Answer:
Increase by $500 m
Increase by $250 m instead of $500 m
Explanation:
Since all the deposits over and above the reserve requirements are loaned out by the banks,
We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.
Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times
So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.
For a 20% reserve ratio, Credit multiplier changes a,
Credit Multiplier = 1 / 0.2 = 5 times
This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.
Hope that helps.
Suppose in a six-team league, the winning percentages were as follows at the end of the season. Team A: .750, Team B: 0.600, Team C: 0.500, Team D: 0.500, Team E: 0.400, Team F: 0.250.
(a)Compute the standard deviation of winning percentages within season (4 points). (Round to the third decimal.)
(b) Why do we use team-specific variation across seasons to measure competitive balance to complement the within season variation? (1 point)
Using the above, suppose each team plays a 50-game schedule. (Compute the "ideal" benchmark standard deviation based on equal playing strength, and the ratio of the actual to the ideal. (2 points)
Compute the same measures if they were to play a 90-game schedule (Round to the third decimal.) (2 points)
Which one has a higher "ideal" benchmark standard deviation and why? (1 point)
Answer:
Please see attachment
Explanation:
Please see attachment
Wald Corporation's adjusted trial balance shows the following temporary accounts: service revenue: $20,000; salaries expense $8,000; insurance expense: $2,000; utilities expense: $3,000; interest expense $200; and depreciation expense: $1,400. As part of the the closing process, Wald should credit retained earnings for:
a. $5,400
b. $20,000
c. $14,600
During the process of closing accounts in accounting, Wald Corporation should credit its Retained Earnings account for $5,400. This is calculated by subtracting the total expenses from the service revenue. This credited amount represents the company's earnings after accounting for all expenses.
Explanation:In accounting, during the closing process, we aim to clear out the balances of the temporary accounts and transfer their net effect to the permanent accounts, like Retained Earnings. Wald Corporation's adjusted trial balance shows the following temporary accounts which include both revenues and expenses: service revenue, salaries expense, insurance expense, utilities expense, interest expense, and depreciation expense.
The revenue is the income earned by the corporation which is $20,000 in this case, and expenses are the cost incurred to earn this revenue, and here we sum up all the expenses which include salaries expense, insurance expense, utilities expense, interest expense and depreciation expense, we get a total expense of $14,600 ($8,000+$2,000+$3,000+$200+$1,400). Now, the net effect or the result from operations is found by subtracting total expenses from the service revenue which will be credited to the Retained Earnings account. Therefore, Wald Corporation should credit Retained Earnings for $5,400 ($20,000-$14,600).
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During periods of recession a(n) ___________ money policy is appropriate to encourage business expansion with low interest rate..
Answer:
the correct answer is easy
Explanation:
During periods of recession a(n)easy money policy is appropriate to encourage business expansion with low interest rate..
Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the next five years and have a residual value of $50,000. The equipment was sold for $210,000 part way through 2021. Actual production in each year was: 2019 = 100,000 units; 2020 = 160,000 units; 2021 = 80,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Prepare the journal entry to record the sale.
Answer:
See explanation section
Explanation:
We know,
Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production
Given,
Purchase value = $400,000
Residual value = $50,000
Expected production = 700,000 units
Depreciable Amount = $(400,000 - 50,000) = $350,000
Annual depreciation rate = $350,000/700,000
Depreciation rate = $0.50
Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50
= $170,000
We know, Book value of asset = Cost price - Accumulated depreciation
Book value = $400,000 - $170,000 = $230,000
Again, Loss on sale of equipment = Book value - Sales price
Loss on sale of equipment = $230,000 - $210,000
Loss on sale of equipment = $20,000
The journal entry to record the sale =
Debit Cash $210,000
Debit Accumulated Depreciation $170,000
Debit Loss on sale $20,000
Credit Equipment $400,000
Answer:
YY 2021, disposal of equipment:
Dr Cash 210,000
Dr Accumulated depreciation 170,000
Dr Loss on disposal 20,000
Cr Equipment 400,000
Explanation:
depreciation per unit produced = (cost - resale value) / estimated production = ($400,000 - $50,000) / 700,000 units = $350,000 / 700,000 units = $0.50 per unit
the journal entries should be:
XX 2019, purchase of equipment:
Dr Equipment 400,000
Cr Cash 400,000
December 31, 2019, equipment depreciation:
Dr Depreciation expense 50,000 (= 100,000 units x $0.50)
Cr Accumulated depreciation - equipment 50,000
December 31, 2020, equipment depreciation:
Dr Depreciation expense 80,000 (= 160,000 units x $0.50)
Cr Accumulated depreciation - equipment 80,000
YY, 2019, equipment depreciation:
Dr Depreciation expense 40,000 (= 80,000 units x $0.50)
Cr Accumulated depreciation - equipment 40,000
YY 2021, disposal of equipment:
Dr Cash 210,000
Dr Accumulated depreciation - equipment 170,000
Dr Loss on disposal 20,000
Cr Equipment 400,000
On March 31, 2019, the Federal Unemployment Tax Payable account in the general ledger of The Argosy Company showed a balance of $1,507. This represents the FUTA tax owed for the first quarter of the year. On April 30, 2019, the firm issued a check to deposit the amount owed in the First Security National Bank. Record this transaction in general journal form.
