If the two-year interest rates in Australia and the US are 7.5% and 5.25%, respectively, the two-year forward exchange rate (USD per AUD) is 0.8050.
The two-year forward exchange rate can be calculated using the interest rate parity formula:
F/S = e^(rd-rf) * (1 + rf)^n / (1 + rd)^n
Where:
F/S = the forward exchange rate
e = the current spot exchange rate
rd = the domestic interest rate (US)
rf = the foreign interest rate (Australia)
n = the number of periods (2 years)
Plugging in the values:
F/.7100 = e^(0.0525-0.075) * (1 + 0.075)^2 / (1 + 0.0525)^2
Solving for F:
F = .7100 * e^(0.0525-0.075) * (1 + 0.075)^2 / (1 + 0.0525)^2
F = .7100 * e^(-0.0225) * 1.1570 / 1.1086
F = .7100 * 1.1349
F = 0.8050
Therefore, the two-year forward exchange rate (USD per AUD) is 0.8050.
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kate expects to receive an annuity that pays $5,000 at the beginning of each year for 10 years. assuming the interest rate is 5%, what is the present value of this annuity? round your answer to the nearest dollar.multiple choice question.$38,609$62,890$40,539$66,034
The present value of an annuity of $5,000 per year for 10 years with an interest rate of 5% is $40,539.
The steps to arrive at this answer are as follows:First, we need to use the formula for the present value of an annuity. The formula is:
[tex]PMT*((1-(1/(1+r)^n))/r)[/tex]
where
PMT is the payment per period, r is the interest rate per period, and n is the number of periods.
In this case, PMT = $5,000, r = 5% (or 0.05), and n = 10 (since the annuity is for 10 years).
Substituting the values:
[tex]PV=5,000*((1-(1/(1+0.05)^1))/0.05)\\ =$40,539.11[/tex]
(rounded to the nearest dollar, which is $40,539).
Therefore, the answer to the multiple-choice question is $40,539.
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Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $180,000; estimated uncollectible= 10 % . E 7-13 Calculate uncollectible 2. Accounts 1-45 days past due $25,000; estimated uncollectible 3. Accounts more than 45 days past due$10,000; estimated uncollectible 30% , Before recording any adjustments, Dhaliwal has a debit balance of $45.000 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts is 18,750.
To estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts, we must calculate the estimated uncollectible amounts of each age group:
Accounts not yet due: 180,000 x 10% = 18,000Accounts 1-45 days past due: 25,000 x 3% = 750Accounts more than 45 days past due: 10,000 x 30% = 3,000Therefore, the total estimated uncollectible amount is 18,750.
To adjust the allowance for uncollectible accounts, Dhaliwal should record the following journal entry:
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NewTech Inc. is a manufacturer of PCs, and most of its revenue is generated by selling PCs to consumers. However, the company is struggling to extend the brand into other lucrative product lines such as tablets and smartphones. In this scenario, NovoTech is suffering from the error of ________.Select one:a. underpositioningb. repositioningc. overpositioningd. doubtful positioninge. confused positioning
In this scenario, NewTech is suffering from the error of over positioning. The correct option is c.
What is positioning?Positioning refers to the process of developing a unique image for a brand in the minds of customers in order to establish an identity and differentiate it from its competitors.
A company's positioning is the buyer's perception of the brand's overall quality, value, and benefits in relation to those of other brands in the same market segment. It is the company's unique value proposition, which emphasizes the benefits of the brand in relation to the competition.
NewTech Inc. is a manufacturer of PCs, and most of its revenue is generated by selling PCs to consumers. However, the company is struggling to extend the brand into other lucrative product lines such as tablets and smartphones.
Thus, it is correct to say that NewTech is suffering from the error of over positioning, according to the provided scenario.
