William and Charlotte Collins divorced in November of Year 1. William moved out and Charlotte remained in their house with their 10-month-old daughter, Autumn. Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for all of Year 1. William provided 70 percent of Autumn's support, Diana provided 20 percent, and Charlotte provided 10 percent. When the time came to file their tax returns for Year 1, William, Charlotte, and Diana each wanted to claim Autumn as a dependent. Their respective adjusted gross incomes for Year 1 were $50,000, $35,000, and $52,000. Who has priority to claim Autumn as a dependent

Answers

Answer 1

Answer:

Charlotte has the priority to claim Autumn as her dependent even though William covered 70% of her living expenses during the year. In order for a parent to be able to claim a child as a dependent, he/she must live with the child for more than half the year. In this case, since William left the house, Charlotte has preference over claiming Autumn as her dependent (even though William lived with Autumn for 10 months). Also, a parent always has priority over other relatives including a grandparent.


Related Questions

On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the net method to account for sales discounts.In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022?

Answers

Answer:

The income before tax will be affected by discounts in 2021.

Explanation:

The terms 1/10, n/30 imply that payment made within 10 days will enjoy 1% discount while full payment has to be made within 30 days if the payment was not made within 10 days.

Since it is assumed in the question that all customers paid the net-of-discount amount on January 6, 2022, that means they all paid within 10 days and enjoyed 1% discount. The anticipated discount allowed is calculated as follows:

Anticipated discount allowed = 1% * ($25,000 * 10) = 1% * $250,000 = $2,500

Since the sales was made on December 28, 2021, the anticipated discount allowed will reduce the 2021 income before tax by $2,500.

This is based on the Matching Concept which states that revenues and their related expenses must be recognized in the accounting period.

Therefore, the income before tax will be affected by discounts in 2021.

Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might function in:________.

Answers

Answer:

Vacoule

Explanation:

vacuole can be regarded as membrane-bound organelle. They can be found in cell of fungi as well as plant, I could also be found in some of the bacteria and protist cell.Those that are found in animal cell do sequester waste products in the cell, and those in plant cell helps in maintaining water balance. In plant cell, just single vacoule could take up so much space.It should be noted that Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might function in vacoule.

What is one of the main economic benefits of free trade?
A. It reduces competition between businesses in different countries.
B. It encourages countries to specialize in producing particular
goods.
c. It ensures that all countries follow strict worker protection laws.
D. It allows countries to become more economically independent.

Answers

Answer: It encourages countries to specialize in producing particular goods

The correct option is D). It allows countries to become more economically independent.

What is free trade?

Free trade refers to the international trade in which countries can import and export goods without any tariff barriers or other non-tariff barriers to trade.

It open new markets, increase gross domestic product (GDP), and invite new investments which directly led to the economic development of a country.

Free trade increased exports and provide great number of choice of goods as well.

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If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Answers

Answer:

D. $4

Explanation:

Note: The full question is attached as picture below

Particulars                                             Amount

Direct Labor cost                                    $18.00

(1.5*12)

Variable Manufacturing overhead         $12.00

(1.5 * 8)

Standard variable cost excl direct       $30.00

material cost ($18 +$12)                        

Standard variable cost including         $78.00

direct material cost

Direct material cost = $78 - $30 = $48.00

Standard price per foot = $48/12 = $4

Maxim Corp. has provided the following information about one of its products:
Date Transaction Number of Units Cost per Unit
1/1 Beginning Inventory 200 $140
6/5 Purchase 400 $160
11/10 Purchase 100 $200
During the year, Maxim sold 400 units. What is cost of goods sold using the average cost method?
a. $50,000.
b. $64,000.
c. $62,000.
d. $48,000.