Answer:Argosy Journal $
Date
March 31,2019
FUTA tax expenses Dr 1507
FUTA tax payable Cr 1507
Narration. Records of amount of futa tax payable.
April 30,2019
Investment- First security national bank Dr 1507
Bank account Cr 1507
Narration. Investment deposit to first security national bank
Explanation:
The liability to pay the Futa tax is represented in the Argosy account as an expenses to the income statement and a liability awaiting payment by Argosy.
The deposit of the amount of the tax to security bank account does not represents a payment of the liability but a transaction between the Argosy and the bank.
The value of money has a ___________ relationship to the price level ( 1 / price level).
a. denominator
b. numerator
c. reciprocal
d. multiplier
Answer:
c. reciprocal
Explanation:
The value for the money is the amount of goods or service that can be bought or worth in exchange of 1 unit of money or you can say it how much goods or service need to be given up to get 1 unit of money. Therefore, value of money is the inverse or reciprocal for the price level. The value for money determine the purchasing power of the economy, The higher the price level, lower the Purchasing power of money.
The people assigned to your project have high billable rates, and the project budget doesn't provide much of a buffer over your estimated total project cost. Fortunately, the project finish date has some wiggle room. Which measure of progress is most important to track in this situation?
Explanation:
What are all the possible things which we can do in remaining duration are given below. We need not worry about actual duration or start date. We need to consider the remaining date and give out the best possible.
Call for a meeting and do the following:
Step 1: To identify the pending tasks and the person who is responsible
Step 2: Discuss the reason for delay
Step 3: Explain the current scenario
Step 4: Give tight deadlines and motivate the team to keep up the dates
Step 5: Re-insist on the quality factor
Step 6: Place the responsibility on the team shoulder
Step 7: Ask the team to restart with positive thoughts
Steps to be followed after meeting:
Follow up about the datesFollow up on qualityIdentify the need for hand-holdingMotivate throughoutThe measure of progress that is most important to track the budget here is remaining duration.
What is a remaining duration?In a project management, it means the period of expected or required time that is required to complete a particular activity.
When we employ the remaining duration, we need not worry about actual duration or start date, all that is consider is the remaining date to give out the best possible.
Therefore, the Option B is correct.
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During the current year, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $13,000 in gross income from an outside consulting service she operates. Deductible expenses paid in connection with the consulting service amount to $3,000. Eleanor also incurs a recognized long-term capital gain of $1,000 from the sale of a stock investment. She must pay a self-employment tax on:
Answer:
$10,000
Explanation:
Eleanor's self-employment tax will require an understanding of a few points.
1. Eleanor earns $120,000 as wages working for an accounting firm therefore, this wages do not qualify for self-employment tax
2. Eleanor earns $13,000 as gross income for her own consulting service and this is self-employment income. However, $3,000 qualify as deductible expenses from the gross income. Taxable self-employment income= $13,000-$3,000= $10,000
3. Long term capital gain tax incurred = $1,000. Ordinarily the capital gain tax should increase the tax. However, its inclusion will be based on the federal government's table for calculating payment of long-term capital gain tax for 2019 based on income for the year.
Looking at the table, income from $0 Up to $39,375 will attract 0% payment of long-term capital gain tax. Since, the self-employment income of Eleanor is $10,000, no long-term capital gain tax will be incurred.
