answer the following questions about the multiplier. a. how much will gdp change after a $545 billion increase in government purchases, if the multiplier is 1.5? $ billion b. how much will gdp change after a $400 billion decrease in government purchases, if the multiplier is 1.25? $ billion c. if a $300 billion increase in government purchases leads to a $450 billion increase in gdp, what is the value of the multiplier? multiplier

Answers

Answer 1

The total monetary or market value of all the finished goods & services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

What is Multiplier ?

Gains in total output are greater than the shift in spending that created them in terms of the gross domestic product (GDP), thanks to the multiplier effect. The relationship among government spending and gross domestic product is commonly referred to as a multiplier.

Although it is commonly calculated on an annual basis, GDP can also be calculated on a quarterly basis. As an illustration, the American government creates annualized Provided the necessary for the entire calendar year but each financial quarterly.

The monetary worth of all completed goods and services produced in a nation over a certain time period is known as the gross domestic product (GDP). The estimated GDP of a nation can be used to determine the size & growth rate of an economy. Spending, output, and income can all be used to compute GDP, which can then be adjusted for population and inflation to give more detailed results.

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Related Questions

At the end of the year 2 accounting period, deyoung company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,400. Defazio uses the perpetual inventory method. Assuming the amount is material, how will the entry necessary to reduce the inventory to the lower of cost or market affect the elements of the company’s financial statements?.

Answers

The entry required to reduce inventory to the lower cost or market affects the financial statements of the company by decreasing total assets, gross margin, and net income of the company.

This can be explained using the concept of Perpetual Inventory. Perpetual inventory system may be defined as the method of estimating and calculating the inventory of the country on a regular basis. This estimation is done by keeping a tract of all the electronic records rather than checking the physical records. The value of any good within the market can change with time and this value needs to be tracked because the goods kept in the inventory for longer time can show a change in value. If the value increases then it results in the profit of company but if the value decreases then it may lead to loss of the company. The method of perpetual inventory keeps record of all these variations in prices of goods.

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healthcare organizations often promote from within. although this is a good practice because it recognizes individuals who are good performers, individuals sometimes may be promoted to managerial positions for which they are not prepared. group of answer choices true

Answers

Although this is a beneficial practice since it honors employees who are strong performers, individuals may be promoted to managerial roles for which they are not prepared.

Employee motivation is an inner and internal urge to exert the required effort and activity in work-related activities. It has been widely defined as the "psychological influences that govern the direction of a person's conduct in an organization, as well as a person's amount of effort and perseverance." Also, "Motivation can be defined as the readiness to devote energy in order to attain a goal or receive a reward. Workplace motivation is described as "the sum of the mechanisms that drive the arousal, direction, and maintenance of behaviors relevant to work contexts."" Motivated employees are critical to an organization's success since they are more productive in the workplace.

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You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.
You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one:
A. This is only true if the marginal tax rate is too high.
B. This is only true if the marginal tax rate is already very low.
OC. This isn't true. If the marginal tax rate is reduced, it always generates less total tax revenue.
D. It is always the case that reducing the marginal tax rate causes people to work more and increase the total
amount of tax revenue collected.

Answers

answer:

not a.

not b.

not c.

it's d.

explanation:

Lower tax rates enable firms to invest more – this leads to higher growth and therefore, higher tax revenues

a small plumbing and heating company needed an installer, but they had poor experiences in the past with new hires who did not know what they were doing. they decided to have each applicant go on a call with a current installer and demonstrate their abilities under supervision. this is a(n) test.

Answers

They decided to have each applicant cross on a call with a cutting-edge installer and demonstrate their talents under supervision. that is a(n) performance check.

Supervision is a Latin phrase. incredible manner 'from the above' and vision way 'to see'. In the regular sense of the term, supervision manner overseeing the sports of others. In control, supervision means “Overseeing the subordinates at work with authority and with a purpose to guide the personnel if he's doing wrong.”

There are 3 sorts of supervision: administrative, medical (also referred to as instructional supervision) and supportive supervision. The maximum primary feature of administrative supervision is to make certain that work is completed. Supervision targets to offer duty for each supervisor and supervisee exploring practice and performance. It also complements and provides extra evidence for annual overall performance management and evaluation.

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in december, both the price of christmas trees increases and the quantity of christmas trees sold increases. is this a violation of the law of demand? explain why or why not.

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In December, both the price of Christmas trees increases and the quantity of Christmas trees sold increases. This is a violation of the law of demand.

What is Law of Demand?

