<u>Solution and Explanation:</u>
As per the income tax, if the income of a single taxpayer lies in the range of $65000 and $80000, the taxpayer is elgibile for a prtial deduction on his/her education on loan interest.
The partial interest deduction amount is calculated as follows:
Partial interest deduction allowed = 
= $320
Therefore, the allowed interest deduction in this case is $320.
Answer:
His total amount of interest over the period of 30 years would be $608,290.26.
Explanation:
His loan will be calculated based upon the remaining principle after each monthly payment.
For example his 1st payment @6.25% interest rate on full amount of $500,000 would be ($500,000*6.25%= $31,250/12 = $2,604.17). We divide the total amount of interest by 12 to get the monthly payment amount.
Now after we get the interest amount, we reduce this interest amount from his total monthly payment of $3,078.59 to get the monthly principle repayment which comes out at $474.42 for the first month.
After that we reduce this principle repayment from his original loan balance of $500,000 to get his new balance of $499,525 on which interest will be levied i.e. ($499,525*6.25%/12 = 2601.7). This step goes on for 30 years and his total interest payment in those 30 years will be $608,290.26.
Answer:
A. $22,000 decrease
Explanation:
The reason behind Granfield Company interested in predicting the increase or decrease in net income when they purchase new machinery by selling an old one is because you have the Cash coming through so that they don't run out of money. As per Generally Accepted Accounting Principles (GAAP) the other name of Profits is Net Income. The company may not have Cash in the bank but their Net Income may be in millions. So, when Companies like Granfield when usually invests are usually concerned about their investments that weather they will be profitable or not. In this instance of Granfield Company, they predict that by acquiring the new machinery they will save on manufacturing overhead by $19,000 over 4 years which accumulates to $76,000.
Annual Savings = $19,000 x 4 = $76,000
We are told to ignore the time value of money here so if the proceeds from previous machinery are $22,000, then add the proceeds from machinery and annual savings and we get a total of $98,000
Annual Savings $76,000
Add: Proceeds from Sale of Machine $22,000
Total Savings $98,000
To find the increase or decrease in net income or the effect of purchase of new machinery and disposal of old machinery on net income can be calculated as follows;
Total Savings $98,000
Less: Purchase of New Machinery $120,000
Decrease in Net Income $22,000
Hence the Net Income will decrease by $22,000 which means there will be a decrease in retained earnings and stockholders' equity.
Option A is the Correct answer.
Answer:
The correct answer is A) Passive.
Explanation:
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Answer:
Explanation:
a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4
price P=15-Q=10-4=6
profit=6*3-TC=18-(3+4+0.5*4^2)=3
b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.
c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.
d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.