It means only the 13,000-3,000= $10,000 will be tax for self employment
Mary is in contract negotiations with a publishing house for her new novel. She has two options. She may be paid $100,000 up front, and receive royalties that are expected to total $26,000 at the end of each of the next five years. Alternatively, she can receive $200,000 up front and no royalties. Which of the following investment rules would indicate that she should take the former deal, given a discount rate of 8%?Rule I: The Net Present Value ruleRule II: The Payback Rule with a payback period of two yearsRule III: The internal rate of return (IRR) RuleA) Rule II and IIIB) Rule I and IIC) Rule III onlyD) Rule I only
Answer:
D) Rule I only
Explanation:
The net present value value can be calculated by subtracting the amount that would be gotten now from the present value of the amount that would be gotten for the next five years.
The NPV can be found using a financial calculator
Cash flow for year 0 = $-100,000
Cash flow each year for year 1 - 5 = $26,000
I = 8%
NPV = $3810.46
The present value of the investment is $203,810.46 which is greater than $200,000. Mary should pick the first option.
The NPV is appropriate because the present value of both options can be compared.
The IRR is the discount rate which equates the after tax cash flows from an investment to the amount invested. The IRR cannot be used because the second option doesn't have a stream of cash flows to which to calculate its IRR.
The payback period measures how long it takes for the amount invested to be recouped from cash flows. The payback period cannot be used because there are no cash flows for the second option.
I hope my answer helps you.
For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been found that a good description of the arrival pattern is provided by:a. a normal probability distribution.b. an exponential probability distribution.c. a uniform probability distribution.d. a Poisson probability distribution.
Answer:
D. A Poisson Probability Distribution
Explanation:
Poisson Probability Distribution
This is a probability distribution is used in probability theory and statistics to express the probability of a number of events that occur with a known rate or interval of distance, area, volume or time. Specifically, the Poisson probability distribution named after Simeon Denis Poisson, a French mathematician, is used to express probability where events occur one independent of the other.
Comparing this definition with the waiting line situations, one thing is common, arrivals occur independently of other arrivals and this distribution can be described using the Poisson Probability Distribution.
On October 1, 2021, Oberley Corporation loans one of its employees $27,000 and accepts a 12-month, 10% note receivable.Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.
Answer:
2021 $675
2022 $2,025
Explanation:
Assuming that the financial year of the Oberly Corporation is from January to December.
The amount of interest revenue that will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2021 will be as follows:
Interest Revenue=Principal amount*interest rate*3/12
Interest Revenue=27000*10%*3/12=$675
Since the Oberly Corporation has extended loan to its employee on October 1,2021, therefore only interest revenue of only 3 months will be recognised in the year ended December 31, 2021.
The amount of interest revenue that will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2022 will be as follows:
Interest Revenue=27000*10%*9/12=$2,025
;
Oberley Corporation will recognize $675 in interest revenue for the year 2021 and $2,025 for the year 2022 from the $27,000 loan to an employee at a 10% interest rate.
Explanation:To calculate the amount of interest revenue Oberley Corporation will recognize in 2021 and 2022 from the $27,000 loan to an employee at a 10% interest rate, we need to consider the fraction of the year the loan is outstanding in each year. Since the loan is issued on October 1, 2021, and is a 12-month note, the interest for 2021 will be for 3 months, and the interest for 2022 will be for the remaining 9 months.
The annual interest on the loan is calculated as follows:
Interest = Principal × Interest rate × Time
For 2021:
Interest = $27,000 × 10% × (3/12) = $675
For 2022:
Interest = $27,000 × 10% × (9/12) = $2,025
Therefore, Oberley Corporation will recognize $675 in interest revenue for 2021 and $2,025 in interest revenue for 2022.
Imagine you are a buyer in a double oral auction with a reservation value of $17 and there is a seller asking for $11
If you accept this offer, you will gain ................$ (Enter your answer as an integer)
If you are the only buyer, and you know that the lowest ask price is $3, should you accept this offer?
A. Yes, since you will gain $14.
B. No, as the only buyer you can extract a lower ask price.
C. Yes, accepting an offer from any other seller will reduce your surplus.
D. Both A and C are correct.
Answer:
Yes, since you will gain $14
Explanation:
1. We're going to get $6 in this case. Because our profit represents the difference in our readiness to pay and the cost charged by the seller.
