Answer: The correct answer is "a) true".
Explanation: In order for a taxpayer to deduct the loss of a commercial activity of which he is the owner, she must prove that she is materially involved in the conduct and direction of the business, since if she does not prove it, it is considered a passive activity from which she cannot deduct the loss.
Constance Hairston obtains a 20-year, $128,500 mortgage at 7% on a house selling for $128,500. Her monthly payment, including principal and interest, is $996.26. How much of the total cost will be interest?
Answer:
The total interest cost is 110, 602 dolars.
Explanation:
The total interest cost has been calculated below. The total interest cost is calculated by multiplying interest rate per month with outstanding loan balance.
Key
M means month there are 240 months in 20 years = 20 *12 =240
Os outstanding loan amount
P payment means monthly installment (principal + interest)
I mean interest per month (7%/12)
PP means payment towards principal
Bal outstanding loan balance = loan amount -principal paid
M OS P I pp Bal
1 128,500 996 749.58 246.68 128,253.32
2 128,253 996 748.144 248.12 128,005.21
3 128,005 996 746.697 249.56 127,755.64
4 127,756 996 745.241 251.02 127,504.63
5 127,505 996 743.777 252.48 127,252.14
6 127,252 996 742.304 253.96 126,998.19
7 126,998 996 740.823 255.44 126,742.75
8 126,743 996 739.333 256.93 126,485.82
9 126,486 996 737.834 258.43 126,227.40
10 126,227 996 736.326 259.93 125,967.46
11 125,967 996 734.810 261.45 125,706.01
12 125,706 996 733.285 262.97 125,443.04
13 125,443 996 731.751 264.51 125,178.53
14 125,179 996 730.208 266.05 124,912.48
15 124,912 996 728.656 267.60 124,644.87
16 124,645 996 727.095 269.16 124,375.71
17 124,376 996 725.525 270.74 124,104.97
18 124,105 996 723.946 272.31 123,832.66
32 120,145 996 700.843 295.42 119,849.18
180 51,011 996 297.567 698.69 50,312.80
181 50,313 996 293.491 702.77 49,610.03
182 49,610 996 289.392 706.87 48,903.16
183 48,903 996 285.268 710.99 48,192.17
184 48,192 996 281.121 715.14 47,477.03
185 47,477 996 276.949 719.31 46,757.72
186 46,758 996 272.753 723.51 46,034.21
187 46,034 996 268.533 727.73 45,306.49
188 45,306 996 264.288 731.97 44,574.51
189 44,575 996 260.018 736.24 43,838.27
190 43,838 996 255.723 740.54 43,097.73
191 43,098 996 251.403 744.86 42,352.88
192 42,353 996 247.058 749.20 41,603.68
193 41,604 996 242.688 753.57 40,850.10
194 40,850 996 238.292 757.97 40,092.14
195 40,092 996 233.871 762.39 39,329.75
196 39,330 996 229.424 766.84 38,562.91
197 38,563 996 224.950 771.31 37,791.60
198 37,792 996 220.451 775.81 37,015.79
199 37,016 996 215.925 780.33 36,235.46
200 36,235 996 211.374 784.89 35,450.57
201 35,451 996 206.795 789.47 34,661.11
202 34,661 996 202.190 794.07 33,867.04
203 33,867 996 197.558 798.70 33,068.33
204 33,068 996 192.899 803.36 32,264.97
205 32,265 996 188.212 808.05 31,456.92
206 31,457 996 183.499 812.76 30,644.16
207 30,644 996 178.758 817.50 29,826.66
208 29,827 996 173.989 822.27 29,004.39
209 29,004 996 169.192 827.07 28,177.32
210 28,177 996 164.368 831.89 27,345.43
211 27,345 996 159.515 836.74 26,508.68
212 26,509 996 154.634 841.63 25,667.06
213 25,667 996 149.725 846.54 24,820.52
214 24,821 996 144.786 851.47 23,969.05
215 23,969 996 139.819 856.44 23,112.61
216 23,113 996 134.824 861.44 22,251.17
217 22,251 996 129.799 866.46 21,384.71
218 21,385 996 124.744 871.52 20,513.20
219 20,513 996 119.660 876.60 19,636.60
220 19,637 996 114.547 881.71 18,754.88
221 18,755 996 109.403 886.86 17,868.03
222 17,868 996 104.230 892.03 16,976.00
223 16,976 996 99.027 897.23 16,078.76
224 16,079 996 93.793 902.47 15,176.30
225 15,176 996 88.528 907.73 14,268.56
226 14,269 996 83.233 913.03 13,355.54
227 13,356 996 77.907 918.35 12,437.18
228 12,437 996 72.550 923.71 11,513.47
229 11,513 996 67.162 929.10 10,584.38
230 10,584 996 61.742 934.52 9,649.86
231 9,650 996 56.291 939.97 8,709.89
232 8,710 996 50.808 945.45 7,764.44
233 7,764 996 45.293 950.97 6,813.47
234 6,813 996 39.745 956.51 5,856.96
235 5,857 996 34.166 962.09 4,894.86
236 4,895 996 28.553 967.71 3,927.15
237 3,927 996 22.908 973.35 2,953.80
238 2,954 996 17.231 979.03 1,974.77
239 1,975 996 11.520 984.74 990.03
240 990 996 5.775 990.48 -0.45
Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013 for $30,000. The company uses the straight-line method of computing depreciation, assuming a five year useful life and no salvage value. When recording the sale, the company should record a debit to Accumulated Depreciation for:
A) $51,000
B) $59,500
C) $68,000
D) Nothing; Accumulated Depreciation is not debited.
