Answer:
A. $424,000
Explanation:
current income = Taxable income - Federal tax + Depreciation disallowed + net capital loss carryover
= $400,000 - $136,000 + ($200,000 - $60,000) + $20,000
= $424000
Therefore, The corporation's current earnings and profits for 20X3 would be $424000.
Answer:
Yen depreciated its value against US$
Explanation:
The reason was that the Japanese government has a free trade agreement with the United States and what happened was that the Yen appreciated against Dollars by which the Japanese companies might had suffered as the american products would have been imported more to the country because now they are cheaper than the Japanese cars, as a result the industry in the Japan would had suffered. So the government of japan set 115 Yen as apposed to 85 Yen against each dollars which resulted in increase in the demand of the manufacturing of the cars. Now the Japanese products were greater in demand because of they cost less. And at the year end 2015, the Sabaru reported $2 billion profit despite the fact that 80% of its production was in Japan. The american auto suffered loss of market by $2 Billion.
Answer:
1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.
2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.
Explanation:
Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.
In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
In the first case,
Future value = $2,050 × (1 + 0.12)^12
= $2,050 × 3.895975993
= $7,986.75
In the second case,
Future value = $8,352 × (1 + 0.10)^6
= $8,352 × 1.771561
= $14,796.08
In the third case,
Future value = $72,355× (1 + 0.11)^13
= $72,355 × 3.883280163
= $280,974.74
In the fourth case,
Future value = $179,796 × (1 + 0.07)^7
= $179,796 × 1.605781476
= $288,713.09
Answer: Option B
Explanation: In simple words, price elasticity refers to the degree of change that a commodity experiences due to change in its price.
In case of coca- cola, the price elasticity will be high as it has a close substitute available in the market named Pepsi. Therefore, if coca-coal increases its prices,its consumers would shift their demand to Pepsi.
Thus,from the above we can conclude that the correct option is B.