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All Weather Company makes umbrellas and outerwear items for rainy and snowy days. It had the following cost structure for the past year: Items Umbrellas Clothing Total Units produced and sold 100,000 10,000 110,000 Average sales price per unit $12 $75 $1,950,000 Direct materials cost per unit $3 $16 $460,000 Direct labor cost per unit $1.50 $5.50 $205,000 Variable overhead per unit $0.60 $3.50 $95,000 Fixed overhead per unit $2.50 $11 $360,000 $0.40 $4 $80,000 Selling and administrative cost per unit Direct fixed selling and administrative costs Allocated fixed administrative costs $76,000 total $78,000 total $154,000 $51,000 total $37,000 total $88,000
a. What is the weighted average contribution margin per unit rounded to the nearest cent? b. Assume that the sales mix is quite constant. How many units of each product line are required to break even? c. What are the particular internal and external business risks that the company faces? d. Assume that the company wishes to generate $375,000 of operating income. How many units in total does the company need to produce and sell? e. Assume the company wants to earn a $105,000 target operating income. What sales revenues must be generated? f. Many more umbrellas are sold than clothing. Should more advertising and other efforts be directed toward promoting the clothing lines in an effort to increase the number of units sold?
a. The weighted average contribution margin per unit is $14.17 rounded to the nearest cent. and b. To break even, the company must produce and sell 57,400 umbrellas and 5,300 clothing items.
a. The weighted average contribution margin per unit is $14.17 rounded to the nearest cent. This is calculated by taking the total contribution margin ($1,954,000) and dividing it by the total number of units produced and sold (110,000).
b. To break even, the company must produce and sell 57,400 umbrellas and 5,300 clothing items. This is calculated by taking the total fixed costs ($888,000) and dividing it by the contribution margin of each product.
c. The company faces internal business risks such as changes in the sales mix, cost increases, and other operational issues. The company also faces external risks such as competition, economic conditions, and changes in consumer tastes.
d. To generate $375,000 of operating income, the company must produce and sell 29,739 umbrellas and 2,770 clothing items. This is calculated by taking the operating income desired ($375,000) and dividing it by the contribution margin per unit ($14.17).
e. To earn a $105,000 target operating income, the company must generate $739,244 in sales revenues. This is calculated by taking the target operating income ($105,000) and dividing it by the contribution margin per unit ($14.17).
f. Yes, more advertising and other efforts should be directed towards promoting the clothing lines in order to increase the number of units sold. Advertising and promotion can create more awareness of the company’s products, increase consumer demand, and ultimately increase sales and profitability. In addition, since more umbrellas are sold than clothing, by promoting the clothing lines, the company can better balance the sales mix and achieve higher profits.
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When the demand for loanable funds exceeds the supply of loanable funds, households want to save less than firms want to invest and the interest rate rises.
Yes, When the demand for loanable funds exceeds the supply of loanable funds, households want to save less than firms want to invest and the interest rate rises.
What happens when the demand for loanable funds exceeds the supply of loanable fundsIn the market for loanable funds, the demand for loanable funds represents the amount of money that households and firms want to borrow for investment or consumption purposes, while the supply of loanable funds represents the amount of money that households and firms want to save and lend out.
When the demand for loanable funds exceeds the supply of loanable funds, it means that there is more demand for borrowing than there is supply of savings available to lend out. This can occur when firms are optimistic about the future and want to invest in new projects, or when households want to increase their consumption and take out more loans.
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Business level strategy addresses two related issues: what businesses should a corporation compete in and how can these businesses be managed so that they create synergy. True or False
It is true that the Business level strategy addresses two related issues: what businesses should a corporation compete in and how can these businesses be managed so that they create synergy. The correct option is True.
What is a business-level strategy?
A business-level strategy is a process that an organization uses to determine how to compete in its particular market. A company's business-level strategy is typically expressed in its mission statement and strategic goals. It is the strategic approach that a company employs to gain a competitive advantage by utilizing its core competencies in a given industry or market sector.
What is the significance of the business-level strategy?
In any organization, the business-level strategy is critical. It aids in the decision-making process and aids in identifies the core competencies that provide the company with a competitive advantage. In addition, it serves as a roadmap for ensuring that the company achieves its strategic objectives.
Therefore the correct option is true.
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What is ONE danger in focusing a financial analysis solely on the data found in the historical financial statements?
One danger in focusing a financial analysis solely on the data found in the historical financial statements is that the past financial performance is not always an accurate predictor of future performance.
A financial statement is a record of the financial activities of a business or individual, which provides information on how money has been earned, spent, and saved over time. The financial statements consist of a balance sheet, an income statement, a statement of retained earnings, and a statement of cash flows. The historical financial statements of a company are valuable sources of information for analysts and investors. Still, they should not be the only source of information for financial analysis.