Answers

Answer:

d. $48,000

Explanation:

The calculation of ending inventory using average cost method is as seen below;

Total units = 200 + 400 + 100

Total units = 700

Total cost = (200 × $140) + (400 × $160) + (100 × $200)

Total cost = $28,000 + $64,000 + $20,000

Total cost = $112,000

Average cost per unit = Total cost ÷ Total unit

Average cost per unit = $112,000 ÷ 700

Average cost per unit = $160

Ending inventory = Total units - Units sold

Ending inventory = 700 - 400

Ending inventory = 300

Therefore, cost of ending inventory

= Ending inventory × Average cost per unit

= 300 × $160

= $48,000

The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October 31 $36,640 Insufficient funds check 1,400 Outstanding checks 1,800 Utility bill paid by bank 1,240 Check printing charge 80 Deposits in transit 2,440 Balance per books, October 31 40,000 Calculate the Adjusted Book Balance on October 31.A $37.280.B. $37.680.C. $36.080.D. $33,440.

Answers

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank  - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

Brickhouse is expected to pay a dividend of $3.55 and $2.62 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.7 percent. What is the stock price today if the required return is 12.1 percent?

a. $28.89
b. $25.73
c. $33.49
d. $30.98
e. $35.93

Answers

Answer: $30.98

Explanation:

Year 1 dividend = $3.55

Year 2 dividend = $2.62

Other years dividend ie. Year 3.... = $2.62(1 + 3.7%) = $2.62(1 + 0.037) = 2.71694

Stock price today will then be:

= 3.55/(1 + 0.121) + 2.62/(1+0.121)^2 + 2.71694/(1 + 0.121)^2(0.121 - 0.037)

= 3.166815 + 2.08492 + 25.73887

= $30.98 approximately

Keidis Industries will pay a dividend of $2.85, $3.95, and $5.15 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $46.00 per share. The return on similar stocks is 9.5 percent. What is the current stock price? a) $54.72 b) $45.64 c) $42.38 d) $41.82 e) $47.81

Answers

Answer:

Present value = $41.8160 rounded off to $41.82

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3  +  P4 / (1+r)^4

Where,

r is the required rate of return

Present value = 2.85 / (1+0.095)  +  3.95 / (1+0.095)^2  +    

5.15 / (1+0.095)^3  +  46 / (1+0.095)^4

Present value = $41.8160 rounded off to $41.82

Keynes argued that: Group of answer choices the distinction between the short run and the long run is irrelevant. the long run is a more important policy concern than the short run. the short run is a more important policy concern than the long run. both the short run and the long run are equally important.

Answers

Answer:

C. the short run is a more important policy concern than the long run.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

According to the Keynesian Transmission Mechanism, the link between the money market and the goods and services market is indirect; because at first, short-term interest rates are lowered by an increase in the supply of reserves and then with time both the bond and bank loan rates falls. Consequently, this would make investments and aggregate demand (AD curve shifts rightward) to rise or increase as a result of the low cost of capital for investors and by extension it boost the level of production or quantity of output (real gross domestic product or Real GDP). This ultimately implies that, the interest rates affects the real and costs of capital (monetary changes).

Hence, Keynes argued that the short run is a more important policy concern than the long run and he was quoted as saying, in the long-run we're all dead.

When estimating demand, price is not the only factor to be considered. Three other elements are emphasized by economists, one of which is____.

Answers

Answer:

consumer income

Explanation:

The last of these factors that need to be considered is consumer income. This is a fairly simple one since, whether or not an individual customer/consumer can buy the product that you are offering, depends on whether or not they can afford it. This is all determined by their income. If the consumer population's average income increases then there will be more individuals with extra money that they can go and spend on such products like the one that you are selling. But the opposite can also happen where consumer average income decreases and there is less money for such purchases which means less demand.

A farmer is an example of what kind of producer?
A. Builder
O B. Raw-goods producer
C. Manufacturer
D. Service business

Answers

Answer:

Option B Raw goods producer

Explanation:

Raw-goods producer is the kind of producer of a farmer. Hence, option B is correct.

What is a Raw-goods producer?

A manufacturer of raw materials: Producers of raw goods are a primary source of dependency for most firms since they provide the raw materials required to create the desired final products. for instance, machinery for producing cement. They produce goods that satiate desires in subtle ways.