2. As we are ready to sell the seller is now 3, from this contract we will receive $17-3= $14.
Every other vendor would lower our $14 surplus
The tender price refers to a purchaser's highest price for money. The demand price corresponds to a seller's cheapest price for a product.
This is known as the spread, but the smaller the spread, the larger the visibility of the defence.
The gain from accepting the offer is $6. However, knowing that there's a lower asking price available, it would be more beneficial for the buyer not to accept this offer and negotiate for a price closer to $3, thus increasing his gain.
Explanation:In a double oral auction, a buyer's gain is the difference between their reservation value (the highest price they're willing to pay for a good) and the seller's asking price. In this scenario, the buyer's reservation value is $17, and the seller's asking price is $11, so the buyer would gain $6 if they accept this offer.
However, as the question states, the lowest known asking price is $3. If you're the only buyer, thus having bargaining power, there's a potential to negotiate a lower price, even lower than $11. So, the answer is Option B: No, as the only buyer you can extract a lower ask price.
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Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 1,000 Advertising expense 500 Mortgage interest 3,500 Property taxes 900 Repairs & maintenance 650 Utilities 950 Depreciation 8,500 During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
Using the original facts, complete Natalie’s Form 1040, Schedule E, for this property. Also, partially complete Natalie’s 1040, Schedule A, to include her from AGI deductions related to the condo.
Answer and Explanation:
Natalie's Gross Income = $10,000
75 + 35 = 110 days
Expenses:
Insurance Expense (75/110) x 1000 682
Advertising Expense 500
Mortgage Interest (75/110) x 3500 2386
Property Taxes (75/110) x 900 614
Repairs and Maintenance (75/110) x 650 443
Utilities (75/110) x 950 648
Depreciation (75/110) x 8500 5795
Until the depreciation expenses the total expenses accumulate to 5273. If we deduct that with the gross income total we get 4727. We can only deduct 4727 from the total portion of 5795 depreciation expense.
Therefore, for AGI deductions we take total of (5273 + 4727) = $10,000
For Natalie's personal deduction of AGI
Mortgage interest (35/110) x 3500 1114
Property taxes (35/110) x 900 286
Total personal deduction for AGI $1400
Natalie would calculate the rental portion of her expenses, and use those to compute her rental real estate loss as well as potential deductions on her Schedule A itemized deductions.
Explanation:Natalie would first calculate the rental portion of her expenses since the property is not used solely for rental. The Tax Court method divides the number of rental days by the total number of days the condo was used. In this case, it is 75 rental days divided by 110 total days or 0.6818 as the apportionment ratio.
Next, each expense is multiplied by this ratio:
For the personal portion of the mortgage interest and property taxes, Natalie would be able to include these in her Schedule A itemized deductions. Therefore, she could potentially deduct the remaining $1,114 (Mortgage Interest) and $287 (Property Taxes) on Schedule A.
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On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2017, the band performs 45 concerts. Compute the year 2017 depreciation using the straight-line method.
Answer:
Annual depreciation= $15,950
Explanation:
Giving the following information:
On January 2, 2017, the Matthews Band acquires sound equipment for concert performances for $65,800.
The band estimates it will use this equipment for four years. It estimates that after four years it can sell the equipment for $2,000.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (65,800 - 2,000)/4= $15,950
A researcher is studying the effectiveness of two different resident adolescent drug treatment programs. Program A is used at Summerhill adolescent facility. Program B is used at Winterdale adolescent facility. Because random assignment to treatments is not possible in this situation, what can the researcher do to minimize possible effects of sample bias?
Answer and explanation:
In order to avoid sample bias, it is important to make a classification of the teenagers being studied by categorizing them according to race, family composition, and drugs used, for instance. This will allow the researcher to compare similar samples of the two different facilities instead of picking some randomly without taking into consideration factors like the mentioned above.
To minimize possible sample bias when random assignment is not feasible, the researcher can employ strategies like matched sampling, controlling for confounding variables, propensity score matching, and conducting sensitivity analysis.
To minimize possible effects of sample bias when random assignment to treatments is not feasible, the researcher can employ various strategies:
1. Matched sampling: The researcher can carefully match participants in Program A with similar participants in Program B based on relevant characteristics such as age, gender, severity of drug addiction, socioeconomic status, and prior treatment history.
