If an investor has a fixed investment horizon, what type of security can be used to minimize both the price risk and the reinvestment risk?

Answers

Answer 1

Answer:

A zero coupon treasury bond

Explanation:

A zero coupon treasury bond having a maturity period matching the investment horizon of an investor can minimize both price risk and reinvestment risk.  Reinvestment risk in case of a bond refers to reinvestment of the cash flows from the bond at a return close to current investment rate of return. As a zero coupon treasury bond do not pay any coupon payment, it won't carry any reinvestment risk.  

The bond holder in case of a zero coupon treasury bond, receives a guaranteed payment at maturity of the bond. This payment is equal to face value or par value of the bond. Price risk (increase or decrease in a bond value due to interest rates) matters if a bond is sold before maturity.. However, on selling a bond at its maturity, price risk won't matter as the payment will be equal to face or par value.


Related Questions

Selected transactions for Sheridan Company are presented below in journal form (without explanations).


Date Account Title Debit Credit

May 5 Accounts Receivable 4,400

Service Revenue 4,400


12 Cash 1,930

Accounts Receivable 1,930


15 Cash 2,190

Service Revenue 2,190


Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)


Cash

 5/55/125/15  5/55/125/15

 5/55/125/15  5/55/125/15


Accounts Receivable

5/55/125/15

Answers

5+55+125+15=555555555....

The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $44 a share, what is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity__________ %

Answers

Answer:

r = 0.106079 or 10.6079% rounded off to 10.61%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 is the dividend paid  recently

D0 * (1+g) is dividend expected for the next period /year

g is the growth rate

r is the required rate of return or cost of equity

To calculate the cost of equity (r), we will plug in the values for P0, D0 and g in the formula,

44 = 2.35 * (1+0.05)  /  (r - 0.05)

44 * (r - 0.05) =  2.4675

44r - 2.2 = 2.4675

44r = 2.4675 + 2.2

r = 4.6675 / 44

r = 0.106079 or 10.6079% rounded off to 10.61%

The company's cost of equity is 10.61%.

The formula that can be used to determine the cost of equity is:

r = [tex]\frac{D_{1} }{P}[/tex] - g

Where:

[tex]D_{1}[/tex] = dividend next year = $2.35 x (1.05) = $2.47g = growth rate P = value of the stock = $44

r = [tex]\frac{2.47}{44} + 0.05[/tex] = 10.61%

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You decide to invest $20,500 in Bank of America and $14,500 in Twitter. What is the portfolioâs beta? Bank of America beta: 1.27 Twitter beta: 1.96

Answers

Answer:

Portfolio Beta = 1.555857143 rounded off to 1.56

Explanation:

The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The formula to calculate the beta of a portfolio containing two stock is as follows,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B

Where,

w is the weight of each stock

As the investment in Stock of Bank of America is 20500 and the investment in stock of Twitter is 14500, the total investment in the portfolio will be,

Total investment = 20500 + 14500  =  35000

Portfolio Beta = 20500 / 35000 * 1.27  +  14500 / 35000 * 1.96

Portfolio Beta = 1.555857143 rounded off to 1.56

A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $700,000. Net assets without donor restrictions are $400,000. Net assets with donor restrictions are $300,000. Of the restricted net assets, $160,000 is to be held and used to buy equipment, $40,000 is to be used for salaries, and the remaining $100,000 must be held permanently. The permanently held amount must be invested with 70 percent of any subsequent income used to cover advertising for fundraising purposes. The rest of the income is unrestricted.
During the current year, this health care entity has the following transactions:
1. Receives unrestricted cash gifts of $210,000.
2. Pays salaries of $80,000, with $20,000 of that amount coming from purpose-restricted donated funds. Of the total salaries, 40 percent is for administrative personnel. The remainder is divided evenly among individuals working on research to cure the disease and individuals employed for fundraising purposes.
3. Buys equipment for $300,000 by signing a long-term note for $250,000 and using restricted funds for the remainder. Of this equipment, 80 percent is used in research. The remainder is split evenly between administrative activities and fundraising. The donor of the restricted funds made no stipulation about the reporting of the equipment purchase.
4. Collects membership dues of $30,000 in cash. Members receive a reasonable amount of value in exchange for these dues including a monthly newsletter that describes research activities. By the end of the year, 112/112 of this money had been earned.
5. Receives $10,000 in cash from a donor. The money must be conveyed to a separate charity doing work on a related disease.
6. Receives investment income of $13,000 from the permanently restricted net assets.
Pays $2,000 for advertising. The money comes from the income earned in (f).
Receives an unrestricted pledge of $100,000 that will be collected in three years. The entity expects to collect the entire amount. The pledge has a present value of $78,000. Related interest (considered contribution revenue) of $5,000 is earned prior to the end of the year.
7. Computes depreciation on the equipment bought in (c) as $20,000.
8. Spends $93,000 on research supplies that are used up during the year.
9. Owes salaries of $5,000 at the end of the year. None of this amount will be paid from restricted net assets. Half of the salaries are for individuals doing fundraising, and half for individuals doing research.
10. Receives a donated painting that qualifies as a museum piece being added to the entity’s collection of art work that is being preserved and displayed to the public. The entity has a policy that the proceeds from any sold piece will be used to buy replacement art. Officials do not want to record this gift if possible..
A. Prepare a statement of financial position for this not-for-profit entity for the end of the current year.
B. Prepare a statement of activities for this not-for-profit entity for this year.

