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hichkok12 [17]
2 years ago
7

a sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?

Business
1 answer:
Elza [17]2 years ago
3 0

Complete Question:

A sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?

a. depreciation

b. mortgage interest

c. rent

d. Utilities

Answer:

b. mortgage interest

Explanation:

The sole proprietor with a tentative loss may deduct expenses for mortgage interest, mortgage insurance premiums, and real estate taxes under the normal rules.   The sole proprietor is not allowed to deduct other expenses that are normally tax-exempt expenses, including depreciation, rent, and utilities.  The amount to be deducted for mortgage interest should not exceed the percentage for business use.

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Employers can try to overcome the moral-hazard problem involving their employees by:
BartSMP [9]

Answer:

Option D             

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.    

5 0
2 years ago
What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by
Bond [772]

Answer:

The answer is: D) Dividend growth model

Explanation:

The dividend growth model is a stock valuation model which calculates the fair market value of stock by assuming that the stock's dividends grow at a stable rate in perpetuity.

The dividend growth model determines if a stock is overpriced or underpriced, based on the assumption that the stock's expected dividends grow at a given value (g) forever, which is subtracted from the return rate (r).

Price = Dividend / ( r – g )

5 0
2 years ago
5) Scanlin, Inc. is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the fi
rewona [7]

Answer:

The PV of future cash flow is $22,925,764, therefore the company should take on the project

Explanation:

In order to know if the company should take on the project we have to calculate the PV of future cash flow as follows:

PV of future cash flow=<u>    D1    </u>

                                        RE-g

To calculate this formula we requre to calculate the WACC and the discount rate as follows:

WACC=(1.00/1.80×0.11)+0+(0.80/1.80×0.046)

WACC=0.0611+0+0.02044

WACC=0.081556

WACC=8.16%

After having calculated the WACC we can calculate the project discount rate as follows:

project discount rate=WACC + Additional risk factor

=8.16%+3%

=11.16%

Therefore, PV of future cash flow= <u>$2,100,000</u>

                                                            0.1116-0.02

PV of future cash flow= <u>$2,100,000</u>

                                            0.0916

PV of future cash flow=$22,925,764

The PV of future cash flow is $22,925,764, therefore the company should take on the project

4 0
2 years ago
Hillsdale is considering two options for comparable computer software. Option A will cost $25,000 plus annual license renewals o
Jlenok [28]

Answer:

Option a should be selected

Explanation:

After considering the PV of both options A and B the option that has been selected is A.

For option A:-

A total of the present value of option A= -25000-925.926-857.339-793.832 = -27577.097

Present value = 27577

For option B,:-

Total = -20,000-3703.704-2572.017-1587.664

= -27863.385

The present value of option B = 27863

From the calculations I have attached, it is evident that option A has lower present value compared to option B. Therefore option A should be selected.

4 0
2 years ago
Which of these projects is likely to have the higher asset beta, other things equal? Why? a. The sales force for project A is pa
jeka57 [31]

Answer: A and B

Explanation: The above projects is likely to have higher asset beta other things being equal because people or workers are motivated by Money which would aid them to perform and give hundred percent on any project.

Abraham Maslow gives us a good explanation around Motivation-Starting from the premise that each human being is motivated by needs that are inborn, presumably as a result of tens of thousands of years of evolution, the Maslow theory of motivation suggests a hierarchy of needs:  

Physiological needs  

These are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other things.  

Safety needs  

These have to do with establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. We need the security of a home and family. However, if a family is dysfunction, i.e., an abused child - cannot move to the next level as she is continuously fearful for her safety. Love and a sense of belonging are postponed until she feel safe.  

Love and needs of belonging  

Humans have [in varying degrees of intensity] a strong desire to affiliate by joining groups such as societies, clubs, professional associations, churches and religious groups etc. There is a universal need to feel love and acceptance by others.  

Self-Esteem needs  

There are essentially two types of esteem needs:self-esteem resulting from competence or mastery of a task; and the esteem and good opinion of other people.  

The need for self-actualisation  

Maslow theory of motivation proposes that people who have all their "lower order" needs met progress towards the fulfilment their potential. Typically this can include the pursuit of knowledge, peace, esthetic experiences, self-fulfillment, oneness with God, nirvana, enlightenment etc. So ultimately this is all to do with the desire for self transcendence.

7 0
2 years ago
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