one-year treasury securities yield 4.65%. the market anticipates that 1 year from now, 1-year treasury securities will yield 5.4%. if the pure expectations theory is correct, what is the yield today for 2-year treasury securities? calculate the yield using a geometric average. do not round intermediate calculations. round your answer to two decimal places.

Answers

Answer 1

The yield today for 2-year treasury securities is 5.02%.

What are treasury securities?

Treasury securities, which include Treasury bills, notes, and bonds, are debt obligations issued by the United States Treasury. Treasury securities are regarded as one of the safest investments since they are backed by the United States government's full faith and credit.

The yield will be calculated thus:

2-yr T-sec Yield = [(1 + 1-yr Yield) * {1 + E(1-yr rate, 1 yr frm now)}]^1/2- 1

= [(1 + 0.0465) * (1 + 0.054)]^1/2 - 1

= [1.1030]0.5 - 1

= 1.0502 - 1

= 0.0502, or 5.02%

The yield is 5.02%.

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Related Questions

the united auto workers bargained for higher wages and more benefits for autoworkers. as a result of the higher wages and increased benefits, i. the quantity of new automobiles supplied decreases. ii. the supply of new automobiles decreases. iii. the supply of new automobiles increases.

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The united auto workers bargained for higher wages and more benefits for auto workers, and as a result of the higher wages and increased benefits, the supply of new automobiles decreased.

So, the correct option is ii.

The number due to continued labor shortages and the fact that workers didn't always feel valued while putting in long hours during the epidemic, they have become more confident in demanding more from their employers. Fewer cars are produced. The UAW is battling in the state and federal capitals for fairer taxation, cleaner air and water, stronger worker's compensation and unemployment insurance legislation, safe health care and pensions for retirees, and better schools for children.

The United Car Workers Union is a labor group that represents employees in the auto manufacturing sector as well as small manufacturers, state and local governments, educational institutions, medical facilities, and for-profit businesses.

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suppose an annuity pays 12% annual interest, compounded monthly. to save for retirement, you invest in this annuity, contributing $450 every month for 10 years. what is the balance in this account after 10 years? enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma. (for example $12,970.21 should be entered as 13000).

Answers

The value of annuity at the end of 10 years is $ 4225.094167

Use a formula to determine the annuity in case of periodically deposit as

Annuity factor = {[(1+r)^n] - 1} / r

Where P is periodic deposit amount interests,

r rate annually is the number of times compounded annually and

t is time in a year.

We have been given that investment in an annuity that pays 12% interest, compounded annually. You contribute $4,50 each year for 10 years

Here,

P = $450, r = 12% = 0.012,

t =10 years

Annuity factor = [(1 + 0.012)^10-1] / 0.012

Annuity factor = 4225.094167

The value of annuity at the end of 10 years is $ 4225.094167

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the labor force is 300 million, there are 270 million employed people. 20 million have stopped looking for work. all of these people are working-age non-institutionalized adults. what is the unemployment rate? no percent sign needed.

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The rate of a nation's actively working labor force, which includes both employed and unemployed workers, is referred to as labor force participation in the labor market.

It is stated that there are 300 million people employed, of which 20 million are discouraged. As a result, there are now 280 million people employed. As a result, the following numbers can be used to estimate the LFPR:

LFPR equals 280/300 million working-age non-institutionalized adults, or 93.33 percent

Workforce: total number of employed and unemployed workers. Formula: The labor force is the sum of the employed and unemployed.

By dividing the number of unemployed people by the total number of people employed and then multiplying by 100, we can determine the unemployment rate.

Those in the civilian non-institutional population over the age of sixteen who are either employed or seeking employment are referred to as "in the labor force."

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a company manufactures and sells a product for $124 per unit. the company's fixed costs are $69,960, and its variable costs are $94 per unit. the company's break-even point in units is:

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The company's break-even point in units is 2332 if it sells a product for $124 per unit.