2. Control for confounding variables: The researcher can statistically control for known confounding variables that may influence the outcome by including them as covariates in the analysis.
3. Propensity score matching: The researcher can calculate propensity scores for each participant, representing the likelihood of being assigned to Program A or Program B based on observed characteristics, and then match participants with similar propensity scores.
4. Sensitivity analysis: The researcher can conduct sensitivity analyses to assess the robustness of the findings to potential biases.
By employing these strategies, the researcher can enhance the comparability of the treatment groups and minimize the influence of sample bias on the study results, thereby increasing the validity of the findings.
If the MPC is 0.9 and a component of AD, such as Government, is increased by $2, then the maximum amount of change in income and output for the nation would be ___________1. $20 2. $25 3. $50 4. $100
Answer:
1. $20
Explanation:
MPC = 0.9
g = $2
change in y = 1/(1 - MPC)*g
= 1/(1 - 0.9)*2
= $20
Therefore, The maximum amount of change in income and output for the nation would be $20.
A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 25%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment?
A) $837,500
B) $303,750
C) $125,000
D) $337,500
Answer:
The correct answer is D.
Explanation:
Giving the following information:
New injection molding equipment for a cost of $500,000.
Increase in sales of 25%.
The manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton.
First, we need to calculate the new sales level:
New sales (units)= 75t* 1.25= 93.75 tons
Increase in sales (dollars)= (93.75 - 75)*18,000= $337,500
Final answer:
The increase in revenue from the new equipment for the clothespin manufacturer is projected to be $337,500 next year. This figure is calculated by determining the additional revenue generated from the 25% increase in production, which amounts to an additional 18.75 tons of product sold at the existing price of $18,000 per ton.
Explanation:
The student is asking how the purchase of new injection molding equipment, which allows for a 25% increase in production capacity, will affect the revenue of a small manufacturer that makes clothespins. With the current production at 75 tons per year, sold at $18,000 per ton, we can calculate the increase in revenue from the anticipated sales boost.
Calculate the current annual revenue: 75 tons x $18,000 per ton = $1,350,000.
Determine the additional tons produced due to the 25% increase: 75 tons x 25% = 18.75 tons.
Calculate the additional revenue from the sale of the extra tons: 18.75 tons x $18,000 per ton = $337,500.
Thus, the increase in revenue next year from the new equipment is $337,500, which corresponds to option D.
You earn $93,000 per year at your job. The index value for the medical care component of the CPI is currently 440 but is expected to increase next year to 481. How much money will you need to earn next year to be able to purchase the same amount of medical care? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
Answer:
$101,665.91
Explanation:
Data provided in the question:
Current earnings = $93,000
Current CPI = 440
Expected future CPI = 481
Now,
The money needed to earn next year to be able to purchase the same amount of medical care will be
= Current earnings × [ Expected future CPI ÷ Current CPI ]
= $93,000 × [ 481 ÷ 440 ]
= $101,665.91
Universal Containers requires that the organization-wide default for opportunities be set to public read/write. However, sales users are complaining that opportunity reports return too many results, making it difficult to find their team’s opportunities in the report results.
A. Update the sharing rules to limit user access to certain opportunities
B. Move the opportunity reports into each user’s personal report folder
C. Move the opportunity reports into a folder with restricted access
D. Use the show filter to filter report results and reduce records returned
Answer: The correct answer is "D. Use the show filter to filter report results and reduce records returned".
Explanation: If sales users are complaining that opportunity reports return too many results, making it difficult to find their team’s opportunities in the report results it would be convenient use the show filter to filter report results and reduce records returned.
Donna’s philosophy as she coordinates her firm’s marketing efforts is to keep in mind the company’s overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with the communications but also including the other marketing mix elements. Based on this information, Donna is most likely a proponent of___________.a. Integrated Marketing Communicationsb. Intended Marketing Commitmentsc. Media Reachd. Media Response
Answer:
Explanation:
Integrated Marketing Communications or IMC is an approaching in marketing that seeks to ensure a unified experience for a firm's customers, marketing efforts and even mangement across various channels of communication. IMC tries to ensure that a links are maintained among all forms of messages and communications between the firm and its consumers.
