Excise or “sin” taxes are taxes that are levied on the sale, manufacture, or use of goods and services that are usually considered unhealthy or immoral.
This typically includes items such as cigarettes, alcohol, and gasoline. However, snacks are not typically included in this category as they are not considered to be unhealthy or immoral.
Snacks, unlike the other items, are not considered to be addictive and do not have the same health risks associated with them. As a result, most governments do not levy an excise tax on snacks.
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marz inc. made a $45,000 cash expenditure this year (year 0). compute the after-tax cost if marz must capitalize the expenditure and amortize it ratably over three years, beginning in year 0. marz has a 21% marginal tax rate and uses a 8% discount rate. year 1 year 2 year 3 pv factor at 8% .9259 .8573 .7938
The after-tax cost of the $45,000 cash expenditure is $8,112.65.
To compute the after-tax cost of the $45,000 cash expenditure, we need to consider the capitalization and amortization of the expenditure, as well as the marginal tax rate and discount rate.
Step 1: Calculate the annual amortization expense
Since the expenditure is amortized over three years, we divide the total expenditure by three: $45,000 / 3 = $15,000. This gives us the annual amortization expense.
Step 2: Determine the after-tax cost
To calculate the after-tax cost, we need to consider the tax savings resulting from deducting the amortization expense. The tax savings is equal to the amortization expense multiplied by the marginal tax rate: $15,000 * 21% = $3,150.
Step 3: Discount the after-tax cash flows
To calculate the present value of the after-tax cash flows, we multiply the after-tax savings by the present value factor for each year, based on the discount rate provided.
Year 1: $3,150 * 0.9259 = $2,913.135
Year 2: $3,150 * 0.8573 = $2,701.445
Year 3: $3,150 * 0.7938 = $2,498.070
Step 4: Sum up the present value of the after-tax cash flows
Add up the present values of the after-tax cash flows to determine the after-tax cost: $2,913.135 + $2,701.445 + $2,498.070 = $8,112.65
Therefore, the after-tax cost of the $45,000 cash expenditure is $8,112.65.
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Tj+industries+has+revenue+of+$400,000+and+expenses+of+$250,000.+the+depreciation+cost+is+$80,000+and+marginal+tax+rate+is+35%.+calculate+depreciation+tax+shield
The Depreciation tax shield is $28,000
Depreciation is an annual earnings tax deduction that permits you to get better the fee or different foundation of sure property over the time you use the belongings. it is an allowance for the wear and tear, deterioration, or obsolescence of the property.
An employer's depreciation fee reduces the number of profits on which taxes are based totally, as a result reducing the quantity of taxes owed. the larger the depreciation expense, the decrease the taxable profits, and the decrease a corporation's tax invoice.
TJ Industries revenue = $400,000.
Expenses = $250,000
Depreciation expenses = $80,000
Marginal tax rate = 35%
Depreciation tax shield = Depreciation expenses * Marginal tax rate
Depreciation tax shield = $80,000 * 35%
= $28,000
The answer$28,000
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Which of the following best describes the objectives of the Monetary Policy?
a. controlling banks over our currencies
b. controlling household money in circulation
c. controlling the firm's money in circulation
d. managing or manipulating the money supply in the economy
Answer:
d. managing or manipulating the money supply in the economy
Explanation:
i feel like it's D
Answer:
d. managing or manipulating the money supply in the economy
Career Cluster
If your dream is to be an elementary school teacher, the
might be best for you.
A. Education and Training
B. Human Services
C. Health Sciences
D. Training and Instruction
Answer: A
Explanation
Which of the following can cause a run-time error?
A programmer anticipated a positive whole number, and the user input a negative decimal value.
A programmer anticipated text data, and the user input text data.
A programmer anticipated numeric data, and the user input numeric data.
A variable was not defined because of a typographical error in the definition of that variable.
Answer:
A programmer anticipated a positive whole number, and the user input a negative decimal value.
Explanation:
Edge : )
Answer:
A programmer anticipated text data, and the user input text data.
When the IPO for the successful Sweet Cookie Company came out, Bud bought 1,000 shares for $5.50 each. His friend eventually bought 500 shares at $8 each. It is most likely that Bud is _____. (Select all that apply.)