E) None of the above
Answer:
B) $59,500
Explanation:
The equipment was purchased for 85,000 and has no salvage value which means that all 85,000 will be depreciated over it lifetime. It has a life of 5 years and because it uses straight line method it means that it will depreciate equally each year. The equipment is bought on JAN 1 2010 and sold on July 1 2013 which means that the equipment is used for 3.5 years and in order to find its depreciation we will divide 3.5 by 5 and multiply it by 85,000.
3.5/5*85,000=59,500
Economists believe that the most important cause of the increase in income inequality is:
Answer:
Rapid technological change
Explanation:
Is important to remember that the technology and the science is the most important things in order to a country can progress.
Rapid technological change include a lot of factors such" special technologies like big data, data structures, Internet, machine learning, statistics, artificial intelligence, robotics, 3D printing, biotechnology, nanotechnology, renewable energy technologies, satellite, drone, manufacturing and production technologies".
And is the most important cause of increase income inequality because if we don't have advanced technology the processes are slow and the production is lower compared with a place with advanced technology and proccesses.
An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees?A. $5,000B. $10,000C. $60,000D. $75,000
Without specific policy details on landscape coverage, it's challenging to determine the exact reimbursement for trees destroyed by fire under a homeowner's insurance policy. General policies often have a capped amount for landscaping, which could influence the payout for the 10 destroyed trees, valued at $600 each.
Explanation:The question asks how much a special form dwelling policy will pay for trees that were killed in a fire, given specific damage amounts to a dwelling and a separate garage. Without specifics in the provided information about policy limits for landscape features such as trees, general home insurance policies often have a capped amount they will pay for damage to trees, shrubs, and other landscaping per event. Typically, this is up to 5% of the dwelling coverage for all trees, shrubs, plants, or lawns, and there is usually a per item limit as well. If we assume a typical policy structure and knowing the trees valued at $600 each, with 10 trees totaling $6,000 in value (assuming none of the other damages affect the landscaping coverage limits), without explicit limits provided, one cannot definitively answer the question. However, it's common for policies to have a limit per tree, sometimes around $500, but this can vary significantly by policy.
Qualified Retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following items must be included in the Investment Policy Statement EXCEPT:
[A] the client/participants investment goals and objectives
[B] risk tolerance and liquidity requirements of the client/participant
[C] time horizon
[D] a list of the actual securities in the portfolio
Answer:
D: a list of the actual securities in the portfolio
Explanation:
Under Employee Retirement Income Security Act of 1974 (ERISA) interpretations, the details of risk, time horizon, target asset mix, investment goals and objectives, and guidelines for review are among the items which must be disclosed in the statement. A list of the specific investments in the plan is not a required disclosure.
Many borrowers defaulted on subprime mortgages ultimately disrupting financial markets by August 2007. Which of the following is a likely result of this increase in financial frictions? A. The AD curve likely did not shift B. B. The AD curve likely shifted left which caused an upward movement along the MP curve to a higher general equilibrium interest rate C. The AD curve likely shifted left which caused a positive inflation gap D. The AD curve likely shifted left which caused a negative output gap E. none of the above
Answer:
A. the AD curve likely did not shift B
Explanation:
Defaults on subprime mortgages hurts autonomous consumption levels for borrowers, which causes the IS and AD curves to shift left. These defaults also likely increased financial frictions as lending institutions would charge higher real interest rates to protect themselves from the increased default risk.
