Answer:
D) net profit before taxes; total assets invested
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = Operating Income ÷ Total assets invested
It shows a relationship between the pre taxes operating income and the total assets investment
It checks that investment which is invested yields high returns or not. If it generates high returns that it will gain to the company else the company will suffered the losses.
Answer:
c the price elasticity of demand is about 1.43 and an increase in the airfare will cause airlines' total revenue to decrease.
Explanation:
q1 2,000 p1 250
revenue1 = quantity x price = 2,000x250 = 500,000
q2 1,700 p2 280
revenue2 = 1,700 x 280 = 476,000
<u>Midpoint formula:</u>
Ep = -1.432432432
As the price elasticity is above -1 the decrease in quantity is greater than the decrease in price thus, the revenue of the firm decreases if increase the price.
First calculate the amount financed
Amount financed=725−50=675
The formula is
I=(2yc)/(m (n+1))
Solve for c to get
C=(I×m×(n+1))/2y
C=(0.14×675×(24+1))÷(2×12)=98.44
Total of payments=675+98.44=773.44
Monthly payment is
773.44÷24=32.23
Hope it helps!
Answer:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Explanation:
A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.
Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)
2. The higher after tax real gain is for Stephanie losing 35% of her income
which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.
Explanation
The inflation rate is not considered in the calculation because it's constant for both parties.