Producer commodities include things like a warehouse, a factory, or an office building. A service that helps the company generate more of the goods and services in its supply chain is also regarded as a producer good.

An individual who creates and provides goods or services is a producer. Factor inputs, such as labour and capital, are combined by producers to make, or transform, a product.

Thus, option B is correct.

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In a job order cost system, direct labor and factory overhead applied are debited to individual jobs. How are these items treated in a process cost system and why?

Answers

Answer:

The way the costs of direct labor and factory overhead applied are treated in a process costing system is different from their treatment in a job costing system.  In process costing system, they are debited to the Work in Process account.

The reason for this is that in process costing, costs are not directly attributable to individual jobs.  Instead, costs are accumulated in Work in Process before they are assigned to individual production units.

Explanation:

Job order costing system accumulates costs for individual jobs while a process costing system accumulates costs in the Work in Process account and then allocates the costs to individuals units of production.  The difference depends on the nature of the two systems and how possible it is to identify the costs and attribute them to individual jobs or units.

You are valuing an investment that will pay you $28,000 per year for the first 4 years, $43,000 per year for the next 12 years, $69,000 per year the next 16 years, and $61,000 per year for the following 13 years (all payments are at the end of each year). If the appropriate annual discount rate is 12.00%, what is the value of the investment to you today?a. $2,810,830.00.
b. $267,008.25.
c. $2,525,000.00.
d. $1,580,298.95.
e. $343,242.38.

Answers

Answer:

The value of the investment to you today is $441,751.52.

Note: The correct answer is is $441,751.52 but this is not included in the option. Kindly confirm the correct answer again from your teacher.

Explanation:

This can be determined using the following 5 steps:

Step 1. Calculation of today's of $28,000 per year for the first 4 years

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV28,000 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV28000 = Present value or today's value of of $28,000 per year for the first 4 years = ?

P = Annual payment = $28,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 4

Substitute the values into equation (1) to have:

PV28,000 = $28,000 * ((1 - (1 / (1 + 0.12))^4) / 0.12)

PV28,000 = $85,045.78

Step 2. Calculation of today's of $43,000 per year for the next 12 years

Present value at year 4 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 4 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV at 4 = Present value at year 4 = ?

P = Annual payment = $43,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 12

Substitute the values into equation (2) to have:

PV at 4 = $43,000 * ((1 - (1 / (1 + 0.12))^12) / 0.12)

PV at 4 = $266,358.09

Therefore, we have:

PV43000 = PV at 4 / (1 + r)^n .............................. (3)

Where;

PV43000 = Present value or today's value of of $43,000 per year for the first 12 years = ?

PV at 4 = $266,358.09

r = Annual discount return rate = 12%, or 0.12

n = number of years = 4

Substitute the values into equation (3) to have:

PV43000 = $266,358.09 / (1 + 0.12)^4

PV43000 = $169,275.38

Step 3. Calculation of today's of $69,000 per year for the next 16 years

Present value at year 12 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 12 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (4)

Where;

PV at 12 = Present value at year 12 = ?

P = Annual payment = $69,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 16

Substitute the values into equation (4) to have:

PV at 12 = $69,000 * ((1 - (1 / (1 + 0.12))^16) / 0.12)

PV at 12 = $481,205.04

Therefore, we have:

PV69000 = PV at 12 / (1 + r)^n .............................. (5)

Where;

PV69000 = Present value or today's value of of $69,000 per year for the first 16 years = ?

PV at 12 = $481,205.04

r = Annual discount return rate = 12%, or 0.12

n = number of years = 12

Substitute the values into equation (5) to have:

PV69000 = $481,205.04 / (1 + 0.12)^12

PV69000 = $123,513.35

Step 4. Calculation of today's of $61,000 per year for the next 13 years

Present value at year 16 can first be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV after 16 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (6)

Where;

PV at 16 = Present value at year 16 = ?

