Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor

Answer:

a. Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year.

This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to _decrease and the level of investment spending to increase_.

b. An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.

The repeal of the previously existing tax credit causes the interest rate to ___increase____ and the level of investment to ___decrease_____.

c. Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.

This change in spending causes the government to run a budget ___surplus_______ which ___increases_____ national saving. This causes the interest rate to ___decrease_____ and the level of investment spending to __increase_____

Explanation:

Interest rate decreases with increased savings  and this results to increased investment as funds are available at affordable costs.  The situation is reversed when the savings are decreased, since the interest rate will increase as there are less savings for investment purposes.

There is a continuous interaction between taxation, savings, government spending, inflation, and investment versus interest rates.  This means that interest rates also reflect these factors put together.  This why in both fiscal and monetary policies, governments try to strike some balance in order to direct the economy towards desired targets.  For example, when the government wants to stimulate the economy, it works to reduce interest rates in order to encourage investments, but this also lowers the propensity to save and encourages the propensity to spend, which trigger inflation and increases interest rate as an aftermath.  And this seems to be an endless vicious or virtuous circle, depending on what is achieved by the monetary and fiscal measures in operation.

Answer:

$300,000

Explanation:

Based on the information given we were told that the land was valued at the amount of $300,000 which is the fair market value price as at when Tobis father died this means that the amount of $300,000 will be Tobin's basis in the land eventhough his father bought the land at the amount of $19,000 in the year 1970 but since we were told that the Federal estate tax return was been filed and the land was valued at the amount of $300,000 this means that $300,000 will be Tobis basis in the land.

Answer it i Crtl+F

Explanation:

Answer:

is

3. Ctrl + F

Answer:

3.8 years

$2,189,324.56

20.33%

Explanation:

Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = amount invested / cash flows = $7,125,000 / $1,875,000 = 3.8 years

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

Net present value can be calculated using a financial calculator

cash flow in year 0 = $-7,125,000.

cash flow each year from year 1 to 8 = $1,875,000

I = 12%

NPV = $2,189,324.56

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calculator

cash flow in year 0 = $-7,125,000.

cash flow each year from year 1 to 8 = $1,875,000

I = 12%

IRR = 20.33%

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Answer:

It will take approximately 25.70 months for the the account to be paid off.

Explanation:

Assuming the customer pays at the end of every month, the relevant formula to use is therefore the formula for calculating the present value of an ordinary annuity as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value or current balance = $11,000

P = Monthly repayment = $500

r = interest rate = 1.2%, or 0.012

n = number of months = ?

Substitute the values into equation (1) and solve for n, we have:

11,000 = 500 * [{1 - [1 / (1 + 0.012)]^n} / 0.012]

11,000 / 500 = {1 - [1 / (1 + 0.012)]^n} / 0.012

22 * 0.012 = 1 - 0.988142292490119^n

0.264 =  1 - 0.988142292490119^n

0.988142292490119^n = 1 - 0.264

0.988142292490119^n = 0.736

Loglinearizing both sides, we have:

n * log (0.988142292490119) = log (0.736)

n = log (0.736) / log (0.988142292490119)

n = -0.133122185662501 / -0.00518051250378013

n = 25.70

Therefore, it will take approximately 25.70 months for the the account to be paid off.

Answer:

False.

Explanation:

Construction costs can be defined as the overall costs associated with the development of a built asset, project or property. The construction costs is classified into two (2) main categories and these are;

1. Operational costs: these include the costs on daily basis during the construction process such as rent, wages, sales, utility bills, maintenance and repair fees etc.

2. Capital costs: these include the costs incurred in the acquisition of the property such as commissions, insurance, property acquisition, materials, inflation, fittings, equipment, labor etc.

Hence, when a company constructs a building, the cost of the building includes materials and labor as well as the design fees, building permits, or insurance during construction.

