Answer:
b. $150
Explanation:
Standard deduction refers to deduction available to an individual at a flat rate say 30%.Whereas in itemized deductions, an individual can claim deductions at different rates on different items.
Usually itemized deductions are more beneficial to an individual and in case tax saving in these cases exceeds total standard deductions, itemized deductions should be preferred.
In the given case, contribution of $1000 to church shall amount to a deduction. Since the tax rate applicable to the individual is 15%, the savings in tax shall amount to 15% of $1000 i.e $150.
Answer:
c. cash, checking account balances, and travelers' checks.
Explanation:
Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:
-M0: narrowly, it means the hard currency in circulation
-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.
-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.
-M2: covers M1 and saving accounts and CDs.
-M3: it surrounds the larger deposits.
-MZM: finally, this indicates the money market deposits.
That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.
Answer:
Classification of Projects
The projects are classified as shown below:
Strategy Project:
Strategy projects supports organizations long term mission. it helps in increasing market share and revenue. Among the given projects, the strategy projects are:
b. build a 4 mile nature hiking trail.
d. Launch a new promotional campaign with Hawaii Airlines.
e. Convert 12 adjacent acres into wildlife preserve.
g. Change hotel brochures to reflect Eco-tourism image.
i. Introduce wireless internet service in cafe and lounge areas.
Operational Projects:
These projects support current business operations. Among the given projects, the operational projects are:
c. Renovate horse bran.
Compliance Projects:
These are those must do projects to function under a particular category. Among the given projects, the compliance projects are:
a. Convert the pool heating system from electrical to solar power.
f. Update all bathrooms in condos that are 10 years old or older.
h. Test and revise disaster response plan.
Not all projects are easy to classify. There are always some things falling under more than one category. Categorizing projects will help us to prioritize the implementation of the same. Compliance projects should be done at any cost. The organization's view will be reflected in the strategy projects. Operational projects can be postponed if financial budget constraint exists but compliance cannot be postponed.
Answer:
The price of the bonds $483,841.97
Journal entry:
Dr cash $483,841.97
Dr discount on bonds payable $16,158.03
Cr bonds payable $500,000.00
Explanation:
Using a financial calculator, we determine the bond price by using the following inputs:
N=8(number of semiannual coupons in 4 years=4*2=8)
PMT=22500 (semiannual coupon=face value*coupon rate*6/12= $500,000*9%*6/12=$22,500)
I/Y=5(semiannual yield=10%%*6/12=5%)
FV=500000( the face value is $600,000)
CPT PV=$483,841.97
Bond discount=face value-bond price
Bond discount=$500,000-$483,841.97
Bond discount=$16,158.03
The double entries are to debit cash and discount on bonds payable with $483,841.97 and $16,158.03 respectively while bonds payable is credited with the face value of $500,000