P = Annual payment = $61,000

r = Annual discount return rate = 12%, or 0.12

n = number of years = 13

Substitute the values into equation (6) to have:

PV at 16 = $61,000 * ((1 - (1 / (1 + 0.12))^13) / 0.12)

PV at 16 = $391,836.45

Therefore, we have:

PV61000 = PV at 16 / (1 + r)^n .............................. (7)

Where;

PV61000 = Present value or today's value of of $61,000 per year for the first 13 years = ?

PV at 16 = $391,836.45  

r = Annual discount return rate = 12%, or 0.12

n = number of years = 16

Substitute the values into equation (7) to have:

PV69000 = $391,836.45 / (1 + 0.12)^16

PV69000 = $63,917.01

Step 5. Calculation of the value of the investment to you today

This can be calculated by adding the values above:

PV = PV28,000 + PV43000 + PV69000 + PV69000 = $85,045.78 + $169,275.38 + $123,513.35 + $63,917.01 = $441,751.52

Therefore, the value of the investment to you today is $441,751.52.

Money is functioning as a medium of exchange if you:_________
a) compare book prices at the university bookstore versus online.
b) share a ride with your roommate instead of buying gas.
c) spend less this week so you'll have money for a concert next month.
d) purchase coffee at the local coffee shop before class.

Answers

Answer:

d) purchase coffee at the local coffee shop before class.

Explanation:

Money is used as a medium of exchange when buying or selling goods or services take place. Pertaining to this question, Money is functioning as a medium of exchange if you purchase coffee at the local coffee shop before class.

Suppose that an MTV, American Cable Channel, open and operates a recording studio in Hungary. This is an example of:________

a. foreign direct investment.
b. foreign indirect investment.
c. foreign portfolio investment.
d. financial intermediary investment

Answers

The answer is A. Foreign direct investment

Use context clues to explain the meaning of the word interdependence in your own words.

Answers

Being dependent on multiple things

When researching a career, you should consider which of the following:

A. Salary
B. Education requirements
C. Future outlook
D. All of the above


Someone help meeee!

Answers

In my opinion all of the above is correct

Answer:

D. All of the above

Explanation:

All 3 of these are important factors to consider when researching careers.

Salary is how much you will be paid for this occupation. this will determine your quality of life when working this job (eg how much extra $ you have, how comfortably you'd be able to live, etc.)

Education requirements tell you how much schooling you'll need to attend, what major is required, and how many years it would take to achieve those requirements.

Future outlook is how your life would go if you chose that career path, if there would be a chance to advance further, etc.

A new ad for the shampoo brand Better Not Younger focuses on how its products make aging hair feel softer, which is the ____________________ that the brand's marketing team would like to communicate.a. product attributeb. executional stylec. product benefitd. corporate identitye. lifestyle message

Answers

Answer: product benefit

Explanation:

When advertising a particular product, the product benefit simply means the benefits that the consumers will enjoy when they bunch such products.

In this case, Better Not Younger focuses on how its products make aging hair feel softer, therefore thus is the product benefit as this is what the consumers will enjoy when they purchase it.

Asking again bc no one answered the first time
20 points


Karl purchased a second, larger home in which to live. He has
decided to rent his first home out for $1,500 a month. His
mortgage on the first home is $1,250. Is this an example of
passive income?
A) No B) Yes

Answers

Answer:

i think it's no bc passive income is when you earn money by doing little work possible and it seems that he is spending his money on mortgage . i could be wrong buh i'm pretty sure it's no

Lala Company accounts for noncurrent assets using the cost model. On October 1, 2019, Lala classified a noncurrent asset held for sale. At that date, the asset’s carrying amount was P1,600,000, its fair value was estimated at P1,100,000 and the cost to sell at P100,000. On December 15, 2019, the asset was sold for net proceeds of P925,000. What amount should be included as an impairment loss in Lala’s statement of comprehensive income for the year ended December 31 ,2019?

Answers

Answer:

you add 1,600,000 + 1,100,000=2,700,000 - 100,000=2,600,000+925,000=                  your finally answer is 3,525,000

Explanation:

Answer:

3,525,000

Hope this helps! Good luck! :)

The following financial information is available for Flint Corporation.