Answer:

December 31,

DR Bad Debt Expense $25,622‬

CR Allowance for Doubtful Accounts $25,622‬

Explanation:

The Allowance for Doubtful Accounts helps provide a sort of cushion for the business by accounting for potential bad debts for the business so that if bad debts occur, they are taken from this account and not the Receivables account.

Coronado estimates that 9% of receivables will be uncollectible so;

= 9% * 329,800

= $29,682‬

However, $4,060 is already in the account so the new balance that should be brought into the account to ensure that it totals $29,682‬ is;

= 29,682‬ - 4,060

= $25,622‬

Answer:

The budgeted cost of goods sold for October is $9,600.

Explanation:

Prepare a Budgeted Costs of Goods Sold for October as follows :

Budget Purchases                         $10,150

Add Budgeted Closing Stock       $3,800

Needed                                         $13,950

Less Budgeted Opening Stock   ($4,350)

Budgeted Cost of Goods Sold     $9,600

Conclusion :

The budgeted cost of goods sold for October is $9,600.

Explanation:

Manage an organization is a complex task, which must be performed by a leader with well-developed skills. Currently, in the globalized era, where there is an intense flow of information and an extremely competitive market, there are leadership characteristics that cannot be overlooked.

In centralized organizations, there is less flexibility in the organizational structure, and power is concentrated in the hands of the highest hierarchical level of the organization, it is what can be called distance of power, which is a type of autocratic leadership where there is no greater participation decision-making.

However, this characteristic is less and less recurrent in a market marked by cultural and technological interactions.

Business management by an autocratic leader is being replaced by assertiveness, which is the characteristic of a democratic leader, whose focus is on the inclusion of people, assistance and leadership aimed at creating an organizational culture based on ethical concepts, respect and reliability .

Therefore, in the current scenario, where companies have a highly valued social responsibility, leadership must be focused on the inclusion and appreciation of employees, creating a sense of unity and appreciation so that there is a positive work environment and increase their position in the market

Answer:

True.

Explanation:

Messaging systems range from semi-public systems such as standard text messaging on mobile phones, to private systems that are closed to anyone outside of invited members.

A messaging system can be defined as an electronic device which enables users to send text messages to one or more users depending on the configuration and it ranges from semi-public systems to private systems.

In a semi-public messaging system, messages can be sent between users with little or no restriction to who can send or receive these messages. An example is sending short standard text on mobile phones.

On the other hand, a private messaging system is a type of system that denies access to individuals outside of the group, only invited members are able to send and receive messages.

Answer:

A. 23,600

B. 14,160

Explanation:

land adjusted basis = $118,000

land worth =  $141,600

fair market value of land = $112,100

Requirement A

Amount realized = Fair value + cash received

Amount realized = 112,100 + 29,500

Amount realized = 141,600

Less: adjusted basis = 118,000

Realized gain = 23,600

Note: Recognized gain is lower of cash received and realized gain

In this case, realized gain is lower so,

Logan's Recognized gain = 23,600

Requirement B

Amount realized = Fair value + cash received

Amount realized = 127,440 + 14,160

Amount realized = 141,600

less adjusted basis = 118,000

Realized gain = 23,600

Note: Recognized gain is lower of cash received and realized gain

In this case, cash received is lower So,

Logan's Recognized gain = 14,160

Answer:

Issuance - January 1, 2017

Cash $16,000 (debit)

Note Payable $16,000 (credit)

December 31, 2017

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

December 31, 2018

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

December 31, 2019

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

December 31, 2020

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

Explanation:

The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.

The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).

Using a Financial calculator, this can be determined as ;

Pv = $16,000

r = 5%

n = 4

Fv = $0

p/yr = 1

Pmt = ?

Thus PMT is $4,512.19.

