cost per unit*expected annual volume + Increase in transportation costs
Total cost for Memphis location = $59000 + $7*14400 + $58000
Total cost for Memphis location = $217,800
Total cost for Biloxi location = $69000 + $5*14400 + $68500
Total cost for Biloxi location = $209,500
Total cost for Birmingham location = $104000 + 5*14400 + $25400
Total cost for Birmingham location = $201,400
So, Birmingham location gives the lowest Annual Total Cost.
Consumers spend _______ a year on credit card penalties and fees.
$10 million
$110 billion
$90 billion
$80 million
Consider an organization that has empowered its employees, asking them to improve the quality, productivity, and responsiveness of their processes that involve repetitive work. This work could arise in a manufacturing setting, such as assembling cars or producing chemicals, or in a service setting, such as processing invoices or responding to customer orders and requests. Clearly the workers would benefit from feedback on the quality (defects, yields) and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve quality, productivity, and process times. Be specific about the types of financial information that would be helpful and the specific decisions or actions that could be made better by supplementing physical and operational information with financial information.
Answer:
Follows are the solution to this question:
Explanation:
In this question, one of the biggest factors in a company is the employee's wealth, and by evaluate the figures in the financial reports about trends, because then workers know clearly how their job impacts the progress of the company.
It offering information on the non-specific regular costs of business, and by try giving the issue a simple approach is to make the employees fully comprehend it. Finally but not least, the position of the employees throughout the company's general profitability.
Its provision of such knowledge will certainly improve productivity ultimately the quality.
An Energy Star air conditioner unit costs $300 while a standard unit costs $200. The two units have the same cooling capacity. The Energy Star unit costs 5 cents per hour less to run. If you buy the Energy Star unit and run it for 12 hours per day for 6 months of the year, how long does it take to recover the $100 extra cost
Answer: 167 days
Explanation:
Energy star unit saves 5 cents per hour.
When run for 12 hours per day it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
Days it will take for $100 to be recovered:
= 10,000 / 60
= 166.67 days
= 167 days
In 6 months you would have saved:
= 60 cents * 180 days
= 10,800 cents
= $108
It will take a period of 167 days to recover the $100 extra cost.
Energy star unit saves 5 cents per hour and when its run for 12 hours per day, it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
The number of days it will take for $100 to be recovered:
Days = 10,000 / 60
Days = 166.67 days
Days = 167 days
In 6 months you would have saved::
Saved amount = 60 cents * 180 days
Saved amount = 10,800 cents
Saved amount = $108
In conclusion, It will requires a period of 167 days to recover the $100 extra cost.
Read more about extra cost
brainly.com/question/26106161
Suppose that your marginal federal income tax rate is 40%, and the yield on thirty-year U.S. Treasury bonds is 4.5%. You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of Group of answer choices 10.0%. 2.8%. 1.8%. 2.7%.
Answer:
2.7%
Explanation:
Calculation for the municipal bond yield
Municipal bond yield=(1-.4)*0.045
Municipal bond yield=.6*.045
Municipal bond yield=0.027*100
Municipal bond yield=2.7%
Therefore based on the information given You would be indifferent between buying a thirty-year treasury bond and buying a thirty- year municipal bond issued within your state if the municipal bond has a yield of 2.7%
The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. a. Materials fill in the blank 0405c7fed078fd8_2 fill in the blank 0405c7fed078fd8_3 Accounts Payable fill in the blank 0405c7fed078fd8_5 fill in the blank 0405c7fed078fd8_6 b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank. b. fill in the blank 6c73b5f42041fa9_2
Answer:
Note: The missing question is attached as picture
a. Accounts title & Explanations Debit$ Credit$
Material inventory 641,200
($122,700+$170,600+$336,200+$11,700)
Accounts payable 641,200
(For material purchased on account)
Note: Both, Direct material and Indirect material is included in Materials
b. Accounts title & Explanations Debit$ Credit$
Work in process inventory 652,300
($233,700+$211,300+$136,200)
Manufacturing Overheads 6,100
Material inventory 658,400
(For material issued for production both as direct and indirect material)
Note: Requisition of direct materials are charged to WIP and requisition of indirect materials forms part of factory overhead.