(in millions) 2017 2016
Average common stockholders’ equity $2,825 $2,925
Dividends declared for common stockholders 335 630
Dividends declared for preferred stockholders 45 45
Net income 605 685

Required:
Calculate the payout ratio and return on common stockholders’ equity ratio for 2017 and 2016.

Answers

Answer:

dividends payout ratio = total dividends / net income

dividends payout ratio 2016 = $630 / $685 = 0.9197 = 91.97%dividends payout ratio 2017 = $335 / $605 = 0.5537 = 55.37%

return on equity = (net income - preferred dividends) / average equity

return on equity 2016 = ($685 - $45) / $2,925 = 0.2188 = 21.88%return on equity 2017 = ($605 - $45) / $2,825 = 0.1982 = 19.82%

A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 40% complete. Total production costs are $666,000. The cost of ending Goods in Process Inventory is:______.

Answers

Answer: $36,000

Explanation:

First calculate the Equivalent Units of Production;

= 21,000 + (3,000 * 40%)

= 21,000 + 1,200

= 22,200 units

Then find the cost of each units.

= Total production cost/ Equivalent units of production

= 666,000/22,200

= $30 per unit

Then the cost of ending Goods in Process Inventory is:

= Equivalent ending process inventory units * cost per unit

= 1,200 * 30

= $36,000

On January 1, 2019. A Corp purchased equipment for $20,000. The equipment had an estimated useful life of 5 years and a salvage value of $2,000. A Corp. uses the straight-line method for depreciation It A Corp sells the equipment for $13,600 on December 31 2020, it will have an:___________. (Hint: Watch the dates) a. $2,000 loss. b. $2,000 gain c. $800 gain d. $800 loss

Answers

Answer:

c. $800 gain

Explanation:

First we need to calculate the accumulated depreciation as on December 31, 2020

Accumulated depreciation = ( ( Cost - Salvage value ) / Useful Life ) x Numbers of years

Placing values in the formula

Accumulated depreciation = ( ( $20,000 - $2,000 ) / 5 year ) x ( December

31, 2020 - January 1, 2019 )

Accumulated depreciation = $3,600 x 2 years

Accumulated depreciation = $7,200

Now calculate the carrying value as on December 31, 2020

Carrying Value = Cost of asset - Accumulated Depreciation

Placing values in the formula

Carrying Value = $20,000 - $7,200 = $12,800

Now calculate the gain or loss on disposal

Gain / Loss on Disposal = Sale price - Carrying value

Placing values in the formula

Gain / Loss on Disposal = $13,600 - $12,800

Gain on Disposal = $800 Gain

What is a survey?
A. It is when only a portion of a population is researched.
B. It is a research method where the researcher assembles small
groups of people.
C. It involves recording actions or events related to buying behavior.
D. It is a set of questions used for gathering data.

Answers

D. It is a set of questions used for gathering data
Ex: let's say it's like school they gym survey they would ask you questions about your health or your activity and things like that so they can know if your health is good or not

It is a set of questions used for gathering data is a survey. Hence, option D is correct.

What is gathering data?

Data collection is the process of gathering and measuring information on variables of interest in a systematic and prescribed manner in order to respond to specific research questions, test hypotheses, and evaluate findings.

The methods usually utilized in TNA to collect data include surveys and interviews. Because each TNA has characteristics that make it more or less effective according on the situation and the parties involved, it is necessary to select which one to utilize.

Data enables businesses to evaluate the efficacy of a certain strategy: Gathering data after implementing solutions to a problem will allow you to determine how well your strategy is functioning and whether it needs to be modified over time.

Thus, option D is correct.

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Mr. Roy is a sincere and hardworking person who does his job quietly and does not like to argue much. He prefers to write notes and send written messages instead of face-to-face interaction. He is being given the responsibility of leading a team to handle a prestigious project. But before that he has to get the project approved by the board of directors. Can you suggest what style of communication he should use to make it a success?