The budget for the City of Goodville for the year ending December 31 was adopted and recorded on January 2 of the same year. After recording the budget, the accounting records showed a debit balance of $50,000 in the Budgetary Fund Balance account. What does this indicate?
Answer:
See below
Explanation:
A budgetary fund is an income account and thus a debit balance suggests a deficit on the fund account. This means that governing bodies of City of Goodville have spent more money in their expenditures than they have brought in as income from the fund. This will be recorded as a liability in the balance sheet. Where as a credit balance would be a surplus and recorded as an asset.
In the context of the customer-focused dimension of a global matrix, the _____ structure supplies customers in a coordinated and consistent way across various countries.
Answer:
The correct answer is (C)
Explanation:
A global account helps to save and spend money in foreign currency. In a global matrix, the global account structure helps to coordinate in a consistent way across various countries. It is a foreign account which is accessible to the customer globally. It helps t make and receive international payments. Many banks offer this service to their customers.
Solutions to the moral hazard problem include:
a. monitoring and enforcement of restrictive covenants
b. greater reliance on debt contracts than financial intermediatries
c. greater reliance on.
d. equity contracts and less on debt cotracts
e. low net worth
Answer: Option a
Explanation: In economics, when someone raises their risk exposure when covered, moral hazard happens, particularly when an individual takes unnecessary risks because someone else bears the burden of all those losses.
Thus, the insuring party should enforce and monitors some restrictive covenants. Restrictive covenants refers to the agreement specifying some acts that the insured party must not do or else the potential benefits he or she is willing to get will be revoked.
Hence from the above we can conclude that the correct option is A.
A limit on the amount of a good that can be brought in from another country for sale
Answer:
Quota
Explanation:
A quota is a trade limitation imposed by the state that reduces the number or monetary price of goods which a country may import or export over a given time period.
Countries use international trade quotas to help control trading volumes between them and the other countries.
Countries often place specific products on them in order to decrease imports and increase domestic manufacturing. In principle, by limiting foreign competition, quotas raise domestic production.
The benefits of expanding into international markets include each of the following opportunities EXCEPT:______ a. increasing the size of the firm's potential markets. b. favorable tax concessions and economic incentives by home-country governments. c. economies of scale and learning. d. location advantages.
Answer:
b. favorable tax concessions and economic incentives by home-country governments.
Explanation:
Venturing in international trade offers a business the opportunity to expand its market. The company will be able to distribute and sell its products to new regions and territories. A company will be able to grow its output, which results in economies of scale.
Growth in output requires the company to do large scale production. Production cost unit per unit decreases as a business output increases. After breakeven, every other unit produced contributes to an organization's profitability. International markets create chances of getting better locations for setting up new branches or finding cheap materials.
A Tax incentive is not a reason for engaging in foreign markets. Even if incentives are there, they last for a few years. Home countries will hardly give concessions to businesses engaging in international trade.
Which bond portfolio where all investment is made up front would be LEAST negatively affected by a sharp rise in interest rates?A. LadderB. BulletC. BarbellD. Balloon
Answer:
C. Barbell
Explanation:
The barbell portfolio has only 2 maturities
One is a very short term and a very long termThe bonds with longer term give a higher yield but they have a higher interest rate risk.
But in the very short term bond since the maturity time is less thus the bonds will mature sooner and the proceeds can be reinvested at higher rates.
Fredrick purchased a property worth $150,000 on mortgage. He had paid $30,000 as a down payment on this property. However, because of a recent slump in the real estate prices, the property is worth only $110,000, forcing Fredrick to sell the property. Assuming that no mortgage payments have been made by Fredrick, this sale is termed a(an) _____.A. fixed mortgage saleB. real estate short saleC. real estate declining equityD. shrinking principal saleE. indexed equity
Answer:
B. real estate short sale
Explanation:
Based on the information provided within the question it can be said that this sale is termed a real estate short sale. In the context of real estate, this term refers to when an house prices fall and an individual can no longer cover the mortgage of the house with what the buyer is paying. Which is exactly what happened to Fredrick in this situation.
Corporations can be separated into two types. A __________ held corporation does not offer its stock for public sale and usually has few stockholders. A __________ held corporation offers its stock for public sale and can have thousands of stockholders.
Answer:
A privately held corporation does not offer its stock for public sale and usually has few stockholders. A publicly held corporation offers its stock for public sale and can have thousands of stockholders.