The limitation of historical financial statements as the sole source of information for financial analysis is that they report on past financial performance, which may not accurately predict future financial performance. Economic conditions, competition, management changes, and other factors can all have a significant impact on a company's financial performance.
As a result, financial analysts must use other sources of information, such as economic data, market trends, and management interviews, to develop an accurate financial analysis. To sum up, focusing a financial analysis solely on the data found in the historical financial statements is a dangerous approach as past performance does not necessarily predict future performance.
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the price of a big mac in the u.s. is $3.41 and the price in mexico is peso 29.0. what is the implied ppp of the peso per dollar?
As the price of a big mac in the US. is $3.41 and the price in Mexico is peso 29.0, the implied PPP of the peso per dollar is 8.50.
To calculate the implied purchasing power parity (PPP) of the peso per dollar, we need to compare the prices of the same good (in this case, a Big Mac) in both countries using their respective currencies.
The price of a Big Mac in the U.S. is $3.41, and the price in Mexico is 29.0 pesos. To calculate the implied PPP, we divide the Mexican price by the U.S. price:
Implied PPP = Price in Mexican pesos / Price in U.S. dollars
Implied PPP = 29.0 / 3.41
Implied PPP = 8.50
Therefore, the implied PPP of the peso per dollar is 8.50. This suggests that according to the Big Mac Index, the peso is undervalued relative to the U.S. dollar, as the implied PPP is lower than the current exchange rate of the peso to the dollar.
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Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $60 per share. The initial margin requirement was 50% (The margin account pays no interest). A year later, the price of Internet Dreams has risen from $60 to $69.50, and the stock has paid a dividend of $7.80 per share.a. What is the remaining margin in the account?b. What is the margin on the short position?c. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?d. What is the rate of return on the investment?
The remaining margin in the account is $35,000, and the margin on the short position is 50% of the stock price, which is $34.75 per share, the old Economy will receive a margin call, and the rate of return on the investment is the total gain divided by the initial margin requirement is 57.7%.
a. The remaining margin in the account is $35,000, calculated as follows:
Initial margin requirement: 50% x $60 x 1,000 shares = $30,000
Price increase: ($69.50 - $60) x 1,000 shares = $9,500
Dividend paid: $7.80 x 1,000 shares = $7,800
Total gain: $9,500 + $7,800 = $17,300
Remaining margin: $30,000 - $17,300
= $35,000
b. The margin on the short position is 50% of the stock price, which is $34.75 per share (50% x $69.50 = $34.75).
c. Yes, Old Economy will receive a margin call, since the maintenance margin requirement of 30% is less than the remaining margin in the account ($35,000) divided by the number of shares sold short (1,000), which is 35.
d. The rate of return on the investment is the total gain divided by the initial margin requirement:
($17,300/$30,000) = 57.7%.
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Patents on inventions such as technological innovations help the economy by _________a. Allowing he government to make money from new inventions
b. Common property
c. Providing government money for the developement of new products
d. Protecting intellectual property and fostering entrepreneurship
The correct option is D, Patents on inventions such as technological innovations help the economy by Protecting intellectual property and fostering entrepreneurship.
Entrepreneurship is the process of identifying a business opportunity and creating a new enterprise to pursue that opportunity. It involves taking risks and making decisions based on limited information and uncertain outcomes, with the goal of creating value and generating profit. Entrepreneurship can take many forms, including starting a new business, creating a new product or service, or developing a new market.
Entrepreneurship plays a critical role in driving economic growth and innovation, as new businesses create jobs and introduce new products and services to the market. As such, entrepreneurship is often encouraged and supported by governments, universities, and other organizations through funding, education, and other resources.
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which of tenets of the the eller way advances the principle of do the right thing 100 percent of the time?
Integrity in the Eller Way: Always act morally upright. -Innovation: Creatively foresee change and take use of it.
What exactly does Eller College's mission statement say?The objective of the Eller College of Management is to prepare the next generation of responsible, global leaders with the skills and motivation to make a difference in the rapidly evolving business world. It also tries to find and disseminate fresh information that will influence the direction of business.
What percentage of CEOs at the Eller School of The receive acknowledgement?37 part-time MBA students from the University of Arizona's Eller College of Management received their degrees in 2022. Applications must be submitted by students who plan to enroll in the autumn 2023 term.