An argument that opposes the idea of high executive pay is: ___________
a. High salaries provide an incentive for innovation and risk-taking.
b. Not many individuals are capable of running today's large, complex organizations.
c. Top athletes and entertainers make a lot of money, so top executives should, too.
d. High salaries divert resources that could be used to invest in the business.
Answer:
D
Explanation:
when pay becomes high with respect to several executives or just one, the resources and expense needed to keep the business growing....will be shortened
The police need to have _____ to obtain a search warrant.
absolute certainty
a mere suspicion
no reason
probable cause
Answer:
PROBABLE CAUSE
Explanation:
A large technology Company decides to create an entrepreneurship friendly space, where small enterprises can operate in close proximity to one another. To create this space, which will be called Zone Forty-Two, the Company will construct office space, which will be rented to tenants for free. The Company is considering two start-up firms, B Enterprises (a business software producer) and M Enterprises (a medical software producer). Both firms are currently located in different small towns of California, where they work out of their homes hence pay no rent. The sales volume for a firm if it locates at Zone Forty-Two depends on whether the other firm is also present. These sales volumes, along with the firms’ sales at their current home locations, are presented in Table 1.
table 1 home- town locations zone forty-two(alone) zone forty-two(with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
Give an intuitive explanation why the sales figures are in the last column of Table 1 differ from the first two columns of the table. Hint: Elaborate on different types of economies that are likely to benefit firms locating next to each other in Zone Forty-Two.
Answer:
Zone-Forty-Two
Types of Economies Benefiting Firms Locating Next to Each Other:
Basically, internal and external economies of scale result from firms locating next to one another. While internal economies of scale are specific to a firm because they are internally generated savings, external economies of scale bring about larger changes outside the firm so that all the firms that are located next to one another benefit.
For example, when firms locate next to each other, there is increased procurement management, availability of specialized managers, availability of financial sources, and market improvement. These are internally-focused economies.
On the other hand, the external benefits that come from agglomeration of firms include the availability of common infrastructure, supply chain, innovation and ideas, and ability to lobby the authorities.
As a result of these economies or benefits, firms b and m enterprises are able to generate more increased sales as they locate close to each other at Zone Forty-Two than they could generate while they were located at their home-towns or alone at Zone Forty-Two.
Explanation:
a) Data and Calculations:
Firms' Sales
Firms Hometown Zone forty-two Zone forty-two
locations (alone) (with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
These economies resulting from proximate locations of firms include the growth of technical, marketing, commercial, financial benefits, and some network effects. Therefore, it is always interesting to study how firms grow more as they compete and learn from one another than they do when they dominate their individual hometown markets.
THE
Guy Zone
Janna and her friend Leah both work for telecommunications companies. One night over
dinner, they discuss some new product ideas they think would be successful in their industry.
Janna has a great idea that Leah loves. The next week, Leah presents the idea to her manager
who says he will consider taking it to the next new-product committee meeting. Was Leah's
action ethical? Do you consider this to be "stealing the idea from her friend?
Answer:
Leah should ask from Janna before he discusses the idea with his manager.
Explanation:
Leah action is not ethical since it was Janna idea and Leah presented to his manager as if it is his idea. Janna and Leah both are in same industry so if Leah promotes the Janna idea to his manager his company will be more successful than Janna. Leah should have taken permission from Janna before discussing the idea with his manager.
Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars)
Year 2 Year 1
Net Sales 3,175 2,500
Operating costs except depreciation and amortization 1,120 1,040
Depreciation and amortization 159 100
Total Operating Costs 1,279 1,140
Operating Income (or EBIT) 1,896 1,360
Less: Interest 256 109
Earnings before taxes (EBT) 1,640 1,251
Less: Taxes (40%) 656 500
Net Income 984 751
Calculate the profitability ratios of Diusitech Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places.