Explanation:
Privately held corporations are owned by a few investors. Such a firm has limited ownership and can only sell its shares to private investors and not the public.
Publicly held corporations, can sell shares or stock to the public and can list on the stock exchange. In such a corporation, ownership is not limited to only private investors.
What taxes apply to the benefits under an individual Disability Income Policy on which the insured has paid the premiums?
Answer:
The correct answer is (A)
Explanation:
Taxes are used to increase government revenue, and to improve government budget. No tax is applied to the benefits under an individual disability income policy. There are various reasons why no tax is applied, but the major reason is that premiums are not deductible. Overall, governments usually don't apply taxes on individual disability income and generally give subsidies.
In an advertisement, FreshAir, Inc. stated that its air freshener lasted for 3 hours while the competitor's Smell Sweet lasted for only 36 minutes. In fact, Smell Sweet freshens the air for more than 2 hours. FreshAir has not violated the Lanham Act because the First Amendment's guarantee of freedom of speech applies.
A) True
B) False
Answer:
B) False
Explanation:
The Lanham Act of 1946 protects the owner of a trademark against any use that may result in consumer confusion and also regulates unfair competition, especially false advertisement.
In its ad, FreshAir is making false claims about Smell Sweet's air freshener. Therefore, Smell Sweet can sue FreshAir for defamation and false advertising.
Final answer:
FreshAir, Inc.'s misleading claim about its competitor's product's effectiveness can be considered a violation of the Lanham Act, as false advertising is not protected under the First Amendment's guarantee of freedom of speech.
Explanation:
The statement made by FreshAir, Inc. about its competitor's product, Smell Sweet, is false and misleading, which can be grounds for a violation of the Lanham Act. The Lanham Act prohibits false advertising that misrepresents the nature, characteristics, qualities, or geographic origin of goods, services, or commercial activities.
Commercial speech, such as advertising, is protected by the First Amendment, but this protection does not extend to false or misleading statements. The Lanham Act is designed to ensure that consumers are not deceived, which is critical for making informed purchasing decisions.
In the landmark case New York Times Co. v. Sullivan, the Supreme Court provided protection for free speech, especially around political discourse, but reaffirmed that false statements of fact are not entitled to the same level of protection, particularly in commercial advertising where there could be a tangible harm to competitors.
In this scenario, where FreshAir states a competitor's product lasts significantly less than it does, FreshAir can be sued for false advertising under the Lanham Act.
Thus, the claim that FreshAir, Inc. has not violated the Lanham Act because the First Amendment's guarantee of freedom of speech applies is false. The Lanham Act specifically targets and prohibits the kind of false advertising alleged against FreshAir, Inc.
During industrialization, smaller businesses struggled to compete with large corporations because small businesses
a. had to pay a larger tax to the government.
b. could not implement the cost-cutting measures used by large corporations.
c. could not compete with the superior quality of goods made by large companies.
d. had difficulty hiring people to work for them.
Answer: Option B
Explanation: In simple words, cost cutting refers to the process in which an organisation modifies or re- implement its production and distribution process with the sole object of reducing the cost of production.
By reducing the cost of production an organisation can charge low prices for the product in the market and attract more customers. Although this process sounds straight but it is not easy for the firms orating at small level.
Large firms can easily cut their cost without affecting quality as they have huge scale of operations and they purchase inputs at a high volume which makes them applicable for particular discounts.
Thus, from the above we can conclude that the correct option is B.
Bill would like to follow recommendations that would reduce his risk of cardiovascular disease (CVD). Based on this information, Bill should
A. become more physically active.
B. gain some body weight.
C. consume more saturated fat.
D. smoke no more than a pack of cigarettes daily
Answer:
Letter A is correct. Become more physically active.
Explanation:
Physical activity benefits human health in many ways: it helps improve fitness, promotes physical and mental well-being, regulates blood pressure, helps control weight and prevents the risk of chronic and cardiovascular disease. .
For people who want to avoid the risk of cardiovascular disease, physical activity is an easy and ideal option as it helps strengthen the heart muscle, lowers bad cholesterol levels, raises good cholesterol levels, and lowers blood pressure. .
Research has shown that physical activity prevents the risk of CVD and improves fitness, endurance and increased cardiorespiratory capacity.
With the lower interest rates in this example, Businesses invested an additional $________ billion in new productive projects such as nano-engineering and advanced internet equipment and training.
Answer: I found the example chart and the correct answer is " $ 100".