ANSWER:
-an investment Banker
-a customer of an investment Banker
The answer is - an investment banker and a customer of an investment Banker.
Therefore, When the IPO for the successful Sweet Cookie Company came out, Bud bought 1,000 shares for $5.50 each. His friend eventually bought 500 shares at $8 each. It is most likely that Bud is - an investment banker and a customer of an investment Banker.
Hence, the correct answers are-
-an investment Banker-a customer of an investment BankerWhat is the simplest definition of investment?An investment is an asset or object purchased with the intent of creating income or appreciation.
The term "appreciation" refers to the growth in the worth of an asset through time. When an individual acquires a thing as an investment, the intention is not to consume the commodity but rather to use it in the future to produce wealth.
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power drive corporation designs and produces a line of golf equipment and golf apparel. power drive has 100,000 shares of common stock outstanding as of the beginning of 2024. power drive has the following transactions affecting stockholders' equity in 2024. march 1issues 61,000 additional shares of $1 par value common stock for $58 per 10purchases 5,600 shares of treasury stock for $61 per 1declares a cash dividend of $1.80 per share to all stockholders of record on june 15. (hint: dividends are not paid on treasury stock.)july 1pays the cash dividend declared on june 1.october 21resells 2,800 shares of treasury stock purchased on may 10 for $66 per drive corporation has the following beginning balances in its stockholders' equity accounts on january 1, 2024: common stock, $100,000; additional paid-in capital, $5,100,000; and retained earnings, $2,600,000. net income for the year ended december 31, 2024, is $660,000.required:prepare the statement of stockholders' equity for power drive corporation for the year ended december 31, 2024
The statement of stockholders' equity shows the changes in the company's equity accounts over the year. It includes the issuance of additional shares of common stock, the purchase and resale of treasury stock, the declaration and payment of dividends, and the net income earned.
Total Stockholders' Equity:
Common Stock + Additional Paid-in Capital + Retained Earnings + Treasury Stock
$161,000 + $5,100,000 + $3,080,000 + ($157,800) = $8,183,200
Statement of Stockholders' Equity
For the Year Ended December 31, 2024
Common Stock:
Beginning Balance: $100,000
Issuance of Additional Shares: $61,000
Ending Balance: $161,000
Additional Paid-in Capital:
Beginning Balance: $5,100,000
Ending Balance: $5,100,000
Retained Earnings:
Beginning Balance: $2,600,000
Net Income: $660,000
Dividends: ($1.80 * 100,000 shares) = $180,000
Ending Balance: $3,080,000
Treasury Stock:
Beginning Balance: $0
Purchase of Treasury Stock: ($61 * 5,600 shares) = ($342,600)
Resale of Treasury Stock: ($66 * 2,800 shares) = $184,800
Ending Balance: ($157,800)
Total Stockholders' Equity:
Common Stock + Additional Paid-in Capital + Retained Earnings + Treasury Stock
$161,000 + $5,100,000 + $3,080,000 + ($157,800) = $8,183,200
Note: The statement of stockholders' equity shows the changes in the company's equity accounts over the year. It includes the issuance of additional shares of common stock, the purchase and resale of treasury stock, the declaration and payment of dividends, and the net income earned. The ending balances for each equity account are calculated by considering the beginning balances and the changes during the year. The total stockholders' equity represents the overall equity position of the company at the end of the year.
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If you have easy access to a computer, your job search efforts should be limited to the Internet. Please select the best answer from the choices provided
Answer:
false
Explanation:
Answer: false
Explanation:
career question will mark first answer brainliest
Answer:
B.
Explanation:
I hope that helps!!!!!!!!
If you’re thinking about a career as an applied mathematician, you should consider researching the_cluster. Within this cluster, you’ll find that most of the careers require_in order to have the knowledge and skills needed to excel in these positions.
Answer:
Mathematical literacy is the ability to analyze, reason, and communicate ideas effectively through posing, formulating, solving, and interpreting solutions to mathematical problems in a variety of situations.
The following clusters should be researched;
• Probability/Statistics
• Research/Optimization
• Discrete Mathematics
• Scientific Computing
The programs that emphasize mathematical reasoning, mathematical modeling and computation, abstraction from the particular, innovative application of mathematics, and development of new methodology.