Ratio Value
Year 2 Year 1
Operating margin 75.20%
Profit margin 40.14%
Return on total assets 17.18%
Return on common equity 32.30%
Basic earning power 26.13%
Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply.
a. A higher operating margin than the industry average indicates either lower operating costs, higher product pricing, or both.
b. If a company’s operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.
c. An increase in the return on assets ratio implies an increase in the assets a firm owns.
d. If a company issues new common shares but its net income does not increase, return on common equity will increase.
Answer:
Year 1
Profit Margin = Net Income / Net Sales
Profit Margin = $751 / $2,500
Profit Margin = 0.3004
Profit Margin = 30.04%
Basic Earning Power = Operating Income / Total Assets
Basic Earning Power = EBIT * Return on Total Asset / Net Income
Basic Earning Power = $1,360 * 17.18%/751
Basic Earning Power = 0.311115846
Basic Earning Power = 31.11%
Year 2
Operating Margin = Operating Income / Net Sales
Operating Margin = $1,896 / $3,175
Operating Margin = 0.5971653543307087
Operating Margin = 59.72%
Return on Total Assets = Basic Earning power * Net Income/EBIT
Return on Total Assets = 26.13% * $984/$1,896
Return on Total Assets = 0.1356113924050633
Return on Total Assets = 13.56%
Return on Common Equity = Net Income / Total Common Equity
Return on Common Equity = $984 / ($751/32.30%)
Return on Common Equity = $984 / $2325.08
Return on Common Equity = 0.42321124
Return on Common Equity = 42.32%
Sweet Company manufactures equipment. Sweet’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Sweet has the following arrangement with Winkerbean Inc.
● Winkerbean purchases equipment from Sweet for a price of $930,000 and contracts with Sweet to install the equipment. Sweet charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Sweet determines installation service is estimated to have a standalone selling price of $46,000. The cost of the equipment is $560,000.
● Winkerbean is obligated to pay Sweet the $930,000 upon the delivery and installation of the equipment.
Sweet delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
How should the transaction price of $930,000 be allocated among the service obligations?
Equipment $
Installation $
Prepare the journal entries for Sweet for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Sweet receives payment when installation is completed.
Answer:
Equipment:
= Fair value of Equipment / Total fair value * Transaction price
= Fair value of Equipment / (Equipment+Installation) * Transaction price
= $930,000 / ($930,000+$46,000) * $930,000
= $886,168.03
Installation:
= Fair value of Installation / Total fair value * Transaction price
= Fair value of Installation / (Equipment+Installation) * Transaction price
= $46,000 / ($930,000+$46,000) * $930,000
= $43,831.97
Thus, the transaction price of $930,000 allocated to Equipment is $886,168.03 and $43,831.97 to Installation
Date Account Titles and Explanation Debit Credit
June 1 Account receivable $930,000
Sales revenue $886,168.03
Unearned service revenue $43,831.97
(To record the sales of equipment including installation to W)
June 1 Cost of goods sold $560,000
Inventory $560,000
(To record the cost of equipment sold)
Sep 30 Unearned service revenue $43,831.97
Service revenue $43,831.97
(To record the revenue on installation of equipment)
Sep 30 Cash $930,000
Account receivable $930,000
(To record the receipt of cash flow from W)
New technology: Group of answer choices seldom contributes to competitive advantage or operational efficiency. frequently enables competitive advantage from product/service differentiation at lower cost. seldom enables competitive advantage from product/service differentiation at lower cost. frequently enables competitive advantage from product/service differentiation, but typically at higher cost. frequently enables operational efficiencies, but seldom enables competitive advantage.
Answer:
frequently enables competitive advantage from product/service differentiation at lower cost.
Explanation:
According to economic theory, technology is one of the factors that contributes to economic growth.
It also increases the competitive advantage of a firm by increasing the amount of goods that can be produced and also increases the quality of the output.
Differentiation is achieved at a lower cost.
Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.