IMC not only ensure the integration of promotional or marketing tools to ensure harmony, it also ensures that marketing activities are constantly in line with the firm's strategies and objectives.
IMC seeks to integrate all levels of communcation including vertical, horizonal, external and internal levels of communication to strengthen its communcation lines and marketing activities.
Donna's approach constantly marries her firm's marketing activities with the company's strategies and goals through an integrated communication system that is constantly and consistently active for instructions as well as feedbacks. The approach believes that an organisation's objectives are better and easily achieved when all communication tools and channels work in harmony to create one voice.
Donna's approach in keeping the company's overarching strategy in mind and ensuring consistent messaging across all marketing activities aligns with the principles of Integrated Marketing Communications (IMC).
Explanation:Based on the information provided, Donna is most likely a proponent of Integrated Marketing Communications (IMC).
This strategic approach aims to deliver consistent and coordinated messages across varying promotional methods - advertising, public relations, direct marketing etc., guided by the company's overarching business strategy.
A key goal of IMC is that all aspects of marketing communication, including advertising, sales promotion, public relations, and direct marketing, work together as a unified force, rather than allowing each to work in isolation, which increases their overall effectiveness.
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Samantha, who is single and has MAGI of $36,000, recently was employed by an accounting firm. During the year, she spends $1,650 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,275 for tuition and $900 for books (which are not a requirement for enrollment in the course).
Assuming no reimbursement, how much can Samantha deduct for the:
a. CPA exam review course? $X
b. Law school expenses? $X
Answer:
a) $0
b) $4,000
Explanation:
a)
No deduction will be allowed to samantha for the amount spent on CPA exam review course.
So, Samantha can deduct $0.
b)
Under section 222 of IRS Code, maximum amount of deduction allowed to tax payer (whose adjusted gross income is less than $65,000) on account of tuition fees and other education expenses is $4,000.
So, Samantha can deduct $4,000.
Hope this helps!
Final answer:
Samantha may not be able to deduct expenses for her CPA exam review course unless such employee expense deductions are allowed, which are currently suspended by the Tax Cuts and Jobs Act. Her law school expenses also are not deductible as they are for education that qualifies her for a new profession. She may, however, be eligible for education credits like the Lifetime Learning Credit.
Explanation:
Samantha, who has a MAGI of $36,000 and is pursuing further education and professional development, can expect different tax treatments for her CPA exam review course and her law school expenses. The deductibility of these expenses depends on current tax laws and eligibility for education-related tax benefits.
For the CPA exam review course, if it maintains or improves skills required in her current job, she may be able to deduct it as an unreimbursed employee expense if such deductions still exist. However, if these deductions have been eliminated or suspended in the current tax law (e.g., by the Tax Cuts and Jobs Act which suspended these deductions for tax years 2018-2025), then she would not be able to claim a deduction.
Regarding law school expenses, she cannot deduct the tuition and related expenses as they are for education that qualifies her for a new profession, which is not deductible. Nonetheless, Samantha could potentially be eligible for education credits if she falls within the income threshold, such as the Lifetime Learning Credit, which may provide a credit of up to $2,000 for qualified education expenses.
The Federal Open Market Committee (FOMC) makes decisions regarding the___________.
A. discount rate
B. reserve requirements
C. margin requirements on stock purchases (primarily common stock)
D. buying and selling of securities (primarily Treasury bonds)
Answer:
The correct answer is letter "D": buying and selling of securities (primarily Treasury bonds).
Explanation:
The Federal Open Market Committee or FOMC is a department of the Federal Reserve Board in charge of establishing monetary policy. There are different meetings within a year they held to determine to continue with the current policy or to change it. A change in monetary policy represents the purchase or sale of government securities (treasury bonds) on the open market to stimuli the economy.
Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A)20,000; 22,000
B)5,000; 2,000
C)3,000; 5,000
D)5,000; 7,000
Answer:
D)5,000; 7,000
Explanation:
Public is holding 2000 econs and banks reserves are 300 econs. It is mentioned that reserve requirement is 10%.
So total bank deposits must be 3000. Money supply in the economy is (3000 + 2000 = 5000)
When the reserve ratio is 0.1, that means the money multiplier is 10.
If there is an additional inflow of currency because of printing 200 econs by central bank then because of multiplier effect it will be 2000 econs.
Money supply from earlier 5000 econs will become 7000 econs.