Explanation:
My question got removed but can someone please help me with what the PESTEL anylasis for covergirl is. Please only real answers no links:)
Answer:
through this PESTLE Analysis for L’Oreal, the cosmetics and skincare giant, you now have an idea of where the brand currently stands in terms of business.
A brand as prestigious as L’Oreal, with such a rich history behind it, truly is inspiring especially because they managed to lead the market for over 100 years. It really boggles your mind to think they’ve made a century.
The brand although in no way is under even the slightest suspicion of extinction, they still have to work on correcting a few wrongs, the most important of which is completely eliminating animal testing. That will never be brushed under the rug. They also need to be very cautious of the contributing people in their supply chain so as to eliminate all sorts of slavery. They should develop a concrete policy on their use of toxins as well.
You will never be able to view a company in a full 360-degree perspective until you focus on understanding the various macro-economic factors that affect it. These factors play a very big role in shaping up the company’s overall performance. A PEST Analysis will help you not only in the identification but a thorough explanation of all of these factors
PESTLE is simply an acronym for political, economic, socio-cultural, technological, legal, and environmental analysis, which helps one in understanding where a company stands in depth.
You are more than welcome to visit our website if you wish to teach yourself how to work on a PEST analysis. We have all the detail you would need for comprehending the entire process. In fact, for those of you who wish to put their knowledge to practice, we even have the perfect PESTLE Analysis template for you to make things faster.
What does it mean to live on "borrowed money"?
Answer:
Using money that you have borrowed from friends and family.
Explanation:
2) Haile Reort opened for buine on June 1 with eight air conditioned unit. It trial
balance on Augut 31 i a follow. Haile Reort
Trial Balance
Augut 31, 2022
Debit Credit
Cah Br. 39,200
Prepaid Inurance 9,000
Supplie 5,200
Land 40,000
Building 240,000
Equipment 32,000
Account Payable Br. 9,000
Unearned Rent Revenue 9,200
Mortgage Payable 100,000
Share Capital—Ordinary 200,000
Retained Earning 0
Dividend 10,000
Rent Revenue 172,400
Salarie and Wage Expene 89,600
Utilitie Expene 18,400
Maintenance and Repair Expene 7,200
Br. 490,600 Br. 490,600
Other data:
1. The balance in prepaid inurance i a 1-year premium paid on June 1, 2022. 2. An inventory count on Augut 31 how Br. 1,300 of upplie on hand. 3. Annual depreciation rate are building (4%) and equipment (10%). 4. Unearned rent revenue of Br. 7,600 hould be recognized a revenue prior
Haile Resort records $498,283.33 on its adjusted trial balance.
The complete adjusted trial balance table is attached below.
Based on the given information, we can construct an unadjusted trial balance first. Next, we will discuss every inputs we should make on the adjusting entries. Using the adjusting entries data, we then can construct the adjusted trial balance.
Prepaid InsuranceThe $9,000 prepaid insurance was paid on June 1, 2022. On August 31, 2022, the prepaid insurance has been accrued for 3 months as insurance expense. The amount of insurance expense accrued is:
Insurance expense = Prepaid insurance x 3/12
Insurance expense = $9,000 x 3/12
Insurance expense = $2,250
The amount of insurance expense will deduct (credit) the amount in the prepaid insurance account. To balance this transaction, we need to create another account called Insurance expense and record the amount on debit.
Supplies InventoryOn the given trial balance, Haile records $5,200 supplies inventory/ However by the end of August 2022, the remaining supplies on hand is $1,300. We can conclude that some supplies are used and have to be recorded as supplies expense. Supplies expense recorded is:
Supplies expense = Beginning supplies - Ending supplies
Supplies expense = $5,200 - $1,300
Supplies expense = $3,900
Supplies expense will be recorded as a new account on debit and the same amount will be deducted (credited) from the supplies account.
DepreciationOn this case, we assume that either building or equipment's depreciation are calculated since Haile was open for business. The depreciation for the last 3 months shold be recorded under depreciation expense account. Please not that the given deprecation rate is in annual count.