One of the most fundamental concepts in economics is the law of demand. It explains how market economies distribute resources and set the prices of goods and services that we see in daily transactions by combining the law of supply.

According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens.

Economics is the study of how people make use of scarce resources to satisfy endless demands. These limitless wants are the focus of the law of demand.

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a new trend in the secondary market occurred when wall street developed a market for collateralized mortgage obligations (cmo). these cmos generally consisted of

Answers

As a result of Wall Street creating a market for collateralized mortgage obligations, the secondary market underwent a new trend (CMO). This CMOS typically included loans with short-term interest rates attached.

What is a collateralized mortgage obligation?

A collateralized mortgage obligation (CMO) is a fixed-income security made up of a group of mortgage loans that are comparable in a number of respects, such as loan size or credit score, and are bundled together and offered to investors as a single investment known as a security.

Securities for CMOs are sold off-exchange, not on the stock exchange. The structure of a CMO is comparable to stock dividends: investors purchase the investment and receive payments (money from principal and interest) in accordance with a predetermined schedule following the completion of the mortgage borrowers' monthly mortgage payments.

Investors receive a return in the form of principal and interest payments, and CMOs can be a wonderful method for investors to diversify their holdings and boost cash flow.

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if 100 resumes were obtained from an employment agency and 25 of the applicants submitting those resumes were invited for an onsite interview, the yield ratio for that agency would be

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The yield ratio for the agency will be =

          no. of candidates who submitted the resume/ no.

              of candidates who were invited for interview

         = 100/25

         = 4:1

Yield ratios are metrics used in recruiting which measure what percentage of applicants moves from one stage to another in the hiring process. It refers to one of the key performance indicators (KPI) in human resources that shows what percentage of candidates from a specific source were invited for an interview.

They are used to measure the success of various recruiting methods and strategies.

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How do you avoid correcting and putting a customer on their defensive side?

Answers

Answer:

Explanation:

Listen carefully to what the customer has to say, and let them finish. Don't get defensive. The customer is not attacking you personally; he or she has a problem and is upset. Repeat back what you are hearing to show that you have listened.

Ask questions in a caring and concerned manner.

The more information you can get from the customer, the better you will understand his or her perspective. I’ve learned it’s easier to ask questions than to jump to conclusions.

Put yourself in their shoes.

As a business owner, your goal is to solve the problem, not argue. The customer needs to feel like you’re on his or her side and that you empathize with the situation.

Apologize without blaming.

When a customer senses that you are sincerely sorry, it usually diffuses the situation. Don't blame another person or department. Just say, "I'm sorry about that.”

Ask the customer, "What would be an acceptable solution to you?"

Whether or not the customer knows what a good solution would be, I’ve found it’s best to propose one or more solutions to alleviate his or her pain. Become a partner with the customer in solving the problem.

Solve the problem or find someone who can solve it— quickly!

Research indicates that customers prefer the person they are speaking with to instantly solve their problem. When complaints are moved up the chain of command, they become more expensive to handle and only add to the customer's frustration.

There is no getting around customer complaints, regardless of your industry. However, by employing these steps and taking the time to review the issue with the customer, you can turn challenges into something constructive.

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?a. Distributing free samples of the product to create awareness about the product among the consumersb. Convincing consumers that the quality of their lower-priced product is the same as that of a comparatively higher-priced product sold by a competitorc. Convincing consumers of the prestige associated with the productd. Distributing free gifts along with the product during its introductory stage

Answers

Convincing consumers of the prestige associated with the product.

Prestige or image pricing is a branding and advertising method that uses top-class pricing to suggest superior fines.

In different phrases, an organization will set an intentionally excessive charge to draw potential clients interested by associating themselves with a luxurious emblem.

Examples of markets in which prestige pricing is used are watches, perfumes, and luxury cars.

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On january 1 providence, incorporated, issues $1,000,000 of 10 percent, 5-year bonds at par value. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answers

The journal entry entering the dollar amount in debit or credit columns is

Date      Particulars                    Debit                           Credit

01-Jan-19 Cash             $10,00,000

         Bonds Payable                                                      $10,00,000

The bond is issued for $1,000,000 and cash is received from that bond. Thus, a cash identifier is debited and a liability is created in this case. The accrued interest will be charged as interest expense at the end of the period.

