Answer: The Reserve Bank of India keeps all of Advika’s foreign currency for her.
Explanation:
When a country uses exchange controls, it limits the amount of foreign currency that can come into a country. This is usually done to ensure stability in the money market of the country as well as to improve the balance of payments for the country.
One way of implementing exchange control is for all foreign currency to go through the Central bank of the country. Should a citizen need access to foreign currency, they would need to apply to the central bank to access it. With India having an exchange control system, the Reserve Bank of India keeps all foreign currency and Advika would have to apply for it should she need it.
Answer and Explanation:
a. The computation of Kiyara’s deduction for qualified business income is shown below:-
Kiyara's Share of income is
= 50% × $332,000
= $166,000
Max qualified business deduction is
= 20% × $166,000
= $33,200
b. The computation of Kiyara’s net investment income tax liability is shown below:-
Net investment income tax liability = $166,000 × 3.8%
= $6,308
c. The computation of Kiyara’s self-employment tax liability is shown below:-
Kiyara is not earning Jazz Corp.'s self-employment taxable income because Kiyara is not doing work for Jazz Corp.
Hence, the tax liability for self-employment is 0.
d. The computation of Kiyara’s additional Medicare tax liability is shown below:-
Additional medicare tax liability
= $282,000 - $200,000
= $82,000 × 0.9%
= $738
Answer:
Option (D) is correct.
Explanation:
Given that,
Began July with a finished-goods inventory = $48,000
Finished-goods inventory at the end of July = $56,000
Cost of goods sold during the month = $125,000
Cost of goods manufactured during July:
= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory
= $56,000 + $125,000 - $48,000
= $133,000
Answer:
Option (B) 10.87%
Explanation:
Data provided in the question:
common stock outstanding = 30,000
Market price = $15.00
Issuing price of share = $31 per share
Total face value = $280,000
Selling price = 86% of par
Cost of equity, ke = 13%
After-tax cost of debt, kd = 6.9%
Beta = 1.48
Tax rate = 30%
Now,
Market value of debt, Md = Total face value × Selling price
= $280,000 × 86%
= $240,800
Market value of equity, Me = Stocks outstanding × Market price
= 30,000 × $15
= 450,000
Thus,
WACC = [ Kd × Md + Ke × Me ] ÷ ( Md + Me )
= [ 0.069 × $240,800 + 0.13 × $450,000 ] ÷ ( $240,800 + $450,000 )
= $75,115.20 ÷ $690,800
= 0.1087
or
= 0.1087 × 100%
= 10.87%
Option (B) 10.87%
Answer:
$204,080
Explanation:
The computation of operating cost is shown below:-
operating cost if occupy 55%
Cost on (800 × 90%)
= 720 units is $220,040
Cost on (800 × 80%)
= 640 Units is $215,480
Variable cost per unit = Changes in total cost ÷ High activity-Low activity
= ($220,040 - $$215,480) ÷ (720 - 640)
= 4,560 ÷ 80
= 57 per unit
Fixed cost = Total cost - Variable cost
= $220,040 - (720 × 57)
= $179,000
Cost equation:
Total cost = Fixed cost + Variable cost per unit
Y = $179,000 + 57X
Y = $1790,00 + (57 × 440)
Y = $204,080