Building Depreciation = Building x Annual Depreciation rate x 3/12
Building Depreciation = $240,000 x 4% x 3/12
Building depreciation = $2,400
Equipment Depreciation = Equipment x Annual Depreciation rate x 312
Equipment Deprecaiation = $32,0000 x 10% x 3/12
Equipment Depreciation = $800
Depreciation expense = Building Depreciation + Equipment Depreciation
Depreciation expense = $2,400 + $800
Depreciation expense = $3,200
RevenuesUnearned revenue of $7,600 is recognize by August 31. This amount will be deducted (debited) the unearned revenue account and credited to the rent revenue account.
Another revenue will be recorded by $1,600 from the rent payments on credit and as cash on debit.
Salaries and Wages$750 of unpaid salaries and wages has been accrued as salaries and wages expense on debit and recorded as salaries and wages payable on credit.
MortgagePlease note that the mortgage was submitted since January 1, 2022. Hence, by August 31, 2020 Haile has to accrued 8 months of interest expense related to this mortgage. The amount of Haile's interest expense would be:
Interest expense = Mortgage x Interest rate x 8/12
Interest expense = $100,000 x 8% x 8/12
Interest expense = $53,333.33
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Complete Question:
Haile Resort opened for business on June 1 with eight air conditioned units. Its trial
balance on August 31 is as follows.
Haile Resort
Trial Balance
August 31, 2022
Debit Credit
Cash Br. 39,200
Prepaid Insurance 9,000
Supplies 5,200
Land 40,000
Buildings 240,000
Equipment 32,000
Accounts Payable Br. 9,000
Unearned Rent Revenue 9,200
Mortgage Payable 100,000
Share Capital—Ordinary 200,000
Retained Earnings 0
Dividends 10,000
Rent Revenue 172,400
Salaries and Wages Expense 89,600
Utilities Expense 18,400
Maintenance and Repairs Expense 7,200
Br.490,600 Br.490,600
Other data:
1. The balance in prepaid insurance is a 1-year premium paid on June 1, 2022.
2. An inventory count on August 31 shows Br. 1,300 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%).
4. Unearned rent revenue of Br. 7,600 should be recognized as revenue prior
to August 31.
5. Salaries and wages of Br. 750 were unpaid at August 31.
6. Rentals of Br.1,600 were due from tenants at August 31.
7. The mortgage note is dated 1/1/2022. The mortgage interest rate is 8% per
year.
Instructions
b. Prepare an adjusted trial balance on August 31.
Double entry Received commission by Cheque
Answer:
congratulations sirr
Explanation:
ask any question or queries not other things
sorry if this was hurtful to you
The oligopoly model that is most appropriate when one large firm usually takes the lead in setting price is the __________ model.A) CournotB) StackelbergC) game theoryD) prisonerʹs dilemma
The oligopoly model that is most appropriate when one large firm usually takes the lead in setting price is the Stackelberg model. When one large firm takes the lead in setting prices, the Stackelberg model is the most appropriate oligopoly model to analyze the market structure and behavior.
In the Stackelberg model:
1. There are a few dominant firms in the market, with one large firm taking the role of a leader and the others as followers.
2. The leader firm sets the price, and the follower firms adjust their output and pricing strategies accordingly.
3. The leader firm has an advantage in terms of market power and information, allowing it to make better decisions and potentially earn higher profits.
4. The model assumes that the follower firms have perfect information about the leader's actions and react accordingly to maximize their own profits.
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How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Delectable, Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000; Allowance for Doubtful Accounts of $50 credit balance; and credit sales of $100,000. Based on an aging of its receivable, management estimates that $1,000 of receivables will be uncollectible. Delectable's financial statements will show ______. (Select all that apply.)
Answer:
Allowance for Doubtful Accounts of $1000 credit balance and Bad Debt Expense of $950 ($1000- 50 (unadjusted))
Explanation:
Delectable, Inc.'s unadjusted trial balance contains $10,000 in accounts receivable, $50 in allowance for doubtful accounts, and $100,000 in credit sales. Management predicts that $1,000 of receivables will be uncollectible due to aging. The financial statements for Delectable will indicate
Allowance for Doubtful Accounts of $1000 Bad Debt Expense of $950 Thus, option (b) and (e) is correct. What is Management?The term “management” refers to the act of managing. The management of the business activities. Management is the basis of art, science, and the profession. Management are they manage the organization. Management are based of the different functions are the step by step.