Answers

Answer:

Assertive Communication Style

Explanation:

The best communication style for Mr. Roy in this scenario would be an Assertive Communication Style. This style would allow Roy to properly and efficiently explain to the board of directors the various details and benefits of the project in order for it to get approved. Since Mr. Roy does not like face-to-face interactions this would be the best style since, when written, this style is displayed as professional and to the point as opposed to other styles such as an aggressive or manipulative style which comes off as angry or demanding and can jeopardize the presentation.

Nearly half of all marriages in the United States end in divorce. Briefly describe how sociologists might view this situation from the structural-functional approach, the social-conflict approach, and the symbolic-interaction approach. Also indicate whether each approach takes a macro-level orientation or a micro-level orientation

Answers

Answer:

they could first find why they are fighting why they want to divorce and go from there its not that descriptive but if it was it would be macro level

Explanation:

The structural-functional approach views divorce as a breakdown of the social institution of marriage, which serves important functions in society, such as reproducing and socializing children.

The social-conflict approach sees divorce as a result of power struggles between men and women, highlighting how gender inequality and economic disparities contribute to divorce rates. This approach takes a macro-level orientation.

Lastly, the symbolic-interaction approach focuses on how individuals make sense of divorce and how it affects their daily interactions and sense of self. This approach takes a micro-level orientation. Understanding divorce through these different sociological perspectives can shed light on the various factors contributing to the high divorce rates in the United States.

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In each succeeding payment on an installment note:

a. The amount that goes to interest expense increases.
b. The amount that goes to interest expense decreases.
c. The amount that goes to interest expense is unchanged.
d. The amounts paid for both interest and principal increase proportionately.

Answers

Answer:

In each succeeding payment on an installment note:

b. The amount that goes to interest expense decreases.

Explanation:

With each installment settled, the principal amount will continue to reduce and as a result, the amount that will be recognized as interest expense will also decrease.  This is because the interest expense is calculated based on the principal amount, which is decreasing with each installment.  The interest expense for a previous period will not be the same for the future period.

Which type of business constituent has titles such as President and CEO?

Answers

Answer:       s corporations

Explanation:

hope this helps.         With an S corporation that has a single shareholder, he or she can be called the president, CEO, or another title. S corporations with more than one shareholder can issue titles at the time of formation.

A polisher costs $10,000 and will cost $20,000 a year to operate and maintain.If the discount rate is 10% and the polisher will last for 5 years,what is the equivalent annual cost of the tool?
A) $17,163.04
B) $22,187.84
C) $22,637.98
D) $19,411.15

Answers

Answer: $22637.98

Explanation:

Based on the information given in the question, the equivalent annual cost of the tool will be calculated as:

We first calculate the present value which will be:

= 10000 + 20000/(1+.10) + 20000/(1+.10)^2 + 20000/(1+.10)^3 + 20000/(1+.10)^4 + 20000/(1+.10)^5

= $85815.74

The the equivalent annual cost will be:

= Present Value/PVIFA(10%,5)

= 85815.74/3.7908

= $22637.98

Suppose your foreign government, threatened with bankruptcy, decided to tax the interest income on its own bonds as part of an effort to rectify serious budgetary woes. What would you expect to see happen to the yields on these bonds?

a. You would expect the yields to rise due to increased default risk.
b. You would expect the yields to fell due to decreased default risk.
c. You would expect the yields to rise to compensate investors for the loss of the tax-exempt status.
d. You would expect the yields to fell due to increased default risk.

Answers

Answer:

a. You would expect the yields to rise due to increased default risk.

c. You would expect the yields to rise to compensate investors for the loss of the tax-exempt status.

Explanation:

The foreign government is threatened with bankruptcy which means that the government might be unable to pay their bond obligations. This means that the risk of default has now increased and so yields will rise as a result of this.

Tax exempt bonds like Municipal bonds generally have lower yields because of their tax savings. If the Government was to impose taxes on previously tax exempt bonds, people would be getting less and so would have to be compensated for this loss by increased yields.

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