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A client wishes to roll over a qualified IRA into another qualified IRA. This can normally be performed on a tax-free basis without penalty, as long as a minimum of how many days have passed since the client's last rollover of the same type?
A client wishes to roll over a qualified IRA into another qualified IRA.
This can normally be performed on a tax-free basis without penalty, as long as a minimum of 365 days have passed since the client's last rollover of the same type. How many days must have passed for a tax-free rollover of the same type?
The Internal Revenue Service (IRS) allows you to do a tax-free transfer of IRA money into another IRA of the same sort, with the exception of SIMPLE IRA contributions in the first two years. A tax-free rollover is also possible as long as a minimum of 365 days have passed since your last rollover of the same type.
To summarize, the IRS allows for a tax-free transfer of IRA money to another IRA of the same sort, except for SIMPLE IRA contributions made in the first two years. A tax-free rollover is also possible if at least 365 days have passed since the last rollover of the same type.
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describe the scientific management approach that was embraced by henry ford in his early assembly lines and explain why this may be useful and/or limited in the current
The scientific management approach that was embraced by Henry Ford in his early assembly lines and explain why this may be useful and/or limited in the current context.
About scientific management approachThe scientific management approach was embraced by Henry Ford in his early assembly lines because he believed that the productivity of workers would increase if each person had a particular set of tasks to perform.
As a result, he created a system that was highly structured and efficient, allowing him to mass-produce automobiles at a low cost. He applied various scientific management principles to his production lines, such as breaking down tasks into smaller, more manageable parts, determining the best way to perform each task, and then training workers to perform their assigned tasks effectively.
He also emphasized the importance of standardization, which meant that each worker had to perform tasks in the same way every time, ensuring that products were consistent in quality and that the assembly line operated efficiently.
Why this may be useful and/or limited in the current context:
Although Ford's assembly line system was highly effective in its day, it has some limitations in the current context. For example, the principles of scientific management are often viewed as being too rigid and inflexible. Today's workers are less willing to perform the same tasks over and over again, and they are more likely to prefer jobs that offer a greater degree of variety and autonomy. Moreover, there is more emphasis on collaboration and teamwork today, which runs counter to the highly structured approach that Ford implemented.In conclusion, although the scientific management approach was an important development in the early 20th century, it is not always the best fit for today's workplaces. Managers must be willing to adapt to changing conditions and to find new ways of improving productivity and efficiency.
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the innovation matrix identifies three levels of change and innovation. they include_____, ____, and____ (select three)
a. Revolutionary innovation
b. Transformational innovation
c. Core innovation
d. Fundamental innovation
e. Adjacent innovation
The innovation matrix identifies three levels of change and innovation. They include Revolutionary innovation, Transformational innovation, and Core innovation. The correct options are a, b, and c.
What is innovation?Innovation is the implementation of a new or improved product, service, or process that generates value for the customer. According to McKinsey & Company, innovation can be classified into three types: core, adjacent, and revolutionary.
Core innovation is when a company focuses on making small improvements to its existing products or services to improve its performance or quality. These are often done by businesses that are not able to commit to larger changes or are not in a position to be able to take risks.
Adjacent innovation is when a business develops products or services that are slightly different from what it currently offers. It requires a company to expand its focus to include new customers, technologies, or geographies.
Revolutionary innovation is when a company creates a new product or service that changes an existing market or creates a new one. It often requires significant changes to a company's existing business model, technology, or resources.
Therefore, the correct options are A, B, and C.
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Billie Jo values a stainless steel dishwasher for her new house at $500, but she succeeds in buying one for $425. Billie Jo's willingness to pay for the dis A. $500. B. $850. C. $425. D. $150.
From the information presented in the text above, its availability in buying a stainless steel dishwasher is a). $500.
Willingness to pay is the willingness of an individual to pay for an assessment of environmental conditions or natural resources and services in order to improve the quality of the environment.
Willingness to pay is the maximum price a buyer is willing to pay for a good. Billie values a stainless steel dishwasher for her new house at $500, but she succeeds in buying one for $425. So, willingness to pay for the dishwasher is $500 as per the given information. The correct option is a). $500.
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What the name of organization that reduces risks on both sides of international business deals by linking buyers and sellers in different countries?
The organization that reduces risks on both sides of international business deals by linking buyers and sellers in different countries is known as an Export-Import Bank (EXIM Bank).