According to the management credit balance of $1000 and the Allowance for Doubtful Accounts of (1000-50)
Journal Entry Debit Credit
Bad Debts expenses 950
Allowance for Doubtful Accounts 950
Therefore, option (b) and (e) is correct.
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I am confused here. Help me, tomorrow is my exam. Is tailoring a secondary activity or tertiary? Bcoz a tailor also makes suits etc and also fixes them. For example if my coat has a cut, the tailor will repair it.
Hello student
Answer:
Tailor is tertiary activity of economy
Explanation:
because it makes service not manufacturing goods and items.
True or False: Nearly all major companies in the United States use the direct method to prepare the statement of cash flows.
Nearly all major companies in the United States use the direct method to prepare the statement of cash flows is false.
While the direct method is one of the two acceptable methods for preparing the statement of cash flows according to Generally Accepted Accounting Principles (GAAP) in the United States, it is not the most commonly used method. The indirect method is more commonly used, especially by larger companies.
Many accountants select the oblique technique because it is easy to put together the coins waft assertion the use of records from the opposite not unusualplace economic statements, the earnings assertion and stability sheet.The coins waft assertion may be organized the use of both the direct or oblique technique. The coins waft from financing and making an investment activities' sections may be equal beneath Neath each the oblique and direct technique.
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The data show the
number of railroad crossing accidents for the 50 states
of the United States for a specific year. Construct a
histogram, frequency polygon, and ogive for the data.
Comment on the skewness of the distribution. (The data
in this exercise will be used for Exercise 14 in this
section.)
Class limits Frequency
1–43 24
44–86 17
87–129 3
130–172 4
173–215 1
216–258 0
259–301 0
302–344 1
Answer:
I hope this helps
Explanation:
216-258 0
NEED HELP ASAP 10 POINTS
The production, purchase, and sale of goods in a world-wide market is known as the _____.
Answer:
I think it's global economy
A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as well as institutional investors. Group of answer choices True False
Answer:
True
Explanation:
A publicly owned corporation is a company is a company owned by shareholders. This type of company's shares is freely traded on a stock exchange
Characteristics of A publicly owned corporation
Limited liability. the liability of owners are limited to the amount investedCentral management. The company is manged by board of directors and managers and not the shareholdersthe company is a legal entity.explain internal economics and internal diseconomics
Answer:
These are the cost advantage that an organization obtains due to their scales of operation . Diseconomies are the cost disadvantages that firms build up due to an increase in firm size or output . This result in the production of goods and services at increased per unit costs . Economics of scale leads to cost reduction .
Explanation:
Thaats what upp
Answer:
These occur when mass producing a good results in lower average cost. Economies of scale occur within an firm (internal) or within an industry (external). Internal Economies of Scale - As a business grows in scale, its costs will fall due to internal economies of scale.
Explanation:
what is criminal justice
Answer:
Criminal justice is the delivery of justice to those who have committed crimes.
To achieve the maximum benefit of a new erp system, tasty baking implemented an enterprise system by?
To achieve the maximum benefit of a new erp system, tasty baking implemented an enterprise system by customizing less than 5 percent of the enterprise system processes.
What is enterprise system?This refers to an information system, which caters for a wide range of data or information, so that a business or an organization can effectively manage their operations.
One of the importance of enterprise systems is that it ultimately reduce the cost of running a business. Here, the company will have more of its budget free to increase customer service capabilities or invest in other assets that can improve the customer experience.
In other words, they are large complex computing systems which handle large volumes of data and enable organizations to integrate and coordinate their business activities.Enterprise system is a cross- functional information system that provides organization-wide coordination and integration of the key business processes. Enterprise system helps in planning the resources of an organization.Learn more about enterprise system here: https://brainly.com/question/1917506
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Job value may include all the following EXCEPT: ____. and/or, or i (minimum wage).
its value in the external market
external market rates
its relationship to some other set of rates that have been agreed upon through collective bargaining
its relationship to government legislation its relationship to a set of rates that have been agreed upon through a negotiation process
The correct option is "i (minimum wage)". Job value may include all the other options listed:
- Its value in the external market: The value of a job can be determined by market forces, such as supply and demand for labor in the external market.