Option D is correct.
A bank has $200 million in demand deposits and $150 million in reserves. The reserve ratio is 20 percent. What is the maximum amount of loans the bank can make from its reserves?
Answer:
maximum amount of loan bank that make reserve is $110 million
Explanation:
given data
demand deposits = $200 million
reserve = $150 million
reserve ratio = 20%
to find out
maximum amount of loan bank can make reserve
solution
we get here excess reserve that is
excess reserve = deposits × reserve ratio ...............1
excess reserve = $200 million × 20%
excess reserves is $40 million
so maximum amount of loan bank that make reserve is = $150 million - $40 million
maximum amount of loan bank that make reserve is $110 million
The maximum amount of loans the bank can make from its reserves is $110 million. This is calculated as the difference between the total reserves and the required reserves (based on the reserve ratio).
Explanation:The maximum amount of loans a bank can make is calculated as the difference between its total reserves and its required reserves. In this case, the bank has $150 million in total reserves. Because the reserve ratio is 20 percent, this means that the bank is required to have at least 20% x $200 million = $40 million as reserves. Therefore, the maximum amount of loans the bank can make from its reserves is $150 million - $40 million = $110 million.
To put it differently, if the bank’s total reserves are larger than the required reserves (based on the reserve ratio), the bank is able to make loans. This banking practice contributes to expand the money supply in the economy. However, it’s important to understand that if all depositors were to demand their money back at once, the bank would not have enough reserves on hand to satisfy this demand, which is known as a 'bank run' scenario.
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Marston Manufacturing Company is considering a project that requires an investment in new equipment of $4,200,000, with an additional $210,000 in shipping and installation costs. Marston estimates that its accounts receivable and inventories need to increase by $840,000 to support the new project, some of which is financed by a $336,000 increase in spontaneous liabilities (accounts payable and accruals).The total cost of Martson's new equipment is ___________.
Answer:
$4,410,000
Explanation:
The computation of the total cost of Martson's new equipment is shown below:
= Required investment in new equipment + additional shipping and installation costs
= $4,200,000 + $210,000
= $4,410,000
We simply added the required investment value in new equipment and additional shipping and installation cost so that the correct value can come.
All other information which is given is not relevant. Hence, ignored it
The total cost of Marston's new equipment is $4,074,000, taking into account the initial investment, shipping and installation costs, and reduction due to an increase in spontaneous liabilities.
The total cost of Marston's new equipment can be calculated by adding the initial investment in new equipment to the shipping and installation costs, less any increase in spontaneous liabilities that offset part of the investment. Initial equipment cost is $4,200,000 and the shipping and installation costs are $210,000. However, the increase in spontaneous liabilities, which can be subtracted from these costs, is $336,000. Therefore, the calculation would be:
$4,200,000 (equipment) + $210,000 (shipping/installation) - $336,000 (spontaneous liabilities) = $4,074,000.
This reflects the actual cash outflow that the company anticipates for the new equipment, not including any changes to accounts receivable or inventories.
Lori purchased educational savings bonds to help finance her son's education. She paid $4,000 for the bonds. The bonds matured at $6,000, and the son used $2,500 to pay his tuition for the first semester. The son quit school after one semester and Lori used the remaining money to buy her son a car. If Lori's AGI is $55,000, how much interest is included in her gross income?
Answer:
$1,167 nterest is included in her gross income.
Explanation:
Interest in this case = $6,000 - $4,000
= $2,000
Amount invested = 2,500/6000
= 41.67%
Interest excluded = 2,000*41.67%
= $833
interest included in Lori’s AGI = $2,000 – $833
= $1,167
Therefore, $1,167 nterest is included in her gross income.
Madrid Company has provided the following data (ignore income taxes):
2014 revenues were $77,500.
2014 net income was $33,900.
Dividends declared and paid during 2014 totaled $5,700.
Total assets at December 31, 2014 were $217,000.
Total stockholders' equity at December 31, 2014 was $123,000.
Retained earnings at December 31, 2014 were $83,000.
Which of the following is not correct?
A. 2014 expenses were $43,600.
B. Total liabilities at December 31, 2014 were $94,000.
C. Retained earnings increased $33,900 during 2014.
D. Common stock at December 31, 2014 was $40,000.
Answer:
C.Retained earnings increased $33,900 during 2014.