Answers

Answer and Explanation:

Net assets:

Donor without restrictions $488400

Donor with restrictions. $320100

Liabilities:

Notes payable. $250000

Salaries payable. $5000

Deferred revenue $27500

Donated amount in separate entity $10000.

$1101000

Assets:

Cash $738000

Equipment $280000

Receivables $83000

$1101000

Notes:

1. Cash.

Beginning cash $700,000

contributions $210,000

less salaries $80,000

less equipment purchase $50,000

Membership dues $30,000

Add contribution $10,000

Add investment income $13,000

less advertisement pay $2,000

less pay for supplies $93,000

2.Pledges receivable:

$78,000 plus the $5,000 in interest for period

3. Equipment. acquired equipment at $300,000 during the year.

4. Accumulated Depreciation: depreciation amounted to $20,000 for the equipment purchased till date.

5. Deferred Revenue: deferred revenue amounts to 27500 in membership dues since they've only earned 1/12 of the $30000 in exchange transactions.

6. Notes Payable: amount accrued for equipment

7. Salaries Payable: salaries owed employees as at end of the year

9. Donated Amount in Separate Entity. The organization does not hold variance powers for the amount contributed by a donor and so it's a liability

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes concept testing, the next step is ________
A) commercialization
B) focus group surveys
C) concept development
D) post-testing
E) marketing strategy

Answers

Answer: commercialization

Explanation:

Concept testing is the stage at which survey is being carried out for a particular product. This is done in order to know how consumers will accept a new product before such product is finally introduced to the market.

Since the product has passed the concept testing, the next step will be commercialization. This is when the product is then introduced and the business is managed in order to make profit.

Answer:

E) marketing strategy

Explanation:

When a new product is the be introduced to the market there are various stages the it should undergo to ensure it has high quality and is well recieved by the consumer.

The various steps are:

- idea development

- focus group survey

- concept testing

- market strategy development

- product development

- test marketing

- commercialisation

When the new product is confirmed as a viable one marketing strategy development is started to see how product can best be delivered to the consumer

This stage comes after concept testing.

Which option, within the Word Options dialog box, allows users to add the Auto Text function to the Ribbon?

Answers

(B) coustmize ribbon

The customize ribbons option in Word Options dialog box, allows users to add the Auto Text function to the Ribbon.

What is Auto Text function ?

To save portions of a Word document for later use, utilize AutoText. For example, you could retain a convenient collection of headers and footers or build a library of sentences for business letters. Everything a Word document can contain, including formatted text, images, and fields, can be stored in an AutoText entry.

You can quickly speed up document creation using AutoText by adding predetermined text to your project.

In your Office applications, you can create and organize tabs and commands in the ribbon however you choose. Show or conceal the ribbon. Select the at the ribbon's right edge to make it invisible. Choose a tab to reveal the ribbon.

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The just meaningful difference (JMD) refers to: A. The process by which consumers give humanlike characteristics to inanimate objects. B. The smallest amount of change in a stimulus that would influence consumer consumption and choice. C. A situation where a stimulus is sufficiently stronger than another so that someone can actually notice that the two are not the same. D. The way in which consumers interpret information in ways that are biased by their previously held beliefs. E. The process of screening out certain stimuli and purposely exposing oneself to other stimuli.

Answers

Answer:

B. The smallest amount of change in a stimulus that would influence consumer consumption and choice.

Explanation:

The just meaningful difference (JMD) refers to the smallest amount of change in a stimulus that would influence consumer consumption and choice.