The break-even point is a term used in economics that describes the point at which the total expenses and the total revenue are equal

The break-even point can be determined by the following formula;

Break-even point = Fixed cost ÷ {Price - Variable cost}

As the company sells a product for $124 per unit and its fixed cost are $69,960 and variable costs are $94 per unit, substituting these values in the break-even point equation as follows;

Break-even point = 69,960 / (124 - 94)

Break-even point = 69,960 / 30

Break-even point = 2332

Hence, the company's break-even point in units is calculated to be 2332.

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knowing how much money an economy has matters because it helps determine:multiple choice question.interest rates and prices.productivity and employment.employment and prices.interest rates and employment.

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Knowing the amount of money an economy has, matters because it helps determine interest rates and employment.

What is an economy?

An economy can be described as the process of production as well as the consumption of the goods as well as the services that can be seen in a particular country is a given period of time.

It should be noted that Knowing how much money an economy do help[ alot to know about the interest rates in the economy and this will help the financial institutions to adjust in the economy.

Therefore, the last option is correct.

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the bank credited your account for a deposit that should have been deposited into another customer's bank account, not yours. this bank error should be a(n) blank on a bank reconciliation.

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The bank credited your account for a deposit that should have been deposited into another customer's bank account, not yours. this bank error should be a deduction from a bank balance on a bank reconciliation.

What is bank reconciliationn?

A bank reconciliation is the process of reconciling an entity's books of account bank account balance with the balance reported by the financial institution on the most recent bank statement in bookkeeping.Bank statements are typically routinely produced by the financial institution and used by account holders to perform their bank reconciliations. Any difference between the two figures needs to be examined and, if necessary, rectified.

There are three main causes of differences between an organization's books of account and the bank's records: 1) Timing differences in recording entries2) Transactions that are not recorded by the account holder but are recorded by the bank.3) Errors in the records.

Occasionally, it may be simple to reconcile the difference by examining the entity's own accounting records (cash book) and the transactions in the bank statement since the last reconciliation to see if any of them match the difference that needs to be explained.Otherwise, it might be necessary to match every transaction that has occurred since the last reconciliation in both sets of records and determine which transactions remain unmatched.The necessary adjustments should then be made in the cash book, or if necessary, they should be reported to the bank, and any timing differences should be recorded to make future reconciliations easier.

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Match the items with their descriptions.
copyright owner
fair use of copyright materials
government publications
a life span of 20 years
use and display the copyrighted material
exempt from the Copyright Law
paraphrase articles for news reports
patents

Answers

Each of the items should be matched with the correct and appropriate descriptions as follows:

Government publications: a life span of 20 years.Copyright owner: use and display the copyrighted material.Fair use of copyright materials: exempt from the copyright law.Patents: paraphrase articles for news reports.

What is copyright law?

Copyright law simply refers to a set of formal rules and regulations that are granted by the government to protect an intellectual property (IP), especially by giving the creator or original author an exclusive right to use during his or her lifetime, while preventing any unauthorized access, unlawful use or duplication by other parties.

In this context, we can reasonably infer and logically deduce that a copyright grants a creator the exclusive right to use the creation during his or her lifetime, including the creator's heirs for 70 years after the creator's death.

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Government publications- a life span of 20 years. Copyright owner - use and display the copyrighted material. Fair use of copyright materials - exempt from the copyright law. Patents - paraphrase articles for news reports.

What is Government publications?

A government publication is defined as "informational material issued as an individual document at Government expense, or as required by law" under the United States Code.

Census data, statistical information, reports, journal articles, Royal Commission findings, parliamentary documents, legislation, and legal citations are a few examples of government publications.

Thus, statements are match correctly above.

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differences across international markets in voltage patterns affect the blank element of the marketing mix. multiple choice question. promotion price product place

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Differences across international markets in voltage patterns affect the product element of the marketing mix.

What is the marketing mix?

This is the term that is used to refer to the combination of products that has to do with the price, the places and the promotions of the products as well.

It is a combination of all of the elements that I have mentioned above that is referred to as the four Ps.

The four elements in the marketing mix are known to have a strong dependency level within themselves.

Hence the product is the solution that we have here because it is the differences that lies in the voltage patterns.