- External market rates: Job value can be influenced by prevailing rates in the external market for similar jobs.
- Its relationship to some other set of rates that have been agreed upon through collective bargaining: In unionized environments, job value may be determined through collective bargaining processes, where rates and compensation structures are negotiated.
- Its relationship to government legislation: Government legislation can set minimum wage standards and regulations that impact job value.
- Its relationship to a set of rates that have been agreed upon through a negotiation process: Job value can be determined through internal negotiation processes within organizations, where rates and compensation structures are agreed upon.
However, "i (minimum wage)" is incorrect because the minimum wage refers to a specific mandated wage floor set by the government and is not typically considered as part of job value, but rather as a legal minimum standard.
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After the trial balance is prepared, the business owner can prepare the financial statements. List and discuss the purpose of each financial statement, the order in which the financial statements are prepared, and the information included in each financial statement (information also in Chapter 1, illustration 1.9). In addition, consider the fact that many people feel that financial statements should be expanded beyond the traditional components (income statement, statement of owner's equity, statement of cash flows and balance sheet). Should financial statements be expanded to include a company's ecological and social performance?
The main financial statements are the income statement, statement of owner's equity, balance sheet, and statement of cash flows. Expanding them to include ecological and social performance is debated but offers a comprehensive view of impact and sustainability.
The traditional order in which financial statements are prepared is as follows:
1. Income Statement: It shows the revenue, expenses, and resulting net income or net loss over a specific period. The purpose is to determine the profitability of the business.
2. Statement of Owner's Equity: It summarizes the changes in the owner's equity over a specific period, including investments, net income, and withdrawals. The purpose is to show the changes in the owner's investment in the business.
3. Balance Sheet: It presents the financial position of the business at a specific point in time, including assets, liabilities, and owner's equity. The purpose is to provide a snapshot of the company's financial health.
4. Statement of Cash Flows: It reports the inflows and outflows of cash from operating, investing, and financing activities over a specific period. The purpose is to assess the company's cash flow and its ability to generate and utilize cash.
Expanding financial statements to include ecological and social performance is a matter of debate. Some argue that it provides a more comprehensive view of a company's impact and sustainability. Including metrics related to environmental and social aspects can reflect a company's commitment to responsible business practices. However, challenges exist in determining and standardizing such metrics. Companies interested in demonstrating their sustainability efforts may opt for separate sustainability reports alongside financial statements to provide a more holistic view of their performance. Ultimately, the decision to expand financial statements depends on regulatory requirements, stakeholder expectations, and the company's commitment to transparency and accountability.
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what is Galileo Galilei's scientific method?
Answer:
Galileo devised a method that exhibits some provocative similarities to, and differences from, a Rasch approach to instrument design: Viewed as a whole, Galileo's method then can be analyzed into three steps, intuition or resolution, demonstration, and experiment; using in each case his own favorite terms.
In deciding whether to start their business, the founders of Netflix needed to determine if there were enough people interested in renting their DVDs through the Internet to make their investment worth the time and effort. They needed to determine the ________ of the venture. a.expediency
b.feasibility
c.practicality
d.viability
As the founders needed to determine if there were enough people interested in renting their DVDs through the Internet to make their investment worth the time and effort. They needed to determine the feasibility of the venture.
What does a venture feasibility means?Venture feasibility refers to the assessment of the viability and potential success of a new business or project before investing time and resources into it. It involves analyzing various factors, such as market demand, competition, financial projections, available resources, legal and regulatory requirements, and potential risks and challenges.
The purpose of venture feasibility is to determine whether a proposed business idea is worth pursuing and whether it has the potential to achieve its goals and objectives. A thorough feasibility analysis can help entrepreneurs and investors make informed decisions and avoid costly mistakes.
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Supply chain analysis of Coca-Cola in Vietnam. And draw lessons for other bottled water companies.
Answer:
Coca Cola follows very stringent supply chain. It is one of leading beverage brand around the world.
Explanation:
Supply chain analysis is a process of evaluating different stages of supply chain from procurement of raw material to final delivery of finished goods. There are three different strategies for supply chain management, Strategic, Tactical and Operational. Coca Cola follows strategic supply chain management. McDonald's is Coca cola's largest customer and these two global companies maintains symbiotic relationship.