EXIM Banks provide various financial services, including loans, guarantees, and insurance, to support and promote international trade. They help businesses overcome the challenges and risks associated with exporting and importing, such as political instability, currency fluctuations, and payment defaults. By providing financing and credit support, EXIM Banks facilitate trade and enable businesses to expand into new markets. They also contribute to the economic development of both exporting and importing countries by fostering increased trade and investment.
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which of the following best fits the definition of a small business? a. a manufacturer with 75 investors b. a hardware store franchise with 20 employees c. a fast-food franchise with locations in three states d. all of these are correct.
The right response is (b). A small business is defined as "a hardware shop franchise with 20 employees".
What is a small business, and give an example?Small businesses are typically either service providers or retail establishments including grocery stores, pharmacies, tradesmen, bakeries, and micro-manufacturing facilities. Small businesses are individually held companies that need less equipment, labour, and cash than larger companies.
Which of the following contributes most to a small business's success?The three most crucial success criteria for expanding businesses will always be money, marketing, and product, even if each is equally important.
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allowing credit cards, returns or discounts for early payment affects the recording of ____.
In the following question, Allowing credit cards, returns or discounts for early payment affects the recording of "accounts receivable."
Accounts receivable is a term used to describe funds owed to the organization by the debtor for the delivery of goods or services on credit. Accounts receivable are a significant part of a company's balance sheet, and they have a direct impact on the firm's cash flow and profitability.
Accounts receivable are frequently recorded on the balance sheet as an asset. At the end of each reporting period, the accounts receivable balance is recalculated based on the amount of accounts receivable that have been paid off or written off as uncollectible debts. The accounts receivable balance is the starting point for calculating the company's net income, and it also has an impact on the company's tax obligation.
When a customer makes a purchase using a credit card, the company must record it as a debit to its cash account and a credit to its accounts receivable account. If the customer returns the item, the company must issue a credit memo, which will decrease the company's accounts receivable.
If the company grants a discount to a customer for early payment, the discount will be recorded as a debit to the company's discount account and a credit to the customer's account receivable account.
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true or false? in general, improvements in technology used in production will result in an increase in supply.
True. In general, improvements in technology used in production will result in an increase in supply.
When there is technological improvement, the efficiency of a company is increased. The production of the company is increased in less time, less resources and less manpower. This means that the company can produce more products and supply more goods and services to the market. Therefore, there is an increase in supply.The production process is streamlined when the technology used is improved.
Improved technology lowers the production cost and leads to an increase in supply. This in turn leads to an increase in profits for the company. In general, technological improvements are good for production and increases supply of goods and services to the market.Therefore, the statement is true. Improvements in technology used in production will result in an increase in supply.
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bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. he'll never earn much, but he and his family are happy. which type of small business does bailey have? a. high-potential venture b. lifestyle business c. gazelle d. attractive small firm
Bailey has a lifestyle business. A lifestyle business is a small business that is designed to generate a certain amount of income but is not necessarily designed to grow beyond its current size.
What is a lifestyle business?A lifestyle business is a small business venture that is focused more on the owner's goals and desires than on generating income. They are usually run by a single entrepreneur, although they may employ a few people.
These businesses are typically flexible, easy to manage, and do not require a lot of effort or commitment to operate. Lifestyle companies, on the other hand, aren't designed for expansion or high growth. They're constructed around the owner's goals and wishes, which may include more flexibility, independence, or self-employment than a regular business.
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mortgage-backed securities are commonly contained within collateralized debt obligations. a. true b. false
Mortgage-backed securities are commonly contained within collateralized debt obligations. The given statement is True.
What's Collateralized debt obligationsCollateralized debt obligations (CDOs) are a category of structured asset-backed securities that are backed by pools of various fixed-income assets such as commercial mortgages, residential mortgages, and corporate bonds.
Mortgage-backed securities (MBS) are an example of a fixed-income asset that can be used to back a CDO. CDOs are similar to collateralized mortgage obligations (CMOs) in that they pool mortgage-backed securities and issue new securities that are secured by the underlying assets.
In this manner, the CDO's underlying asset pool may be broken down into many tranches with varying risk profiles, providing investors with a range of risk-reward tradeoffs to choose from.