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carlos is an hr manager in a manufacturing plant who wants to motivate his employees. he uses job characteristics theory to guide him. one step carlos will take is:

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Helping workers understand how their efforts result in a finished product that pleases customers is one action Carlos will take as an HR manager who wants to motivate his employees.

What are the 5 core job characteristics in the Job Characteristics Theory.

The five "core" job characteristics according to the Job Characteristics Theory are:

Skill Variety: The extent to which different activities are required in the profession, necessitating the development of a variety of skills and talents on the part of the employee.Task Identity: The extent to which the job demands the employee to identify and carry out a task from beginning to end so that the result is obvious.Task Significance: The impact a job has on other people's life. The effects could be felt within or externally.Autonomy: How much flexibility, independence, and discretion is given to an employee to plan out the task and choose the processes to be followed?Feedback: How much knowledge of the outcomes, i.e., precise, understandable, thorough, and useful information on the success of his or her performance-related activity, does the employee have?

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a primary function of a central bank is to group of answer choices control the bond market. publish statistics on banking and related financial matters. regulate dividend payments by corporations. set monetary policy.

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The primary function of a central bank is to set monetary policy.

Elaborate on monetary policy.

To exercise control on the entire amount of money in circulation, put into action policies like raising interest rates and changing bank reserve requirements, promote economic growth, a nation's central bank implements various tools all together know as the monetary policy.

Under a twin mandate to increase employment while managing inflation, the Federal Reserve Bank of the U.S. carries out monetary policy

Monetary policy is the process of regulating both the total amount of money in an economy and the channels by which it is distributed.

Economic variables such as the GDP, inflation rate, and sector- and industry-specific growth rates have an impact on monetary policy strategy.

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a 11-year, semiannual coupon bond sells for $938.52. the bond has a par value of $1,000 and a yield to maturity of 6.45 percent. what is the bond's coupon rate?

Answers

The coupon rate is calculated by multiplying the bond's face value, sometimes referred to as its "par value," by the sum of all annual bond payments. The bond's coupon rate 6.08%

How is the coupon rate calculated?

The coupon rate is calculated by multiplying the bond's face value, sometimes referred to as its "par value," by the sum of all annual bond payments.

The coupon rate is the annual return an investor could expect while holding a certain bond. It exists determined at the time the bond is issued and is computed by dividing the sum of the annual coupon payments by the par value.

N = 22

I/Y = 6.51/2 = 3.255

PV = $952.52

FV = $1,000

PMT = $30.40

Coupon rate = ($30.40 × 2)/ $1,000 = .0608, or 6.08%

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the equilibrium price in this market is $2.50 and the equilibrium quantity is 25 units. if the government imposes a tax of $3 in this market, only 10 units will be sold, and the government will receive total tax revenue of: a $20.00 b $75.00 c $60.00 d $100 e $30.00

Answers

Tax revenue is the money that the government receives from taxation.

The federal government will get The total tax take is $75.00.

What is tax revenue?

Tax revenue is the money that the government receives from taxation. The majority of the government's funding comes from taxes. Sources of income include people, public enterprises, trade, royalties from the sale of natural resources, and/or foreign aid.

Income and profit taxes, Social Security "contributions," taxes on goods and services, commonly referred to as "consumption taxes," payroll taxes, levies on the ownership and transfer of property, and other taxes are all included in the definition of "tax revenue."

A tax revenue is something that all households, businesses, and other institutional entities are required to pay to the government. Direct and indirect taxes generate several types of tax revenue.

The federal government will get The total tax take is $75.00.

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on april 1, snell company made a $50,000 sale giving the customer terms of 3/10, n/30. the receivable was collected from the customer on april 8. how does the collection of cash from the customer affect the company's financial statements? balance sheet income statement statement of cash flows assets

Answers

$48,500 in sales on a net basis is the collection of cash from the customer affect the company's financial statements

We all know that 3/10, n/30 indicates that the consumer will receive a 3% discount if the payment is made within 10 days, but the payment must be made within 30 days.

Snell Company offered a 3% discount to customers as a result of selling the products on April 1 and receiving payment on April 8. The financial accounts will be as follows because there is a discount:

income declaration

Sales = $50,000

Less: Discount for sales (1,500)

$50,000 × 3%

$48,500 in sales on a net basis

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has preferred stock that pays a dividend of $1.25every year. if the discount rate on investments like this is 6.2%, what is the value of the preferred stock?

