Answer:
correct option is a.$0
Explanation:
given data
passive activity losses = $150,000
active business income = $120,000
portfolio income = $30,000
to find out
how much passive activity loss can White Corporation deduct
solution
as per given we know that here white corporation is a Personal Service Corporation
so that it is not deduct the passive loss against the portfolio income
so correct option is a.$0
Answer:
Expected Return =
Recession = ( 20/100)* 20% = 4%
Steady = (40/100)*10% = 4%
Boom = ( 40/100) * 35% =<u> 14%</u>
Expected Return = <u> 22%</u>
there is no answer in the option. The correct answer is 22%.
Explanation:
Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.
Answer:
a) Operating income - $33,800
Explanation:
<em>The flexible budget would be prepared for a different activity level of 6,300 production units but using the assumptions of the fixed budget</em>
$
Sales revenue - ($7× 6,300 units ) : 44,100.00
Less Variable cost - ($1 × 6,300 units ) : <u>( 6,300)</u>
Contribution 37,800
Less Fixed costs <u>(4,000)</u>
<u>33,800</u>
<em>Note that the fixed costs of $4000 remains the same for both the static and flexible budgets. This is because the activity level of 6,300 units of the flexible budget remains within relevant range. So the fixed cost would not change.</em>
Lowest because to show how scarce it is it will have to be low