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why did my payment get declined when i'm trying to pay the bill to have my mail forwarded to my new address
Your payment may get declined when you are trying to pay your bill to have your mail forwarded to your new address due to insufficient funds, using an expired or canceled card, entered incorrect card details, blocked card, or verification issues.
When you are trying to pay your bill to have your mail forwarded to your new address and your payment gets declined, there may be several reasons why this has happened. Here are some possible explanations:
Insufficient funds: You may not have sufficient funds in your account to cover the cost of the mail forwarding service that you are trying to purchase. Check your account balance and make sure you have enough money to pay for the service. Using an expired or canceled card: If you are using a credit or debit card to make the payment, ensure the card is still valid and has not expired. Also, make sure that the card has not been canceled or reported as lost or stolen. Entered incorrect card details: Double-check the card details that you have entered to make sure that they are correct. Sometimes, the smallest mistake in entering your card number or the expiration date can result in a declined payment.Blocked card: Your bank may have blocked or restricted your card due to suspicious activity or other security concerns. Contact your bank to resolve the issue. Verification issues: Some payment processors may require additional verification or information from you to complete the payment. Check your email or contact the payment processor to see if any additional information is needed.Learn more about declined card at https://brainly.com/question/30081405
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Joan bought a bond several years ago for $23,000, Today, the value has declined to $18,000. If Joan gifts the bond to her brother today, all the following statements are true except?
A. If he sells the bond for $18,000 or less, his basis will be $18,000 and his holding period will be short-term.
B. If he holds the bond for 6 months, the price recovers and he sells it for more than $23,000, his basis will be $23,000 and his holding period will be short-term.
C. If he sells the bond for more than $18,000 but less than $23,000 there will be no gain whatsoever and the holding period wonÕt matter.
D. If he sells the bond in 10 months for $23,000 exactly, there will be no gain but the holding period will be long-term.
A. If he sells the bond for $18,000 or less, his basis will be $18,000 and his holding period will be short-term.
The correct option is A Explanation: Gifting the bond to her brother means that the recipient's basis is the lesser of the donor's adjusted basis or the fair market value on the date of the gift. Here the adjusted basis is $23,000 and the fair market value on the date of the gift is $18,000. Therefore, the brother's basis is $18,000.Short-term holding period:
If the holding period is less than a year, the holding period is short-term. Long-term holding period: If the holding period is more than a year, the holding period is long-term. Students can use the following option to identify which option is true: If the price of the bond goes above $23,000, then he'll make a gain.If the price of the bond goes down, then he'll lose money. If he sells the bond for $18,000 or less, his basis will be $18,000 and his holding period will be short-term.
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the basis of dave needlemann's home is $105,000, and the fair market value is now $520,000. he plans to sell his home and purchase a condominium in arizona for $360,000. broker fees for the sale should be $26,000. using these figures, which of the following amounts is his taxable gain?
The amount of taxable gain will be $389,000.
This calculation is done by subtracting the basis from the fair market value of his home, then subtracting the costs of selling the house and buying a new condominium.
What is Dave Needleman's taxable gain? Dave Needleman's taxable gain is $389,000.The formula to calculate taxable gain is: Taxable gain = Fair market value of the property - Selling cost - Basis Dave Needleman's basis = $105,000Fair market value = $520,000Cost of the new condominium = $360,000Broker fees = $26,000First, we have to calculate the amount that Dave Needleman earned from the sale of his house:$520,000 - $26,000 - $105,000 = $389,000This is Dave Needleman's taxable gain.
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in terms of cost allocation, the overhead amount to be allocated is known as the group of answer choices cost driver cost pool fixed costs budgeted costs
Regarding cost allocation, the amount of overhead to be allocated is called the ''cost pool''.
What is cost allocation?Cost allocation refers to the method of dividing up and assigning the expenses or costs of a business across its various departments or products. This process can be used to assign expenses from a common cost pool to individual cost objects, making it easier to manage budgets and monitor performance.
Cost allocation necessitates the identification of activities that generate overhead costs and the allocation of those costs to each product or service produced. Cost allocation necessitates the use of a cost pool, which is a collection of indirect costs that are distributed to various cost objects.