For instance, when the price of a particular product rises from $5.0 to $6.5, consumers wouldn't be motivated to buy such a product again and may choose to go for its close substitutes.

Hence, in marketing it is important to introduce a stimulus plan that will significantly increase consumer consumption and choice in order to increase sales and make profit.

Logano Driving Schoolâs 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018 balance sheet showed net fixed assets of $3.3 million. The companyâs 2018 income statement showed a depreciation expense of $319,000.What was net capital spending for 2018? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

$1,219,000

Explanation:

Calculation for the net capital spending for 2018

Using this formula

2018 Net capital spending=(2018 Net fixed assets-2017 Net fixed assets)+Depreciation expense

Let plug in the formula

2018 Net capital spending=($3,300,000-$2,400,000)+$319,000

2018 Net capital spending=$900,000+$319,000

2018 Net capital spending=$1,219,000

Therefore the 2018 Net capital spending will be $1,219,000

Consider the recorded transactions below.

Credit Debit

Accounts Receivable 7,900

Service Revenue 7,900

Supplies 2,050

Accounts Payable 2,050

Cash 9,700

Accounts Receivable 9,700 .

Advertising Expense 1,100

Cash 1,100

Accounts Payable 3,200

Cash 3,200

Cash 1,200

Deferred Revenue 1,200

Required:

Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each acc the transactions is: Cash, $2,900; Accounts Receivable, $3,700; Supplies, $350; Accounts Payable, $3,000; Deferred Reve Service Revenue and Advertising Expense each have a beginning balance of zero.

Answers

Answer:

gogle know the answer that is the secret

What is the value of $1000 investment that loses 5% each year for eight years

Answers

Answer:

$663.420

Explanation:

The value for the investment is the future of $1000, earning a compound interest of -5% for eight years.

The formula for compound interest is as below.

FV = PV × (1+r)^n

Fv = $1000 x ( 1 + (-5/100)^8

Fv= $1000 x (1 +(-0.05)^8

FV= $1000 x (0.95)^8

Fv=$1000x 0.6634204

Fv=$663.420

The value will be $663.42

Answer:

663.42

Explanation:

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Which situation best illustrates an effect of the law of demand?
A. A car company increases sales when incomes rise in a city.
B. More children go to a theme park after a competing park shuts
down.
C. Customers stop going to a restaurant after it raises its prices.
D. A shop orders more computers when their selling price increases.

Answers

The correct answer is C

Answer: C. Customers stop going to a restaurant after it raises its prices

Explanation: (apx)

A project has the following projected outcomes in dollars:______. $210, $340, and $520. The probabilities of their outcomes are 20%, 50%, and 30% respectively. What is the expected value of these outcomes?

Answers

Answer:

Expected value of these outcomes is $368

Explanation:

Expected value is the weighted average value of random variable. It is the sum of all the probable outcome.

Expected value can be calculated as follow

Outcomes ________ Probabilities _________ Expected values

$210 _______________ 20% ________________ $42

$340 _______________ 50% ________________ $170

$520 _______________ 30% ________________ $156

Total ____________________________________ $368

Marigold Corp. purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $86000. The December 31, 2020 adjusting entry is:____.a) debit Interest Expense and credit Interest Payable, $5,400.
b) debit Interest Expense and credit Interest Payable, $900.
c) debit Interest Expense and credit Interest Payable, $1,350.
d) debit Interest Expense and credit Cash, $900.

Answers

The options provided in the question are incorrect.

Answer:

31 Dec 2021

Interest expense    1290 Dr

    Interest Payable      1290 Cr

Explanation:

Under the accrual basis or principle of accounting, we match the revenue with the expenses and record the transactions in the period to which they relate to rather than when the cash is paid or received. This means that the interest payment that is accrued for time period relating to this year should be recorded as an expense in the current period and as a liability as it will be paid in the next period. Thus, the interest on the note relating to 2 months from November 2020 to December 2020 will be recorded as follows,

Interest expense = 86000 * 0.09 * 2/12 = 1290

31 Dec 2021

Interest expense    1290 Dr

    Interest Payable      1290 Cr

The transshipment problem: a. Is the special case of LP problem. b. Can be modeled using the transportation algorithm. c. Can be solved to optimality by manual methods. d. Is the most general type of network flow problems.

Answers

Answer:

Option "A" is the correct answer to the following question.