Explanation: With the lower interest rates in this example, Businesses invested an additional $100 billion in new productive projects such as nano-engineering and advanced internet equipment and training.
The reasoning behind increasing tax revenues from __________ tax rates is that people work harder and more effectively when they can keep more of their income.
Answer:
The reasoning behind increasing tax revenues from decreasing tax rates is that people work harder and more effectively when they can keep more of their income.
Explanation:
A corporate tax cut gives businesses more money to hire workers, invest in capital equipment, and produce more goods and services.
An income tax cut increases the dollars per hour worked. It boosts workers' incentive to remain employed and creates more labor. That is one of the four factors of production that drive supply. Adding to supply will allow the economy to grow. The growth in economy results in more taxes to government in total.
An example of an ineffective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $5.00 per bushel.A) $2.25B) $3.00C) $4.75D) $6.00
Answer:
D) $6.00
Explanation:
Price ceiling is a check on the price of a good or service imposed by the government to protect consumers by making sure that prices do not become excessively high. For the measure to be effective, the price set by the price ceiling must be below the natural equilibrium price.
If the the government setting the price of wheat at $6.00 per bushel which is above the market price of $5.00 per bushel that is an ineffective price ceiling.
An ineffective price ceiling for wheat would occur at $2.25 per bushel when the market price is $5.00, creating a shortage as producers won't supply enough at that low price.
Explanation:An example of an ineffective price ceiling would be the government setting the price of wheat at $2.25 per bushel when the market price is at $5.00 per bushel. An ineffective price ceiling is set below the equilibrium market price, leading to excess demand or shortages as the quantity demanded exceeds the quantity supplied. This scenario would occur at option A) $2.25.
A perfectly competitive firm will not sell below the equilibrium price of $5.00 as they can sell all they want at that higher price. When a price ceiling like $2.25 per bushel is set, it creates a shortage because producers are not willing to sell enough wheat at that low price. This condition leads to inefficient market outcomes where not all consumers can obtain wheat at the ceiling price.
A sales associate, while working for the broker, acquired a listing for $350,000 at a 6% commission rate. A second sales associate, who works for another brokerage office, found the buyer for the property. The listing and selling brokers agree to a 50-50 split between the two offices. The property sold for the listed price. The selling broker kept 55% of the commission received by the selling office. How much did the selling office sales associate receive?
Answer:
$ 4, 725
Explanation:
Each broker get 50% of (6/100 x$350,000)
i.e. =50% (0.06 x $350,000)
= $ 21,000/2
=$10,500
Broker kept 55% meaning the office got 45 %
= 45/100 x $ 10,500
= $ 4, 725
The selling office sales associate received $2,887.50 from the commission.
Explanation:The selling office sales associate received $3,675. Here's how the calculation is done:
The total commission is calculated as 6% of the listing price: $350,000 x 6% = $21,000.
The commission is split equally between the two brokerage offices, so each office receives $21,000 / 2 = $10,500.
From the selling office's commission ($10,500), the selling broker keeps 55%, which is $10,500 x 55% = $5,775.
The remaining amount is split between the sales associates in the selling office. In this case, it's a 50-50 split, so each sales associate receives $5,775 / 2 = $2,887.50.
Therefore, the selling office sales associate received $2,887.50.
Neal joins Filestene Inc. as an executive designer. The HR manager informs him that he will have to join the labor union within a period of 30 days from his start date. In the context of the security provisions related to union membership, Neal's HR manager is referring to a(n) _____ arrangement.A. closed shopB. maintenance of membership provisionC. agency shopD. checkoff provisionE.union shop
Answer: (E) Union shop
Explanation:
The union shop arrangement is refers to the process in which we require the number of workers for join and also participate in the specific union and it is also called as the post entry or the closed shop.
The workers or the union representatives also providing the various types of benefits in the specific time period. Depending on the different protection level the trade unions are varying nation to nations.
According to the given question, the Neal's human resource manager is basically referring to the union ship that is related to the union membership.
Therefore, Option (E) is correct answer.
Lukas believed that his company’s merit pay system would reward him fairly with a higher salary if he worked harder than other employees. His desire to work hard could be explained by the goal-setting theory of motivation.
Answer:
Equity theory
Explanation:
Equity theory as proposed by John Stacey Adam argues that employees becomes dissatisfied, disgruntled and discouraged when they feel their input into a company does not commensurate with their output in form of salaries, benefit, job security, reputation, recognition, and others. The theory argues that the employees will tend to reduce their inputs and may even become disruptive in their input activities. To circumvent this, the theory argues that employers of labour must find equitable balance between the employees input and their output. This, he belief, when perceived by the employees brings contentment to the employees.