Journal entry :

A journal entry is the act of keeping or recording all economic or non-economic transactions. Transactions are listed in an accounting journal that shows the company's debit and credit balances. A journal entry can include multiple records, each of which is a debit or a credit. A journal entry is used to record a business transaction in a company's accounting records. A journal entry is usually recorded in the general ledger; alternatively, it can be recorded in a sub-ledger, which is then summarized and included in the general ledger

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a reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation. group of answer choices true or false

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True A currency devaluation is a decrease in a nation's currency's value in comparison to that of other nations' currencies.

What is an example of a currency devaluation?

When a nation's government deliberately lowers the value of its currency, this is known as devaluation. Instead of allowing market forces to determine its value, a nation must bind its domestic currency to another currency before taking this action. For instance, Panama binds the balboa, the country's currency, to the US dollar.

How does currency devaluation affect things?

The deliberate downward adjustment in the official exchange rate known as devaluation lowers the value of the currency; A revaluation, on the other hand, is an increase in the value of the currency. The domestic currency's lower value in comparison to other currencies is a key effect of devaluation.

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What are the primary responsibilities
for financial and insurance records
processing professionals regarding
handling documents for easy retrieval?
A. retrieving and dating
B. collecting and filing
C. making and retrieving

Answers

The main duties of financial and insurance records processing specialists when handling documents for simple retrieval are making and retrieving. Retrieval exercise is crucial since it improves students' learning and helps to develop their schema. Option C

By allowing pupils to recall previously studied material and fortify their memory traces, it helps students' memories. Additionally, it makes it more likely that information will be retained in long-term memory. Students' schemas are strengthened by retrieval practise, which enables them to commit the knowledge to long-term memory.

Retrieval practise increases learning effectiveness; creating and using concept maps, flashcards, or any other retrieval practise tool will promote greater learning than underlining or rereading.

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tom winthrop estimated that the units in ending work in process inventory in the final processing department were 30% complete with respect to the conversion costs of the final processing department. if this estimate of the percentage completion is used, what would be the cost of goods sold for the year? (10 points)

Answers

If this estimate of the percentage completion is used, the cost of goods sold for the year WOULD BE = $ 488000 and $ 156000

Income from Operations =

Sales Revenue - Variable Expenses - Fixed Expenses

For 12000 Units = (12000 x $ 201) - (12000 X $118) - $ 840000

= $ 2412000 - $1416000 - $ 840000

= $ 156000

For 16000 Units = (16000 x $ 201) - (16000 X $118) - $ 840000

= $ 3216000 - $1888000 - $ 840000

= $ 488000

What do you mean by process inventory?

Process Inventory is a term mainly referred to the tools, materials and equipment involved into a process. It means a complete set of tangible resources which are to be possessed by an organization for successful accomplishment a business process.

It is necessary for an organization to

keep accurate trackingControl acquiringdeliverystocking up ongoing allocation of resources.

Therefore, If this estimate of the percentage completion is used, the cost of goods sold for the year WOULD BE = $ 488000 and $ 156000

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What was the name of the series of letters written to convince the states that ratifying the constitution was the right decision?.

Answers

The Federalists Papers were written and published to urge New Yorkers to ratify the proposed United States Constitution.

The Federalist, often known as the Federalist Papers, is a collection of 85 essays published between October 1787 and May 1788 by James Madison, John Jay, and Alexander Hamilton. The pieces were printed under the alias "Publius" in a number of publications in the state of New York at the time.

The Federalist Papers are still widely regarded as the most reliable source for identifying the original intent of the US Constitution's authors and are one of the most important American contributions to political philosophy and theory.

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ivy cosmetics company consists of two departments, blending and filling. the filling department received 66,200 ounces from the blending department. during the period, the filling department completed 74,000 ounces, including 12,400 ounces of work in process at the beginning of the period. the ending work in process inventory was 4,600 ounces. how many ounces were started and completed by the filling department during the period? fill in the blank 1 ounces

Answers

The number of ounces started and completed by Filling Department during the period is 53,800 ounces.

The number of ounces started and completed during the period can be computed by simply deducting the Beginning work in process from the Number of ounces completed.

Since we have the following from the question:

Number of ounces completed by Filling = 66,200 ounces

Beginning Work in process = 12,400 ounces

Therefore, we have:

Number of ounces started and completed = Number of ounces completed by Filling - Beginning work in process = 66,200 ounces - 12,400 ounces = 53,800 ounces

Therefore, the number of ounces started and completed during the period is 53,800 ounces.

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four quantitative threshold tests (revenue, profit or loss, cashflow and asset) are used to identify reportable segments. True or False

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The statement that there are four quantitative threshold tests such as revenue, profit or loss, cashflow, and assets, used to identify reportable segments is True.