Explanation:

The transshipment issue is the particular case of the issue of LLP.

A special Linear Programming Problem is a transshipment problem because it approaches the premise that products can both be obtained and delivered at the very same time by both recovery and recycling.

Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $49,800. She has $820 per month of other debt and expects her property taxes and homeowners insurance to cost $270 per month. She knows she can get a 8.50%, 30-year mortgage so that her mortgage payment factor is $7.69. She expects to make a 25% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)
a) $21,110
b) $253,316
c) $63,329
d) $84,439
e) $48,710

Answers

Answer:

d) $84,439

Explanation:

We can use the rule of 28/36 to calculate Michelle's affordable home purchase. She should only spend up to 28% of her monthly income on housing expenses and up to 36% of her monthly income paying for debt service.

monthly salary = $49,800 / 12 = $4,150

her total monthly amount to pay for debt service = $4,150 x 36% = $1,494

she is already paying $820 per month for other debts, so her monthly payment should be less than: $1,494 - $820 = $674

her total monthly amount to pay for housing expense = $4,150 x 28% = $1,162

she is planning on paying $270 in related house expenses, so her monthly payment should be less than: $1,162 - $270 = $892

out of the five options, Michelle cannot afford to buy the $253,316 house, but she can afford to buy the $84,439 house.

[($21,110 x 0.75) / $1,000] x 7.69 = $121.75 monthly payment

[($253,316 x 0.75) / $1,000] x 7.69 = $1,461 monthly payment

[($63,329 x 0.75) / $1,000] x 7.69 = $365.25 monthly payment

[($84,439 x 0.75) / $1,000] x 7.69 = $487 monthly payment

[($48,710 x 0.75) / $1,000] x 7.69 = $280.93 monthly payment

Vaughan Company started the year off with an Accounts Receivable balance of $50,000. During the year credit sales were $949,000. Accounts Receivable at the end of year totaled $80,000. What is the average number of days it takes Vaughan Company to collect a receivable? (Do not round your answers in any part of this problem)

Answers

Answer:

25 days

Explanation:

To calculate the average number of days, we'll make use of the formula below;

= [(Average receivable / Net credit sales)] × 365

Average receivables = $50,000 + $80,000 / 2 = $65,000

Net credit sales = $949,000

Therefore,

Average collection period

= ($65,000 / $949,000) × 365

= 25 days

It will take Vaughan company 25 days to collect a receivable.

A management concept based on an understanding of the changing wants and needs of customers, and which leads to flexible product designs and production processes, is called:_______.A. Continuous improvement. B. Customer orientation. C. Just-in-time. D. Theory of constraints. E. Total quality management.

Answers

Answer:

customer orientation

Explanation:

customer orientation can be regarded as business approach where the company helps the customer to achieve their aim and goals.

________ is the process of training and educating employees to become good managers and then developing their managerial skills over time.A) Management development
B) Vestibule training
C) Pre-mentoring
D) Self-actualization training

Answers

Answer:

A) Management development

Explanation:

Management development is the process of training and educating employees to become good managers and then developing their managerial skills over time.

Personnel management can be defined as an administrative task or function which primarily involves the process of hiring employees and developing or training them to become beneficial and valuable for the growth and development of the company.

Hence, the main purpose and focus of personnel management is to provide a quality workforce necessary to successfully achieve the organizational set goals and objectives.

This ultimately implies that, the main purpose of a training focuses is to improve an employee's performance in his or her place of work while development is focused on preparing an employee for higher positions available in an organization.

The Republic of Yuck is a simple economy with no government, no taxes, and no imports and exports. Yuckers (citizens of Yuck) are creatures of habit. They have a rule that everyone saves exactly 22 percent of income. Assume that planned investment is fixed and remains at 67 billion Yuck dollars.Expert economists of the Republic of Yuck have estimated the following:Real GDP (Y) 192 billion Yuck dollarsPlanned Investment Spending (U): 67 billionYuck dollars You are asked by the business editor of the Weird Herald, the local newspaper, to predict the economic events of the next few months.Based on the information given above you predict that the inventories will _____ and output will _____ ,a. stay unchangedb increasec. decrease

Answers

Answer:

The inventories will decrease and output will increase

Explanation:

Note: The organized question is as attached

Real GDP is 192 billion

They consumes (100 - 22) = 78% of income.