The biggest and most important differences among the competitive strategies of different companies boil down to:_______A. How they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoiderB. The different ways that companies try to cope with the five competitive forcesC. Whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation
Answer:
C) Whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
Explanation:
A company's competitive strategy is how they plan to gain competitive advantage. In order to elaborate and carry on a competitive strategy the company must decide whether it will:
target a broad or narrow market (e.g. mass markets or niche markets)offer low cost products or differentiated products (e.g. branded or generic medicines)The biggest differences in competitive strategies among companies are their approaches to the five competitive forces, their market target (broad or narrow), and whether they focus on cost leadership or differentiation. Also, their risk-taking tendencies play a role in shaping their strategies.
Explanation:The largest and most significant distinctions among the competitive strategies of various firms can be boiled down to their techniques for dealing with the five competitive forces, the kind of market target they have (broad or narrow), and whether their strategy focuses on cost leadership or differentiation.
A company can be a cost leader by offering products or services at a lower cost than competitors, or by differentiating itself by offering unique and superior value. Also, whether a firm is a risk-taker also plays a significant role. Risk-seekers often take bold steps to gain a competitive edge over their rivals, while risk-avoiders prefer less risky strategies.
Learn more about Competitive Strategies here:https://brainly.com/question/33037544
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A company has outstanding accounts payable of $30,000 and a short-term construction loan in the amount of $100,000 at year end. The loan was refinanced through issuance of long-term bonds after year end but before issuance of financial statements. How should these liabilities be recorded in the balance sheet?
Answer:
Explanation:
Accounts payable is included in the current liability according to international financial reporting standards (IFRS). Although the construction loan was actually payable at year-end, if the company has both the willingness and ability to refinance with long-term debt, the $100,000 construction loan may be included at year-end in long-term liabilities. Therefore, current liabilities of $30,000 and long-term liabilities of $100,000 should be reported on the balance sheet.
The extracts of the statement of financial positions are given below:
Non-current liabilities:
Refinanced loan $100,000
Current liabilities:
Accounts payable $ 30,000
Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
Answer: Brokers and agents
Explanation:
Unlike wholesalers, brokers and agents do not take possession of the products they sell.
The function of brokers and agents in sales, is to promote a particular product they want to sell to a consumer, after which if the consumer agrees to buy it, they introduce the consumer to the seller of the product.
Wiggins Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock outstanding, and its total stockholders' equity equals $500,000. The book value per common share is:
Answer:
Book value par common share will be $19.6
Explanation:
We have given number of preferred stock = 1000
Value of preferred stock = $10 par preferred stock
So preferred Stock = 1000 x $10 = $10000
Total Stockholder's equity = $500000
Thus Common stock value = $500000 - $10000 = $490000
Total number of common stock = 25000 shares
So the book value per common share is = [tex]\frac{490000}{25000}=19.6[/tex]
Assume that the market for base-balls is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if base-balls are a(n) ________ good, then the demand curve will shift to the ________, causing the equilibrium price and quantity to ________.a) normal; left; rise b) normal; right; rise c) inferior; right; fall d) normal; left; fall e) inferior: left; fall
Answer:
d) normal; left; fall
Explanation:
A normal good is a good whose demand increases when income increases and whose demand falls when income falls.
An inferior good is a good whose demand increases when income falls.
If baseball is a normal good and income falls, quantity demanded falls. The demand curve would shift to the left. This leads to a fall in price.
If baseball were an inferior good, if income falls, quantity demanded rises and the demand curve shifts to the right and the equilibrium price and quantity rises.
I hope my answer helps you
Olivia found herself in over $10,000 worth of credit card debt after she graduated from college. Most of her purchases on her credit cards came from purchases at the mall which included clothing, shoes, and purses. She also used her credit cards to finance her vacation to Mexico during spring break. Overwhelmed by her high credit card balances, Olivia has decided she wants to start digging herself out of credit card debt. What is the first step she should take?
Answer:
stop using her credit card
Explanation:
Based on the information provided within the question it can be said that the first step that Olivia should take is to stop using her credit card. People have adopted a consumer culture, and that has skyrocketed since the invention of the credit card, as it makes it easy for individuals to impulse buy something even if they do not have the money for it. By switching from credit card to cash only it will allow you to not overspend and make hasty impulse buys, thus allowing you to save money and hopefully get out of credit card debt.