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A unique class of stock known as preferred stock does not grant voting rights but pays dividends according to a predetermined timetable. Preferred stock incorporates regular income and ownership in the company into one investment that has features of both common stock and bonds.

How is the preferred stock market value determined?Here is a simple equation to determine the value of preferred stock: Cost of Preferred Stock = Dividend on Preferred Stock (D) / Price of Preferred Stock (P). The amount used to determine the dividend is equal to the par value of one preferred stock share. In other terms, par value refers to a portion of stock's face value.Divide the dividend percentage by the par value of the preferred stock. For instance, if the stock was issued at $40 per share and the dividend rate is 7.5 percent, the yearly dividend is $3 per share.The amount used to determine the related dividend for each share of preferred stock is its par value. Because of this, the issuing corporation must pay $50 per year for as long as the preferred stock is outstanding if the par value of the shares is $1,000 and the dividend is 5%.

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The goal of the accounts receivable methods is to adjust the allowance for doubtful accounts balance so that.

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The goal of the account receivable methods is to adjust the allowance for doubtful accounts balance so that the estimate of the uncollectible accounts receivable is the same as the unadjusted balance.

Utilize A/R Aging Reports to Calculate ART. Provide flexible payment options to your clients. Right away, execute a contract or draft a purchase order. When reminding customers to make payments, be prompt. Automation by A/R. It is all a component of account receivable methods. The general ledger account balances at the conclusion of a reporting period are listed in the unadjusted balance, which is done before any adjusting entries are made to the balances to produce financial statements. Analysis of account balances and the creation of adjusting entries both begin with the unadjusted balance.

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What term is used to describe the practice of unloading materials from an incoming trucks or rail cars and loading these materials onto outbound trucks or rail cars, with little or no storage or warehousing in between?.

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Consolidation is the logistics process of removing cargo off an incoming truck or railway and loading it immediately onto an outgoing truck or railcar with little or no storage in between.

What does supply chain cross docking entail?Cross-docking is the process of putting products straight onto outbound vehicles after they have been delivered to inbound vehicles.A person or business that transports freight for a single or a small group of shippers under contract. not required to assist the public. A person or firm that hauls its own goods as part of a venture that makes, uses, sells, or purchases the goods being transported.Cross docking is a lean concept since it saves some wasteful transit and the requirement to keep inventory. Reduced lot sizes and shipping numbers - By decreasing lot sizes and shipping quantities, a business can boost warehouse productivity and expedite shipping.

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ben is the marketing manager of a large department store that sells a variety of household appliances, including refrigerators, washing machines, and stoves. what might ben do to help customers finance these large, expensive items?

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Since Ben is the marketing manager of a large department store that sells a variety of household appliances, the thing that ben need to do to help customers finance these large, expensive items is arrange credit.

What is line of credit arrangement?

An LOC is a contract that a financial institution typically a bank has with a customer that specifies the largest loan amount the customer is permitted to take out. As long as they don't go over the maximum (or credit limit) specified in the agreement, the borrower is permitted to draw money from the LOC whenever they need it.

Therefore, Any contract relating to the granting of credit, extending credit, hire purchase agreement, loan or transaction in the nature of a loan, lease or rental agreement, invoice, account, agreement, or other evidence of debt, payments made, or withdrawals from any customer's or client's account is referred to as a credit arrangement.

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you could reduce the size of your monthly loan payments by question content area bottom part 1 a. borrowing more money initially for the same period of time. b. lengthening the maturity of the loan. c. borrowing the same amount of money but for a shorter period of time. d. agreeing to a higher interest rate.

Answers

You could reduce the size of your monthly loan payments by lengthening the maturity of loan.

What is maturity?

The phrase "maturity" or "maturity date" in finance refers to the deadline for making the final payment on a loan or other financial obligation, such as a bond or term deposit, at which point the principle (as well as any outstanding interest) must be paid.