How can reportable segments be identified?

To determine the success of a business, there are different thresholds tests that can be used. There are currently four of such threasholds and the first is revenue. A company can check if it hit its revenue targets for instance.

There is also profit or loss which is a very common test. Cashflow shows how much is coming in and leaving a company and is therefore a measure of success. Assets also allow for reportable segments to be identified by showing how much a company has.

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if the present value of $480 to be paid at the end of one year is $400, what is the one-year discount factor?

Answers

The one-year discount factor is 0.8333.

What is a “Discount Factor”?

In financial modeling, the phrase "discount factor" is most frequently used to calculate the present value of future cash flow values. The future cash flow is multiplied by this weighting factor in order to discount it to the present value. The rate of return that a capital expenditure project must reach in order to be accepted is known as a company's discount factor.

Discount factor is used to determine the net present value of projected future cash flows and to assess how much the investment was worth. The net future value of an investment is calculated using the discount factor, which is also used to calculate the expected profits and losses based on future payments.

Given:

Present value = $480

To be paid at the end of one year = $400

So the discount factor = 400/480

= 0.8333

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marks consulting purchased equipment costing $45,000 on january 1, year 1. the equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. straight-line depreciation is used. if the equipment is sold on january 1, year 5 for $22,500, the journal entry to record the sale will include a:

Answers

Debit to accumulated depreciation for $22,500.

As for the information provided,

Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.

Depreciation for 4 years = $5,000 * 4 = $20,000

Depreciation in 5th year for 6 months = $5,000/2 = $2,500

Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500

Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500

Sale price = $20,000

Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500

So therefore, there is loss of $2,500

Thus, option c and option d are invalid.

Further cash received on sale is debited and not credited thus, option a is also invalid.

As the total accumulated depreciation = $22,500

The correct entry will include debit to accumulated depreciation of $22,500.

Thus, option b is correct.

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a donor gave $50,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to an individual who lost his home in a fire. the not-for-profit would:

Answers

$50,000 was given to a nonprofit organization with the request that it be given to someone whose home was destroyed in a fire. The not-for-profit would note and credit the $50,000 in cash as a liability.

What exactly is liability?

An obligation is anything that a person or company owes, usually money. Over time, liabilities are settled by transferring economic rewards such as money, goods, or services. Loans, accounts payable, mortgages, delayed income, bonds, warranties, and accrued expenses are all examples of liabilities on a balance sheet.

Assets and liabilities can be contrasted. Liabilities are items you owe or borrowed money for, whereas assets are things you possess or are owed money for. A liability is something borrowed, owed, or obligated to someone else. It can be real (for example, a bill that needs to be paid) or fictitious.

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1 points time remaining 1 hour 29 minutes 46 seconds01:29:46 item 1 time remaining 1 hour 29 minutes 46 seconds01:29:46 wfo corporation has gross receipts according to the following schedule: year 1 $ 25.00 million year 2 $ 21.00 million year 3 $ 21.00 million year 4 $ 29.50 million year 5 $ 33.00 million year 6 $ 24.00 million if wfo began business as a cash-method corporation in year 1, in which year would it have first been required to use the accrual method?

Answers

If WFO began business as a cash-method corporation in year 1 then in Year 6 would it have first been required to use the accrual method.

Corporations that have $25 million or less in annual average gross receipts for tax purposes can use the cash methods of accounting. Those Corporations that have not been in existence for at least three years can compute average annual gross receipts over the years they have been in existence.

One can calculate the annual average gross receipt as the person who is paying the taxes his gross receipt can be made annually by multiplying the gross receipts of the short tax year by 12 and then it is divided by the multiple of the number of months which is present in the short tax year. Hence, the three years preceding Year 6 have annual average gross receipts of $26.05 ((25.25+26.20+26.70)/3) million.

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Imagine you operated a shipping and packaging service within new york city. You slowly expanded to include shipments and deliveries between new york, new jersey, and connecticut. After the expansion, could you be subject to regulation by either or all of the states and the federal government? which court case outlines this? explain your answer.

Answers

You would be subject to federal government regulations. The Gibbons V. Ogden case from 1824 served as the legal precedent for this. Option  A

What is Gibbons V. Ogden?

Generally, The US Supreme Court ruled in the Gibbons v. Ogden decision that the states in the nation cannot impede the federal government's ability to control trade in the nation.