Answer:
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
31-Dec
Dr Interest receivable $1,750
Cr Interest revenue $1,750
31-Dec
Dr Deferred Revenue $4,000
Cr Revenue or Service Revenue $4,000
Explanation:
Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
(Being to adjust 12 month depreciation)
31-Dec
Dr Interest receivable ($50,000 x 7% x 6/12) $1,750
Cr Interest revenue $1,750
(Being to adjust 6 month interest revenue accrued)
31-Dec
Dr Deferred Revenue ($16,000 x 3/12) $4,000
Cr Revenue or Service Revenue $4,000
(Being to record earned revenue for 3 months)
Kyle had a splitting headache. His buddy Cyrus gave him a couple of lime-green pills to take away the pain. When Kyle awoke, Cyrus was lying next to him in a pool of blood. If Kyle is tried for a crime, what could be his defense?
insanity
duress
intoxication
necessity
Answer:
necessity
Explanation:
This is necessity beause it might have been on accident to help cyrus but became a bloody murder,seems like a 3rd or a second degree murder,most likely 3rd degree,it just happend.
Answer:
C
Explanation:
bro read it and u'll know other person is wrong
We observe the following annualized yields on four Treasury securities: (75%)
Maturity (years) Yield-to-maturity (%)
0.5 4.00
1 4.50
1.5 5.00
2 5.50
The par is $1000 for all the securities. The one with 0.5-year to mature is a zero coupon bond. Al other securities are coupon-bearing bonds selling at par. Note that, for par bonds, the coupon rate equals YTM. (20 points)
1. Calculate the spot rates for the maturities of 0.5, 1, 1.5, and 2 years.
2. What is the price of a 2-year bond with an 8% annual coupon rate (assume $1000 par)?
3. Suppose a 1-year zero-coupon bond with a par value of S1000 is selling at $900. Is there any arbitrage opportunity? If there is, construct an arbitrage portfolio and show the profit.
4. Calculate the one-period-ahead forward rates from 0 to 0.5, from 0.5 to 1, from 1 to 1.5, and from 1.5 to 2.
5. One year from now, you plan to purchase a then one-year bond with a 1000 par and an 8% annual coupon rate. What is the expected price of the bond? Assume the expectation hypothesis holds. Under the expectation hypothesis, the expected future spot rate equals the forward rate.
Answer:
Explanation:
1.
From the given information;
The spot rate for maturity at 0.5 year [tex](X_1) = 4\%/2 = 2\%[/tex]
The spot rate for maturity at 1 year is:
= [tex]\dfrac{22.5}{(1+X_1)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1022.5}{(1+X_2)^2}=1000[/tex]
By solving for [tex]X_2[/tex];
[tex]X_2[/tex] = 2.253%
The spot rate for maturity at 1.5 years is:
[tex]= \dfrac{25}{(1+X_1)}+ \dfrac{25}{(1+X_2)^2}+ \dfrac{1000 + 25}{(1+X_3)^3}=1000[/tex]
Solving for [tex]X_3[/tex]
[tex]X_3[/tex] = 2.510%
The spot rate for maturity at 2 years is:
[tex]= \dfrac{27.5}{(1+X_1)}+ \dfrac{27.5}{(1+X_2)^2}+ \dfrac{27.5}{(1+X_3)^3} +\dfrac{1000+27.5}{(1+X_4)^4} =1000[/tex]
By solving for [tex]X_4[/tex];
[tex]X_4[/tex] = 2.770%
Recall that:
Coupon rate = yield to maturity for par bond.
Thus, the annual coupon rates are 4%, 4.5%, 5%, and 5.5% for 0.5, 1, 1.5, 2 years respectively.
2.
For n years, the price of n-bond is:
[tex]= \dfrac{cash \ flow \ at \ year \ 1}{1+X_1}+ \dfrac{cash \ flow \ at \ year \ 2}{(1+X_2)^2}+... + \dfrac{cash \ flow \ at \ year \ b}{(1+X_n)^n}[/tex]
Thus, for 2 years bond implies 4 periods;
∴
[tex]= \dfrac{40}{1+0.02}+ \dfrac{40}{(1+0.02253)^2} + \dfrac{40}{(1+0.0252)^3}+ \dfrac{40}{(1+0.0277)^4}[/tex]
= $1047.024
3.