Amortisation Schedule (Extracted from Financial Calculator)

2017

Principle Payment = $3,712.19

Interest Payment = $800

Balance =  $12,287.81

Accounting Entries :

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

2018

Principle Payment = $3,897.80

Interest Payment = $614.39

Balance =  $8,390

Accounting Entries :

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

2019

Principle Payment = $4,092.69

Interest Payment = $419.50

Balance =  $4,297.32

Accounting Entries :

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

2020

Principle Payment = $4,297.32

Interest Payment = $214.87

Balance =  $0

Accounting Entries :

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

Answer:

C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt

Explanation:

A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following;

1. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.

2. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.

3. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt

On the other hand, it allows issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.

An additional bonds test ultimately implies that the issuer is prohibited or restricted from the issuance of new bonds against the revenues of any other firm having same parity lien against pledged revenues, except it has sufficient funds (revenues) to do so.

Generally, in bond transactions, prohibition are made for selling debt having a senior claim when compared to that of the old (existing) bondholders such as creditors or investors.

Answer:

YTM = 7.77%

YTC = 7.62%

Explanation:

YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = {90 + [(1,000 - 1,130.35)/18]} / [(1,000 + 1,130.35)/2]

YTM = 82.758333 / 1,065.175 = 0.07769 = 7.77%

YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]

YTC = {90 + [(1,060 - 1,130.35)/8]} / [(1,000 + 1,130.35)/2]

YTC = 81.20625 / 1,065.175 = 0.07623 = 7.62%

Answer:

By asking self reflective questions like–

Would I like to work for someone else, or be my own boss?

Explanation:

By so doing, it allows you to know your strengths and can you make right job choices peculiar to you.

For example, a recent college graduate student John who is very skilled at art may examine himself to know if he prefers to open his own art collection or instead would want to work for an art collection company.

Answer:

1. A

2. A

3. C

4. D and E.

Explanation:

1. Well-planned visual aids can increased audience interest and make the presenter appear more professional.

2. An advantage of using multimedia slides is that they enhance recall because the audience keeps the reference material.

3. Multimedia slides is a visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options.

4. Multimedia slides and handouts is a visual aid option that allows access to compatible A/V equipment, and each of the listeners can have a copy of the key tips in the presentation.

Generally, in order to have good communication and for the sake of impacting knowledge, speakers should help their audience understand, remember, and act upon ideas. Also, to improve comprehension and enhance retention, speakers are advised to use visual aids such as a multimedia slide, handouts etc. A multimedia slide can be designed or created through the use of a computer software such as Microsoft PowerPoint.

Additionally, the handouts should be shared to the audience at the end of the presentation.

Answer:

everything besides B

Explanation:

Answer: False

Explanation:

Operating Leverage is used to measure how much a change in sales translates to a change in income. In general, a higher operating leverage means that a small change in sales leads to a higher change in income. This is quite risky because it shows that even a small error when forecasting sales can lead to a larger error in the cash flow that will be expected from the sales. This makes forecasting harder and increases business risk.

Answer:

sdssds

Explanation:

ssss

Answer:

greater experience increases efficiency.

Explanation:

In Business management, Learning by doing suggests that greater experience increases efficiency.

Learning by doing can be defined as the process which involves different individuals making use or an application of their experiences, especially the experiences they acquired by actively engaging in the production, tasks or projects.

Additionally, when significant externalities are actively associated with learning by doing, the level or quantity and quality of production will become sufficiently great and result in an increased returns to scale as more sales and profit would be made by the organization.

It is a good concept and strategy which helps organizations to break even and to meet their goals, aim and objectives.

International franchising is a business model that expands the franchising concept into the international marketplace. For example, you can use the rental car concept as a prime example. You can expand the concept of renting a car from a domestic market to an international market.

