Consider the role of discount rates in problems in solving long time horizons such as climate change. Suppose that a particular emissions abatement strategy would result in a $500 billions reduction in damages 50 years into the future. How would the maximum amount spent now to eliminate those damages change if the discount rate is 2%, rather than 10%?
Answers
The maximum amount that can be spent now to eliminate future damages increases from $6.34 billion at a 10% discount rate to $15.77 billion at a 2% discount rate.
The discount rate is a measure of how much less people value future costs and benefits compared to immediate ones. A higher discount rate means people value future costs and benefits less, whereas a lower discount rate means they value future costs and benefits more.
In this case, if the emissions abatement strategy would result in a $500 billion reduction in damages 50 years into the future, we need to calculate how much we should spend now to eliminate those damages, given different discount rates.
Assuming a constant discount rate, the maximum amount that can be spent now to eliminate the future damages is given by the present value of the damages:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the discount rate, and n is the number of years into the future.
With a 10% discount rate, the present value of the damages is:
PV = 500 / (1 + 0.1)⁵⁰ = $6.34 billion
Therefore, we should spend no more than $6.34 billion now to eliminate those damages.
With a 2% discount rate, the present value of the damages is:
PV = 500 / (1 + 0.02)⁵⁰ = $15.77 billion
Therefore, we can spend up to $15.77 billion now to eliminate those damages.
So, the maximum amount that can be spent now to eliminate the future damages increases from $6.34 billion at a 10% discount rate to $15.77 billion at a 2% discount rate.
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Related Questions
what life? and how are you
Answers
Answer:
life is evrthing on earth that is living or requires certain things to live and If you want a lie im awsome.
which of the following is most likely to be considered a discretionary cash flow? select one. question 5 options: a. food b. tuition c. netflix subscription d. auto loan
Answers
The following is most likely to be considered a discretionary cash flow Netflix subscription.
In the monetary world, advisors and planners are compensated in certainly considered one among primary ways: via way of means of incomes flat prices or via way of means of incomes commissions. A fee-best monetary consultant is paid a fixed fee for the offerings they offer as opposed to getting paid via way of means of fee on the goods they promote or trade.Plan profits and fees. Which first-class explains the distinction among short-time period and long-time period making plans Short-time period making plans looks after ordinary fees withinside the close to future even as long-time period making plans entails saving for massive purchases in addition withinside the future.
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Shakeria wants to start investing. She decides to put $1,000 in her investment account and then decides to add $5,200 (which is one hundred dollars per week) into the account at the end of each year. She expects her investments to earn an average of 9% over the next 30 years. How much will she have at the end of the 30 years?
A. $689,364.25
B. $254,369.25
C. $674,689.33
D. $356,543.89
E. $701,055.34
F. $722,066.88
Answers
Question on Audit & Assurance
Question 1)
The firm of Bureck & Co, where you work as an audit senior, is a Chartered Certified Accountants. After the senior on the engagement falls ill, you are temporarily appointed as audit senior to the audit of Sultana Co, a scaffolding supplier to the construction industry. Currently, you and the junior members of your audit team are analysing the audit files and discussing the audit as it nears completion for the year ending 30 September 2021 for Sultana Co. The draught financial accounts of Sultana Co. show revenues of £12.5 million, a net profit of £400,000, and total assets of £78 million.
After going through the audit files, you've discovered the following information.
Cherry Co, a major customer with whom Sultana Co has several substantial contracts, declared bankruptcy after the end of the year. Efforts to wind down the business have already begun. There are administrators who believe that the corporation can pay about 25 percent of the debt to Sultana Co. This customer has a trade receivable of £300,000 on Sultana Co's financial statement. The audit's management has also been questioned by a member of the audit team who is a junior. The following is what the junior said.
‘Prior to being assigned to the audit team of Sultana Co., I had only worked on two other projects' Despite my expectations, there was no pre-audit meeting where the partner and other senior auditors would discuss the audit. Another problem is that a senior audit manager has been in charge while the audit manager has been on vacation for three weeks and has been replaced. As a result of this, the senior could not always be contacted.'
"I was tasked with auditing the goodwill resulting from an acquisition made during the year." I also participated in the inventory audit and count, which was quite complicated because Sultana Co has a substantial amount of ongoing projects. I endeavoured to be as helpful as possible during the count and assisted the client's staff in counting a portion of the raw materials. As I had participated in the inventory count, the audit senior requested that I question the finance director about the adequacy of the provision against inventory, which the senior felt was grossly understated.