The majority of financial instruments have a fixed maturity date, or a date by which they reach their full maturity. Such instruments include loans and debt instruments, regardless of how they are referred to, with fixed interest rates and variable interest rates, as well as other types of securities like redeemable preference shares, provided their terms of issuance indicate a maturity date. The phrase has a similar connotation to "redemption date."

Some financial instruments are referred to as "perpetual stocks" since they have no set maturity date and last forever.

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kayden invests $4100 in two different accounts. the first account paid 3 %, the second account paid 2 % in interest. at the end of the first year he had earned $107 in interest. how much was in each account?

Answers

The first account paid of amount $2500 is paid at 3% and the second account paid of amount $1600 is paid at 2%.

Let $x in first account and $y in second account

⇒ x + y = 4100 → eq1

and Interest earned = $107

∴ ( 3% of x ) + ( 2% of y ) = 107

⇒ 0.03 x + 0.02 y = 107 → 2

Multiply eq1 by 0.03 and subtract it from eq2, we get  

( 0.03 x + 0.02 y ) - 0.03 ( x + y ) = 107 - 0.03 × 4100

⇒ 0.02 y - 0.03 y = 107 - 123

⇒ - 0.01 y = - 16

⇒ y = -16/-0.01

⇒ y = 1600

∴ x + 1600 = 4100 ⇒ 2500

Thus, $2500 at 3%

         $1600 at 2%

Interest is the cost of borrowing money and is typically stated as a percentage, such an annual percentage rate (APR).Lenders may charge interest for the use of their money, or borrowers may charge interest for the use of those funds.Simple interest (based on the principle amount) or compound interest are two common definitions of interest (based on principal and previously-earned interest).Interest is frequently linked to credit cards, mortgages, auto loans, personal loans, savings accounts, or fines.The macroeconomic policies set by the Federal Reserve's Federal funds rate heavily influence interest rates.

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a company has declared a dividend of $6.75 per share on its stock. capital gains are not taxed. suppose the irs has issued a new regulation that requires taxes of 25 percent be withheld at the time the dividend is paid. the stock currently sells for $106.15 per share. what will the ex-dividend price be?

Answers

The ex-dividend price of the share will be $101.09

A dividend is a gift that a business delivers to its shareholders, whether it be cash or something else. Dividends may be distributed in a number of ways, including stock dividends, cash payments, and other forms. The board of directors of a corporation determines its dividend, and shareholders must approve it.

Dividend per share = $6.75

Tax percentage = 25%

The selling price of the stock = $106.15

After-tax dividend amount:

= 6.75(1 - 0.25) = 5.06

The stock price will drop by the aftertax dividend amount:

Ex-dividend price = Selling price - After tax dividend amount

= 106.15 - 5.06

= 101.09

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raul is considering going to college for another year. he is creating a chart of the costs and benefits of this decision. he knows that tuition will cost $10,000, but he has a scholarship for $8,500. should he decide to attend the college? how much should he put for tuition in the cost column of his chart?

Answers

Yes, Raul should attend college and must put in $1500 in tuition

Raul should think about enrolling in the college given the financial situation indicated in the question, mainly because he has a scholarship that allows him to do so at a significantly lower cost. This scholarship is crucial since it lowers costs. Raul has the chance to enjoy all the advantages of attending college without having to pay a hefty price thanks to the dramatic decrease in cost.

Financial possibilities are frequently uncommon and ought to be seized whenever they arise. Therefore, we can affirm that Raul ought to choose to enrol in college to take a financial chance and reap the same anticipated benefits for a tiny fraction of the initial service cost.

The total cost to be put in for tuition will be -

Tuition Amount - Scholarship Amount

= 10,000 - 8500

= 1500

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________ flows are the physical products, raw materials, supplies, and so forth that flow along the chain.

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Materials flows are the physical products, raw materials, supplies, and so forth that flow along the chain.

Transporting raw materials, prefabricated items, parts, components, integrated things, and finished goods as a flow of entities is referred to as material flow. The word primarily refers to supply chain management advanced modeling.

The material flow is a series of operations that starts with the extraction of raw materials, continues through their processing, reprocessing, and machining, and ends with the delivery of the finished product to the final customer.