In this instance, Ogden had requested the court to enjoin Gibbons from conducting commercial activity in the state waterways. He claimed to have exclusive ownership of the waterways.

In conclusion, This lawsuit served as more evidence that the federal government had greater control over the nation's states.

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CQ

Imagine you operated a shipping and packaging service within New York City. You slowly expanded to include shipments and deliveries between New York, New Jersey, and Connecticut. After the expansion, could you be subject to regulation by either or all of the states and the federal government? Which court case outlines this? Explain your answer. Gibbons v. Ogden (1824) , McCulloch v. Maryland (1819) , Marbury v. Madison (1803)

by providing training on the responsible service of alcoholic beverages to servers and bartenders a business owner can:

Answers

By providing training on the responsible service of alcoholic beverages to servers and bartenders a business owner can potentially lower liability insurance rates.

A drink that contains ethanol, a form of alcohol that works as a narcotic and is made by fermenting grains, fruits, or other sources of sugar, is referred to as an alcoholic beverage (also known as an alcoholic drink, adult beverage, or just a drink). Drinking, or the intake of alcoholic beverages, has a significant social function in many cultures.

The manufacturing, sale, and consumption of alcoholic beverages are all governed by regulations in the majority of nations. The marking of the alcohol content percentage (as ABV or proof) and the usage of a warning label may be mandated by regulations. While alcohol is generally permitted around the world, some nations outright prohibit certain behaviours. In 2018, the worldwide alcoholic beverage market reached $1 trillion.

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tapley dental supplies inc. is in a stable, no-growth situation. its $1,000,000 of debt consists of perpetuities that have a 10% coupon and sell at par. tapley's ebit is $500,000, its cost of equity is 15%, it has 100,000 shares outstanding, all earnings are paid out as dividends, and its federal-plus-state tax rate is 40%. tapley could borrow an additional $500,000 at an interest rate of 13% without having to retire the original debt, and it would use the proceeds to repurchase stock at the current price, not at the new equilibrium price. the increased risk from the additional leverage will raise the cost of equity to 17%. if tapley does recapitalize, what will be the new stock price?

Answers

The new stock price after Tapley's recapitalization will be $17.20. Hence the correct answer is $17.20.

Value of the Firm = Net Operating Profit after tax / Cost of Equity

= [ $500,000 – ($10,00,000 x10% x 0.60) ] x0.60 / 0.15

= $240,000 / 0.15

= $16,00,000

Stock Price = Value of the firm / Number of shares outstanding

= $16,00,000 / 100,000 shares

= $16 per share

Stock Price – After capitalization

Value of the Firm = Net Operating Profit after tax / Cost of Equity

= [ { $500,000 – ($10,00,000 x10%) – ( 500,000 x 13% ) } x 0.60) ] x0.60 / 0.17

= $201,000 / 0.17

= $11,82,352.94

Stock Price = Value of the firm / Number of shares outstanding

= $11,82,352.94 / [ 100,000 shares– ( 500,000 / $16) ]

= $11,82,352.94 / [ 100,000 shares – 31,250 shares ]

=  $11,82,352.94 / 68,750 shares

= $17.20 per share

Hence, the price of new stocks is $17.20 per share.

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a system of performance measures, including nonfinancial measures, used to assess company and division manager performance is: multiple choice hurdle rate. return on investment. balanced scorecard. residual income. investment turnover.

Answers

A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is called a balanced scorecard.

The balanced scorecard is a performance management report used by managers to keep track of the performance of employees. It presents the activities executed by the employees and the consequences it is having for the company.

Balanced scorecards are focused on a particular project or agenda of the company. It measures the performance of the employees concerning the objectives set. A balanced scorecard consists of the financial, internal process, customer, learning, and growth process.

It also keeps track of the measures and objectives set for performance improvement.

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which entry mode into a foreign market best serves a high-tech firm because it reduces the risk of losing that competence?

Answers

The entry mode into a foreign market best serves a high-tech firm because it reduces the risk of losing that competence wholly owned subsidiaries

What is wholly owned subsidiaries?

A corporation whose common stock is 100% held by another company is referred to as a wholly owned subsidiary.

A parent corporation may acquire a firm and turn it into a wholly owned subsidiary. A corporation whose common stock is 51% to 99% held by a parent company is referred to as a majority-owned subsidiary.

Hence, we can say that A high-tech company is best served by entering a foreign market through one of its fully owned subsidiaries since it lowers the danger of losing that expertise.