Therefore, the consumption is 78% of 192 billion = 149.76 billion

The Investment is fixed at 67 billion . This implies that aggregate expenditure (AE = C + I) = 149.76 billion  + 67 billion  =  216.76 billion

Since Aggregate expenditure(AE) is greater than Real GDP (Y), It is likely that the inventories will decrease and the firms will produce more so that output will increase.

Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
A- $10,500
B- $30,772
C- $7,972
D- $ 31,400

Answers

Answer:

Gross profit earned = $7,972

Explanation:

Net sales = $35,000 - 3,600

Net sales  = $31,400

Merchandise cost = $24,500 - 1,700

Merchandise cost = 22,800

Discount allowed = [$31,400]2%

Discount allowed = 628

Gross profit earned = $31,400 - $22,800 - $628

Gross profit earned = $7,972

Luther Industries has 25 million shares outstanding trading at $18 per share. In addition, Luther has $150 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 40%. Luther's unlevered cost of capital is closest to:_______A) 11.5%B) 10.8%C) 9.8%D) 13.0%

Answers

Answer:

B. 10.8%

Explanation:

To get the Market value of equity = 25m x $18 = $450 million

The Market value of debt is given to be = $150 million

To get the weight of equity= 450/600

To get the weight of debt = 150/600

we have Ke as cost of equity= 13%

Such that after tax cost of debt = 7%(1-0.40) = 4.2%

Then the Weighted average cost of capital = We(Ke) + Wd(Kd)

= 450/600 x 13% + 150/600 x 4.2%

This gives us

= 9.75% + 1.05%

Therefore the answer is

= 10.80%

So the option B is correct

Luther's unlevered cost of capital is closest to 10.8%. Therefore, correct response here is option B.

What is the term cost of capital about?

A cost of capital refers to as a return that a company needs to earn in order to achieve the cost of capital of particular project.

Solution:

To get the Market value of equity = 25m x $18 = $450 million

The Market value of debt is given to be = $150 million

To get the weight of equity= 450/600

To get the weight of debt = 150/600

Ke as cost of equity= 13%

Such that after tax cost of debt = 7%(1-0.40) = 4.2%

Then, the Weighted average cost of capital = We(Ke) + Wd(Kd)

Weighted average cost of capital= 450/600 x 13% + 150/600 x 4.2%

Weighted average cost of capital= 9.75% + 1.05%

Weighted average cost of capital=10.80%

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Which of the following is a type of liability?

Answers

Answer:

Accounts Payable

Explanation:

Accounts Payable is the amount of money owed to its investors/creditors. Thus creating debt for the company, creating a liability.


A sentence that contains one independent clause and one or more dependent clauses is a

Answers

Answer:

Complex sentence they always have one independent clause + 1 or more dependant clause

Joined by using conjunctions!

Shawn goes to the library to pick up a copy of a common tax form used file taxes. Which of the following is MOST likely the form that Shawn got?

1099

W-2

1776

1040

Answers

Answer:

Shawn would choose form 1040 filing tax form.

Explanation:

The answer is D.) 1040

I got a picture of the answer.

Hope this helps!

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.


Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 90,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $1,080,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $1,098,900 and its actual total direct labor was 93,350 hours.


Required:

Answers

Answer:

1. Predetermined overhead rate = $12.50

2. Job Cost = $62,500

Explanation:

Note: The Requirement is attached as picture below

1. Predetermined fixed overhead rate = Estimated fixed manufacturing overhead / Estimated total amount of the allocation base

Predetermined fixed overhead rate = $1,080,000 / 90,000

Predetermined fixed overhead rate = $12 per Direct labor hour

The Predetermined variable overhead rate per Direct labor hour is $0.50

Predetermined overhead rate = Fixed overhead rate + Variable overhead rate

Predetermined overhead rate = $12 + $0.50

Predetermined overhead rate = $12.50

2. The total job cost is given below:

Job Cost = Direct material + Direct labor + Overheads

Job Cost = $38,000 + $21,000 + (280*$12.50)

Job Cost = $38,000 + $21,000 + $3,500

Job Cost = $62,500

You are the strategic leader of a highly competitive electronics company, Anderson Inc. Anderson Inc. is a global leader in electronics sales to corporate and international customers. The competitive nature of the market is creating the need to implement new and well researched strategies and online tools in order to compete with another company that is taking contracts from your organization daily. This other company, Henkerson Inc., is offering products at a slightly lower cost. Their customer service ratings, however, are much lower than Anderson Inc.