Suppose there exist no-arbitrage, then the price is:
[tex]= \dfrac{0}{(1+0.02)}+\dfrac{1000}{(1+0.02253)^2}[/tex]
= 956.4183
Since the market price < arbitrage price.
We then consider 0.5, 1-year bonds from the portfolio
Now;
weight 2 × 1000 + weight 2 × 22.5 = 1000
weight 2 × 1022.5 = 1000
weight 2 = 1022.5/1000
weight 2 = 0.976
weight 1 + weight 2 = 1
weight 1 = 1 - weight 2
weight 1 = 1 - 0.976
weight 1 = 0.022
The price of a 0.5-year bond will be:
[tex]= \dfrac{1000}{(1+0.02\%)} \\ \\ =\mathbf{980.39}[/tex]
The price of a 1-year bond will be = 1000
Market value on the bond portfolio = 0.022 × price of 0.5 bond + 0.978 × price 1-year bond = 956.42
= 0.022 × 980.39 + 0.978 × 1000
= 956.42
So, to have arbitrage profit, the investor needs to purchase 1 unit of the 1-year zero-coupon bond as well as 0.022 units of the 0.5-year bond. Then sell 0.978 unit of the 1-year bond.
Then will he be able to have an arbitrage profit of $56.42
4.
The one-period ahead forward rates can be computed as follows:
Foward rate from 0 to 0.5 [tex]X_1[/tex] = 2%
Foward rate from 0.5 to 1
[tex](1+X_2)^2 = (1+X_1) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
[tex](1+0.0225)^2 = (1+0.02) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
Foward rate from 0.5 to 1 = 2.5%
Foward rate from 1 to 1.5
[tex](1+X_3)^3 = (1+X_2)^2 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
[tex](1+0.0251)^3 = (1+0.0225)^3 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
Foward rate from 1 to 1.5 =3.021%
Foward rate from 1.5 to 2
[tex](1+X_4)^4 = (1+X_3)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
[tex](1+0.0277)^4 = (1+0.0251)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
Foward rate from 1.5 to 2 =3.021%
5.
The expected price of the bond if the hypothesis hold :
= [tex]\dfrac{40}{1+ 0.03021}+ \dfrac{1000+40}{(1+0.03285)^2}[/tex]
[tex]= \dfrac{40}{(1.03021)}+ \dfrac{1040}{(1.03285)^2}}[/tex]
= 1013.724254
= 1013.72
A household consists of a married couple and their two-year-old daughter. The couple's daughter had no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the "Married filing jointly" status?
Answer:
3 is the answer
Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are included in the substantiation requirements?
Answer:
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
Explanation:
IRS guidelines available for automobile
deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.
The three items that are are included in the substantiation requirements are;
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
The journal entry to record the purchase of materials on account is a(n)
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
On January 1, Great Designs Company had a debit balance of $1,700 in the office supplies account. During the month, Great Designs purchased $1,000 of office supplies and journalized them to the asset account upon purchasing. On January 31, an inspection of the office supplies cabinet shows that only $600 of office supplies remains.
Required:
Prepare the January 31 adjusting entry for office supplies.
Answer:
See below
Explanation:
On Jan 1st
Office supplies balance $1,700
Purchases = $1,000
Balance in office supplies account = $1,700 + $1,000 = $2,700
Amount to be written off of office supplies = $2,700 - $600 = $2,100
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Answer:
Underapplied by $3,000
Explanation:
Calculation for what The Corporation's manufacturing overhead cost for the year was:
First step is to calculate the Predetermined Overhead rate
Predetermined Overhead rate=( $ 330,000/ 55,000)
Predetermined Overhead rate= $ 6 per labor hour
Now let calculate the Manufacturing overhead cost
Manufacturing overhead cost= (6 x 57 000)-$345,000
Manufacturing overhead cost=$342,000-$345,000
Manufacturing overhead cost=Underapplied by $3,000
Therefore The Corporation's manufacturing overhead cost for the year was:underapplied by $3,000