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Determine the amount of taxes owed on a taxable income of $49,652. $4,735.38 $6,600.44 $7,709.92 $10,293.44

Answers

Answer:

I believe the correct answer is $4,735.38.

Explanation:

The marginal tax rate on this amount is 12%. You would be taxed $4,253 for the 2021 tax year, and $4.7k is way closer to this figure.

Total income tax for someone living in San Diego, CA would be $9,502. this would be pretty close to the $10.2k number, so it depends what it is asking. Just Federal tax, or Federal & State? If so, what state?

Answer:

$6,600.44

Explanation:

$49,652 is within the $41,176–$89,075 tax bracket. The marginal tax rate for this bracket is 22%.

First, you have to determine your taxable income. To do this, subtract the tax brackets.

Tax Bracket       Taxable Income    Solution

$0–$10,275:             10,275           $10,275 - $0 = $10,275

$10,276–$41,175      30,900          $41,175 - $10,276 = $30,900

$41,176–$89,075         8477          $49,652 - $41,176 = $8477

Next, multiply each taxable income with it's tax rate to get your taxes owed.

10% • 10,275 = 1027.5

12% • 30,900 = 3708

22% • 8477 = 1864.94

Now, add your taxes owed together.

1027.5 + 3708 + 1864.94 = $6600.44

management accounting differs from financial accounting in that financial accounting is a. more oriented toward the future. b. primarily concerned with external financial reporting. c. primarily concerned with nonquantitative information. d. heavily involved with decision analysis and implementation of decisions.

Answers

The correct option to this answer would be B primarily concerned with external Financial Reporting

How are management and financial accounting different from one another?

Financial accounting concentrates on an organization's external financial procedures, whereas managerial accounting concentrates on the internal financial processes of an organisation. Managerial accountants concentrate on short-term growth plans for maintaining the economy. Financial accounting has a historical orientation because it is focused on the past financial successes of an organisation. Managerial accounting may deal with budgets and predictions, and as a result, may be future-focused. Financial accounting describes the past, whereas management accounting focuses on the future. External financial statements are based on historical cost basis and reflect historical events.

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the next dividend payment by im, inc., will be $1.87 per share. the dividends are anticipated to maintain a growth rate of 4.3 percent forever. if the stock currently sells for $37 per share, what is the required return?

Answers

The Required return is 9.35%.

Required return =(D1/Current price)+Growth rate

=(1.87/37)+0.043

=0.0505405405+0.043

which is equal to

=9.35%(Approx)

The required rate of return is the minimum ideal return on funding sought by way of individuals or organizations thinking about an investment opportunity.

The required rate of return (RRR) is the minimum quantity of profit (return) an investor will seek or obtain for assuming the chance of making an investment in a stock or another kind of security.

RRR is also used to calculate how profitable a project might be relative to the value of investment that undertaking.

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Which one of the following is NOT an effective approach to cost-cutting that will aid company efforts to achieve a competitive advantage based on lower overall costs per pair sold than rival companies?

Answers

Pursuing actions in each production facility that result in low labour costs per unit produced ideally the company's labour costs per pair produced in those geographic regions where it has production facilities should be at or very close to the industry-low in the benchmarks on p. 6 of the FIR.

What are labour costs?

Labour costs represent the total expenditure incurred by employers for the employment of employees. They represent the cost of the salaries labour force, which is why they are sometimes referred to as salary costs.

Labour costs in addition to gross wages, include the social contributions payable by the employer social security, unemployment, pension, provident scheme, severance pay whether compulsory, conventional or optional, but net of exemptions, in particular reductions in social security contributions.

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in the capm world, the following two stocks a and b are given: security expected rate of return beta a 0.12 1.3 b 0.14 1.8 if the expected market rate of return is 0.09 and the risk-free rate is 0.05, what is security a's alpha? round your answer to three decimal places.

Answers

Stock A is a better investment because its expected return is 2.2% higher than the CAPM's prediction.

The risk-free rate divided by beta times the market risk premium is the expected rate of return. It is given by given by the capital resource evaluating model. The expected market return less the risk-free rate is the market risk premium.

What do you mean when you say, "expect return"?

The amount of profit or loss an investor can anticipate from an investment is referred to as the expected return. After totaling these results, the probability of a given outcome being realized is multiplied by the potential return.

How is expected return calculated?

Since the investment market is extremely volatile, expected return is just one of many possible returns. It is equal to (Return A x probability A) + (Return B x probability B). Due to the fact that it takes into account the investment's previous performance, you can determine the expected return as a weighted average outcome.

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