Anderson’s customer service could be superior as a result of :_________

Answers

Answer:

The options are missing, so I looked for similar questions. The option that I believe is correct is:

A good reputation for having few OOS (out-of-stock) problems when fulfilling large orders.

Customer service is extremely important in today's world were competition is fierce and global. The less competition, the less value customer service has, but companies from around the world compete against each other. E.g. if you do not like how some salespeople treat you at a certain store, you can go online and buy the same products from a retailer 2,000 miles away. You must always remember that keeping old customers happy and loyal is always much easier and cheaper than getting new customers.

In a B2B environment, costs are important, and any difference in costs is much more important because the quantities sold are larger. But if the company that sells the lower priced products offers a terrible customer service and is not able to fulfill orders in time, then B2B clients will leave them because time is money. Th elonger the lead time, the higher the stockout probabilities and you require a larger safety stock which costs money.

Troy's financial records for the year reflect the following: Interest income from bank savings account $1,440 Taxable annuity receipts 2,880 City ad valorem property tax on investments 216 Investment interest expense 5,040 Calculate Troy's net investment income and his current investment interest deduction. How is a deduction for any potential excess investment interest treated?Troy's net investment income is $_____and his investment interest deduction is $______investment interest expense not deducted this year is_____.

Answers

Answer:

net Investment income for Troy = $4,104.

Investment interest deduction = $4,104.

Brought forward.

Explanation:

So, from the question above we are his the folly information for the financial report of Troy.

=> Interest income from bank savings account = $1,440.

=> The Taxable annuity receipts = 2,880.

=> City ad valorem property tax on investments = 216.

=> Investment interest expense = 5,040.

Therefore, Troy's net investment income can be calculated by the addition of Interest income from bank savings account with The Taxable annuity receipts, that is;

Troy's investment income = Interest income from bank savings account + The Taxable annuity receipts.

Troy's investment income = $1,440 + 2,880 = $4,320.

Therefore, the net Investment income for Troy is calculated as;

The net Investment income for Troy = Troy's investment income - City ad valorem property tax on investments.

=>The net Investment income for Troy = $4,320 - $216 = $4,104

Therefore let's fill in the gaps given in the question:

"Troy's net investment income is $4,104 and his investment interest deduction is $4,104.

Investment interest expense not deducted this year is BROUGHT FORWARD"

Your local T-Spirit store is having a sale on the latest i-razpod cell phone. The store is also offering financing to those who
qualify. The new cell phone is on sale for $150.00 with a two year contract. The sales associate informs you that the
closed-end installment loan offered by the store is a 24 month installment plan with monthly payments of $8.44.
Determine the finance charge (interest) of the installment loan.
a $52.00
C. $54.30
b. $52.56
d. $56.10

Answers

Answer:

$52.56 on edge 2020

Explanation:

Answer:

b

Explanation:

yep

Blankenship Company operates a factory with two departments, X and Y. The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:a. Square Footage occupiedb. Machine Hoursc. Direct labor hoursd. Units sold

Answers

Answer:

a. Square Footage occupied

Explanation:

Machine hours is the cost drive of utilities (cost object); it is not the basis of allocation. Direct labor hours is the cost drive of utilities (cost object); it is not the basis of allocation. Unit sold is the basis of allocation of advertising; it is not the allocation bases of utilities.

Utilities expenses such as heat, water, and lighting are generally allocated based area occupied by the department. Hence, the option “square footage occupied” is the correct answer.

Question 1 of 10
What is one way banks can recover money they have loaned to someone who
has stopped making payments?
O A. Banks can require the borrower's friends and family to pay off the
loan.
B. Banks can have collection agencies seize part of the borrower's
income.
C. Banks can force the borrower's employer to fire him or her
immediately
D. Banks can make the borrower work at the bank for no salary.

Answers

Answer:

B. Banks can have collection agencies seize part of the borrower's income.

Explanation:

Hope it helps

Banks can recover money they have loaned to someone who has stopped making payments the banks can have collection agencies seize part of the borrower's income. Thus, option (b) is correct.

What is bank?

The term Bank refers to a financial institution that deals with money. For the aim of saving and investing, the individual deposits money into a personal account. Additionally, banks can offer loans and ATM services. There are two different kinds of banks, such as public and private ones.

The debtors give the loan to the bank, but as long as someone is not returned on payment, the bank can hire collection agencies. The collection agencies' main role is to collect money with interest from debtors.

Therefore, option (b) is correct.

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