Since materials are used to make products, the material flow is the most crucial element of a production organization. The factory can only break even if the goods are sold. Therefore, it is essential to move the material as rapidly and directly as possible through the necessary steps of the value chain.

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what were the goals of taylor's scientific management? benefit the worker benefit the firm increase focus on human factors increase worker productivity

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The goals of Taylor's scientific management were to increase worker productivity.

What is Taylor's Scientific Management?

It was an approach developed in the 19th and 20th century on the application of a methodology based on scientific, to guarantee greater structuring and organization to the administration, through standardization, rationalization of work and operational efficiency.

The focus of the administrative current proposed by Taylor was to increase the productivity of employees and profitability of organizations through the maximum and structured use of organizational resources.

Therefore, scientific management focused on the company and not on the employees, the focus was on the development of work through effective methods to reduce time, waste and costs through a focus on increasing productivity.

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the book basis of depreciable assets for erwin co. is $900,000, and the tax basis is $700,000 at the end of 2026. the enacted tax rate is 17% for all periods. determine the amount of deferred taxes to be reported on the balance sheet at the end of 2026.

Answers

Deferred tax to be reported on the balance sheet at the end of 2026, will be $34,000, considering tax rate of 17%.

Given Information:

Book basis of assets = $900,000

Tax basis of assets = $700,000

Tax rate = 17%

Determination of deferred taxes,

Deferred taxes = (Book basis of asset - Tax basis of asset) * tax rate

                          = ($900,000 - $700,000)*17%

                          = $200,000*17%

                          = $34,000

Taxes that are due but won't be paid until a later time are recorded as a deferred tax liability on a company's balance sheet. Needed to a gap in time between when the tax was accrued and when it is due to be paid, the responsibility is delayed.

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raul needed an expensive piece of equipment to expand his business. he borrowed the money from the bank and pledged the equipment as . if raul does not repay the loan, the bank can take his equipment. a. long-term debt b. a depreciable asset c. collateral d. a promissory note

Answers

Raúl needed an expensive piece of equipment to expand his business. he borrowed the money from the bank and pledged the equipment as c. collateral. if Raúl does not repay the loan, the bank can take his equipment.

Collateral is any asset or property that a bank accepts as security for extending credit. In order to reassure the lender that they would be able to repay the loan, the borrower gives collateral. The bank or lender may confiscate the asset pledged as collateral if the borrower is unable to repay the debt. To recoup some or all of his losses, the lender will sell it.

The pricey machinery in Raul's case serves as collateral. If he doesn't repay the loan, the bank will sell the machinery to recoup its funds. Financial assets, such as savings accounts or investment portfolio accounts, can be used as collateral instead of tangible assets.

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an adviser is creating a financial plan for retirement using a capital needs approach. which type of insurance policy would be recommended as part of the plan?

Answers

A variable life insurance policy might be suggested to a financial planner developing a retirement financial plan using a capital needs method.

What Is Variable Life Insurance?

Variable life insurance refers to a permanent life insurance policy with an investment component. A cash-value account for the policy is invested in a selection of subaccounts that are offered by the policy. Similar to a mutual fund, a sub-account operates exclusively within a variable life insurance policy. A typical variable life policy will offer a number of sub-account possibilities, with some providing up to 50.

As the underlying investments in the policy's sub-accounts increase, there is a chance that the cash value account will increase as well. At the same time, the cash value may decrease if the underlying investments decline.

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the preferred stock is cumulative and nonparticipating. no dividends were paid in year 1 or year 2. in year 3, linx declared a dividend of $90,000. the common stockholders will receive a dividend of

Answers

Dividends Payable—Preferred  15,000. Dividends Payable—Common 75,000. Dividends declared payable to shareholders by a company's board of directors are known as dividends payable.

What dividends payable ?

Dividends declared payable to shareholders by a company's board of directors are known as dividends payable. The cash amount of the dividend is recorded as a current liability in a dividends payable account until the corporation actually pays the shareholders.

Dividends payable is an unusual kind of responsibility because it involves the company's commitment to pay its own shareholders, whereas other sorts of liabilities typically involve obligations to totally different third parties, such suppliers or lenders.