Explanation:
Total expenses during the year=Revenue- net income
=77,500-33,900
=$43,600
Therefore, option A. is correct
Total Liabilities=Total assets-total equity
=217,000-123,000
=$94,000
Therefore, option B. is correct
The formula for calculating Retained earnings is given as follows:
Retained earnings at year end=Opening retained earnings+net income-dividend paid.
83,000=opening retained earnings+33,900-5,700
opening retained earnings=83,000-33,900+5,700
=54,800
Change in retained earnings=closing retained earnings-opening retained earnings
Change in retained earnings=83,000-54,800=28,200
Therefore, Option C. is not correct
Common stock at December 31, 2014=total equity-total retained earnings
=123,000-83,000
=$40,000
Therefore, Option D. is correct
Based on the above discussion the answer is C.Retained earnings increased $33,900 during 2014.
The correct answer is option C. Retained earnings increased $33,900 during 2014.
Explanation:To determine which of the given options is not correct, we need to analyze each option individually.
A. 2014 expenses were $43,600:
This can be calculated by subtracting the net income of $33,900 from the revenues of $77,500: $77,500 - $33,900 = $43,600. Since this calculation matches the given expense amount, option A is correct.
B. Total liabilities at December 31, 2014 were $94,000:
To calculate total liabilities, we subtract stockholders' equity from total assets: $217,000 - $123,000 = $94,000. Since this calculation matches the given amount, option B is correct.
C. Retained earnings increased $33,900 during 2014:
We can determine the change in retained earnings by comparing the net income and dividends declared: $33,900 - $5,700 = $28,200. Since this calculation does not match the given change, option C is incorrect.
D. Common stock at December 31, 2014 was $40,000:
Common stock can be calculated by subtracting retained earnings from stockholders' equity: $123,000 - $83,000 = $40,000. Since this calculation matches the given amount, option D is correct.
Therefore, the correct answer is option C. Retained earnings increased $33,900 during 2014.
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Hadlee Corporation produces two products, P and Q. P sells for $9.50 per unit; Q sells for $5.50 per unit. Variable costs for P and Q are $5.00 and $3.00, respectively. There are 3,300 direct labor hours per month available for producing the two products. Product P requires 3.00 direct labor hours per unit, and product Q requires 5.00 direct labor hours per unit. The company can sell up to 900 units of each kind per month. What is the maximum monthly contribution margin that Hadlee can generate under the circumstances? (Round to nearest whole dollar.) A. $14,070 B. $300 C. $4,350 D. $4,050
Answer:
C. $4,350
Explanation:
We first calculate contribution per limiting factor to rate priority the products to be produced.
Contribution P = 9.50 - 5 = $4.50
Contribution Q = 5.50 - 3 = $2.50
Labor hours used,
P = 3
Q = 5
Contribution / labor hour
P = 4.50 / 3 = $1.5
Q = 2.50 / 5 = $0.5
We should prioritize production of P first and thus total units produced for P should be 900 using 900*3 = 2700 labor hours.
Q should be produced
Hours available for Q = 3300 - 2700 = 600 hours
Q production = 600/5 = 120 units.
Optimum Contribution =
900 units of P @ 4.50 contribution / unit = $4,050
120 units of Q @ 2.50 contribution / unit = $300
Total Contribution = 4,050 + 300 = $4,350
Hope that helps.
A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of Law, the School of Arts and Sciences, and so forth. The university is experiencing some financial problems, so the administration has decided to have each school of the university become a profit center. This scheme is somewhat parallel to the ______ organizational structure. a. matrix b. functional c. network d. strategic business unit multidivisional
Answer:
The correct answer is D
Explanation:
SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.
So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.
Fun! Inc. had total sales of $ 480,000 in 2014. The total cost of goods sold was $ 400,000 and the administrative and sales costs were $ 100,000. what is the net income of the company in 2014?
Answer:
-$20,000
Explanation:
In the income statement, total revenue and total expenditures are reported.
If the total income is more than the total expenditure, then the company would gain net income And if the total income is less than the total expenditure, then the company will have a net loss This net income or net loss would be expressed in the statement of retained earning
The computation of the net income is shown below:
= Total sales - total costs of goods sold - administrative and sales costs
= $480,000 - $400,000 - $100,000
= -$20,000