In conclusion, the correct answer is ''cost pool''
The full question is:
In terms of cost allocation, the overhead amount to be allocated is known as:
- Cost driver
- Cost pool
- Cost fixed
- Cost budgeted
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Consider the simple Keynesian model in the AD-AS framework. Currently the economy is located in the horizontal section of the AS curve producing Q1. If aggregate demand rises, then
a.the price level will rise.
b.the price level may rise.
c.the price will decline.
d.Real GDP will rise.
e.none of the above
If aggregate demand rises the answer is d. Real GDP will rise. Consider the simple Keynesian model in the AD-AS framework.
In the AD-AS framework, if aggregate demand increases, it will shift the AD curve to the right, resulting in an increase in both the price level and real GDP. This is because the AS curve is initially in a horizontal position and will remain so until the equilibrium point (Q1) is reached. At that point, the AS curve will become vertical and any further changes in AD will be reflected in a change in the price level, while real GDP remains the same.
An increase in aggregate demand means that the total demand for goods and services in an economy has increased, leading to an increase in the overall price level (inflation) and an increase in real GDP (economic growth), provided that there is spare capacity in the economy.
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joaquin and jill are thinking of expanding their pet store business by using the large unused space at the back of their store. since they do not know how to do this, they decide to conduct some marketing research. before they can even begin their actual research, however, what is the first thing they must do?
The first thing Joaquin and Jill must do before conducting marketing research is to create a plan.
This plan should include a clear goal, objectives, and methodology.
Creating a plan will ensure that the research is organized and efficient, and will also help guide the research process. The goal should be a broad statement of what Joaquin and Jill want to achieve through the research.
The objectives should be the specific information they need to learn in order to reach the goal, while the methodology should outline the strategies that will be used to gather the necessary information.
This could include surveys, focus groups, interviews, or other research techniques. Having a plan in place will ensure that Joaquin and Jill have a clear path for the research process.
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explain why manufacturing overhead cost shifts from model n 500 to model n 800 xl under activity - based costing
Activity-based costing (ABC) is a costing technique that allocates manufacturing overhead costs to products based on their individual cost drivers.
Reasons for shifting Model N 500 to Model N 800 XLManufacturing overhead costs shift from Model N 500 to Model N 800 XL under activity-based costing because of the following reasons:
The models N 500 and N 800 XL have differences in terms of cost drivers and consumption of each activity, resulting in a shift in manufacturing overhead costs. This change could be a result of either an increase or a decrease in the amount of activity-based overhead costs associated with producing Model N 800 XL as compared to Model N 500. Ultimately, activity-based costing allows for more accurate costing of products as it considers a wider range of factors that contribute to the overhead costs of a product.
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what does this behavior accomplish for the firm? relate your answer to the observation that a typical supermarket stocks about 30,000 products.
This behavior allows the firm to capitalize on economies of scale. By stocking around 30,000 products, the supermarket is able to purchase large quantities of the same products, thus receiving a better price from suppliers and reducing costs.
This allows the firm to increase its profitability while still providing its customers with a wide variety of products.
The behavior of a typical supermarket of stocking about 30,000 products is aimed at accomplishing the following for the firm:
To attract and retain customers: Supermarkets stock a wide variety of products to cater to the diverse needs of their customers. By offering a large selection of products, they attract more customers who prefer a one-stop shop for all their needs.
For revenue generation: Stocking a wide variety of products allows the supermarket to increase its sales and revenue. Offering a diverse range of products makes it more likely for customers to find something they need and make a purchase, which will ultimately lead to more sales and profits.
To increase customer loyalty: By stocking a wide range of products, a supermarket can also increase customer loyalty. Customers are more likely to return to a store that offers the products they need instead of searching for a store that sells the specific item they require.
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the point at which average total cost is minimized is known as marginal cost (true or false)
Marginal cost is the price at which the average total cost is minimized. This statement is false.
Marginal cost refers to the additional cost incurred by producing one additional unit of output. In other words, it is the cost of producing one more unit. Marginal cost is an important concept in economics because it helps firms determine the optimal level of production to maximize profits.
Firms will continue to produce as long as the marginal cost is less than the market price of the good, as each additional unit produced will generate additional revenue. On the other hand, the minimum efficient scale (MES) is the level of output at which the average total cost (ATC) of production is minimized.
This means that at the MES, the firm is able to produce goods or services at the lowest possible cost per unit. Operating at the MES can give firms a competitive advantage by enabling them to produce at lower costs than their competitors.
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