Dividends payable, however, should be regarded as a legitimate debt because they result in the departure of funds from the corporation and a legal responsibility to pay.

Since it suggests that the business has had such a successful year that it can afford to pay a sizable distribution to its shareholders, a substantial dividend liabilities can be interpreted as an indicator of firm profitability.

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when a parent acquires a controlling, but less-than-100% interest in a subsidiary, the basic elements for establishing an acquisition-date subsidiary value include multiple select question. the fair value of the noncontrolling interest. the fair value of the controlling interest. the subsidiary's carrying value of the noncontrolling interest. only the consideration transferred by the parent.

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the fair value of the noncontrolling interest. the fair value of the controlling interest.

In finance and economics, a hobby is a charge from a borrower or deposit-taking financial group to a lender or depositor of an amount above compensation of the essential sum (this is, the quantity borrowed), at a particular charge. It is wonderful from a price that the borrower may additionally pay the lender or a few third birthday parties. It is also distinct from dividend which is paid by means of an organization to its shareholders (proprietors) from its income or reserve, but not at a specific charge decided beforehand, rather on a seasoned-rata foundation as a percentage within the praise won via risk-taking marketers when the sales earned exceeds the whole costs. For example, a consumer could commonly pay interest to borrow from a bank, so that they pay the bank a quantity that is greater than the amount they borrowed; or a client may earn interest on their financial savings, and so they may withdraw greater than they firstly deposited.

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a company acquires equipment for $50,000 and expects to use the equipment for 5 years. salvage value at the end is expected to be $10,000. the amount of annual depreciation by the straight-line method is $

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The amount of annual depreciation by the straight-line method is $8000.

What is annual depreciation?

Annual depreciation is described as the rate at which an asset or equipment loses its value after it is purchased and used. It is important to mention that the fixed asset loses its value and the depreciation takes annually. It can also be highlighted that any asset can lose its value especially when it undergoes wear and tear, and due to its usage, it loses its original value.

Given that,

Cost of the equipment = $50,000

Salvage value = $10,000

Useful life = 5 years

As per the formula of annual depreciation by the straight-line method,

Annual depreciation = (cost of the equipment - salvage value)/life = (50,000 -10,000)/5 = 40,000/5 = $8000

It can be concluded that the amount of annual depreciation by the straight-line method is $8000.

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coldpoint is a home appliance manufacturer. the company purchases a certain component for their products. southern electronics and electrotech are two companies that make the component, and their products and services are equal, so the component will be bought based solely on cost. both companies offer a discount policy based on order quantity. however, these two companies post different price schedules. for southern electronics, if the order quantity is less than 500 units, the price is $0.60 per unit; if the quantity is 500 or more but less than 1000, the unit price is $0.58; any quantity 1000 units or over has a unit price of $0.56. electrotech offers the same quantity range and prices. however, the discount rare applies only to the excess amount ordered. that is, if the order quantity is 500 units, the first 499 units cost $0.60 and the 500th unit cost $0.58. if 1000 units are ordered, the first 499 units cost $0.60 and the next 500 [500, 999] cost $0.58. any unit beyond the 1000th costs $0.56. the company estimates the cost of placing an order to be $20, and the uniform annual demand for this subcomponent is 800 units. inventory carrying cost is estimated to be 20 percent annually. a) plot the cost curve for southern electronics b) compute the minimum cost order quantity for southern electronics. c) plot the cost curve for electro tech d) compute the minimum cost order quantity for electro tech

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The average cost per unit is greater than in the case of incremental discounts and equivalent to the all-units discount. discounts for all units. As before, our goal is to identify Q so that the average annual total cost is minimized.

Total cost is an economic metric that includes both the initial cash outlay and the opportunity cost of the decision-makers' options when calculating the costs incurred to produce a good, buy an investment, or acquire a piece of equipment. Depending on the subject matter, this phrase has a slightly different connotation.

It measures all fixed, variable, and overhead costs related to manufacturing a good, for instance, when defining production costs. Business owners and executives need to understand this key idea.

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