Answer:

Dec. 31

Debit Warranty Expense 14,800

Credit Warranty Payable 14,800

Explanation:

Calculation to Determine the estimated warranty expense for the year

Based on the information given we were told that Florida Keys sales has the amount of $1,450,000 with 3% sales warranty obligation, and Florida keys as well had debit Warranty Expense of the amount of $28,700 this means that the Estimated warranty expense will be calculated as;

$1,450,000 * 3% =$43,500

$43,500-$28,700=$14,800

Therefore the Journal entry will be:

Dec. 31

Debit Warranty Expense 14,800

Credit Warranty Payable 14,800

Answer: 39.29%

Explanation:

For us to calculate the percentage change, we have to deduct the trading for VEF in January from the trading for VEF in February and then divide by VEF trading in January. This will be:

= (1950 - 1400)/1950

= 550/1400

= 0.3929

= 39.29%

The percentage change in January is 39.29%.

Answer:

B. Debit treasury stock for $16 million and Credit cash for $16 million

Explanation:

The journal entry below shows how Anthem records the repurchase

Treasury stock account Dr. $16 million

(200,000 shares × $80 per share)

To Cash account Cr. $16 million

Treasury stock is debited so as to decrease total shareholder's equity while cash is credited in order to record the expenditure of the company.

Explanation:

In this case, the best thing to do is to try to see the challenge of dealing with the lack of critical decision making by the project sponsor, as an opportunity to make the project progress smoothly and reach its best potential.

For this, the ideal is to respect the costs and the deadlines, without exceeding the budgets and the time necessary to carry out the tasks.

The good relationship between the team is also essential for there to be the necessary fluidity for the project to take place organically and as planned. It is also necessary to be attentive to the project's indicators, since monitoring and control are essential to observe the progress of the achievement of goals and the overall performance of the project's progress.

Answer:

D

Explanation:

I took the test

Answer:

$30,000

Explanation:

The computation of the depreciation expense for the second year using the straight line method is shown below:

As we know that

= (Original cost - residual value) ÷ (useful life)

= ($90,000) ÷ (3 years)  

= $30,000

In this method, the depreciation is the same for all the remaining useful life

Hence, the second year depreciation expense is $30,000

Answer:

Orion Flour Mills

Debit Milling Machine $64,200

Credit Accounts Payable $64,200

To record the purchase of a new machine on account, terms n/30.

Debit Freight-in $840

Debit Insurance $540

Debit Machine Installation $1,680

Credit Cash Account $3,060

To record additional expenditure on the purchase.

Debit Milling Machine $2,520

Credit Freight-in $840

Credit Machine Installation $1,680

To record the cost of additional expenditure to the Milling Machine.

Explanation:

Using the journal to account for the acquisition of a new machine by Orion Flour Mills initially records the transactions after identifying the accounts involved, and the accounts to be debited and credited respectively.

The cost of the new machine includes the additional expenditure incurred for bringing it into use.  The expenditure will include the shipment, sales tax, and installation costs.  Insurance will be excluded as it is not incurred in order to bring the machine into use.

Answer:

c. 70% / 81% / 90%

Explanation:

Loan to Value ratio LTV is the ratio of borrowers principal loan balance to the appraisal value of the property. Combined Loan to Value Ratio CLTV is the ratio which considers the sum of all the loan taken on the property. High loan to Value ratio is the one which loan is exceeding by the value of borrowers home.

Answer:

a. If she begins saving today; How much money will she have when she is 65?

Assuming that the student started saving the day of her birthday, she will have $1,825 at the end of each year. So we must find the future value of an ordinary annuity with 45 payments worth $1,825 and 9% interest rate:

FV = $1,825 x 525.85873 (FV annuity factor, 9%, 45 periods) = $959,692.18

b. If she did not start saving until she was 45 years old, how much would she have at 65?

FV = $1,825 x 51.16012 (FV annuity factor, 9%, 20 periods) = $93,367.22

c. How much must the 45-year-old deposit monthly to catch the 20-year old?

$959,692.18 = annuity payment x 51.16012

annuity payment = $959,692.18 / 51.16012 = $18,758.60

Answer: $2,910

Explanation:

Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.

The amount they lent to Fredrica therefore is;

= 3,000 (1 - 3%)

= 3,000 * 97%

= $2,910