'Finally, we discovered that we were out of time to complete our audit procedures. As a means of saving time, the audit senior advised that we reduce the sample sizes used in our tests. When conducting audit sampling, he also suggested that we select items that would be easy when carrying out audit sampling'
Required:
a) comment on the issues to be taken into consideration as well as an explanation of the audit evidence you can expect to find when reviewing Cherry Co's trade receivable file is required. (6marks)
(b) Analyze the issues of the audit junior on the audit management of Sultana Co. (14 marks)
Answers
a) The issues include the impact of Cherry Co's bankruptcy, recoverability of the outstanding amount, and the need for impairment provision
b) While concerns involve the absence of a pre-audit meeting, challenges in contacting the senior audit manager, limited experience of the junior, and suggestions to reduce sample sizes and select easy items during audit sampling.
How should the review of Cherry Co's trade receivable file be approached considering bankruptcy, recovery rate, and provision?Furthermore, what concerns are raised by the audit junior regarding the audit management of Sultana Co?When reviewing Cherry Co's trade receivable file, several factors need to be taken into consideration.
Firstly, the bankruptcy of Cherry Co raises concerns about the collectability of the trade receivable. The estimated recovery rate of 25 percent provided by the administrators should be assessed for reasonableness and its impact on the financial statements evaluated.
Secondly, the adequacy of the provision for doubtful debts needs to be examined. Given the uncertain nature of the receivable, it is important to assess whether the provision reflects the potential credit losses accurately.
The audit team should review the supporting documentation, correspondence with Cherry Co, and assess any subsequent events that may affect the collectability of the debt. This review will provide the necessary audit evidence to evaluate the recoverability of the trade receivable.
Additionally, discussions with the administrators can provide valuable information regarding the financial status of Cherry Co and the likelihood of recovery. The auditor may need to consult legal opinions and expert advice to evaluate the recoverability of the debt accurately. Based on this assessment, appropriate adjustments and provisions should be made to reflect the potential loss arising from Cherry Co's bankruptcy.
The concerns raised by the audit junior regarding the audit management of Sultana Co highlight several issues that need to be analyzed. Firstly, the absence of a pre-audit meeting where the partner and senior auditors discuss the audit raises questions about the adequacy of planning and coordination.
This lack of communication can hinder the efficient execution of the audit and compromise the quality of the work performed. Secondly, the prolonged absence of the audit manager and the challenges in contacting the senior audit manager raise concerns about the availability and accessibility of key personnel for guidance and supervision during the audit.
In analyzing these issues, it is essential to assess whether proper planning, supervision, and delegation of responsibilities were in place, and whether the assigned personnel had the necessary competence and experience.
Additionally, it is crucial to evaluate the impact of these issues on the audit's overall effectiveness, the reliability of the audit evidence obtained, and the accuracy of the financial statements.
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what is 4/8 = ??????????????????????
Answers
Answer:
4/8 is equivalent to 1/2
Explanation:
Hope it helps a lot :]
Answer:
4 divided by eight? if this is the question then the answer is 1/2
Explanation:
let me know if that was what you were asking
Park is always willing to give up 1 orange for 3 tangerines.
(1) What is the size of MRSTO (marginal rate of substituting tangerine for orange) for Park?
(2) What is the economic meaning of MRSTO?
(3) Suppose that the price of one orange is $1 and the price of one tangerine is $0.25. Which fruit should Park buy between orange and tangerine? Use the economic meaning of MRSTO to justify your answer.
Answers
The marginal rate of substitution of tangerines for oranges (MRSTO) for Park is 3, the economic meaning of MRSTO is the amount of one good an individual is willing to give up for an additional unit of another good while keeping the same level of satisfaction, thus Park should buy tangerine.
(1) Park is willing to give up 1 orange for 3 tangerines, which means that his MRSTO is 3.
(2) The economic satisfaction he gets from 3 tangerines is as much as the satisfaction he gets from 1 orange. If the price of one orange is $1 and the price of one tangerine is $0.25, then the relative price of orange to tangerine is 4:1.
(3) If the relative price of orange to tangerine were less than 3:1, then Park would prefer to buy tangerines instead.
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Hourly Wages
1. Hourly Rate $8.40
Hours Worked 40 hours
Find straight-time pay.
Answers
Answer:
336
Explanation:
Multiply 8.4 times 40 and you get 336.
I hope this helped.
what does these symbols mean on a measuring tape' &"
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2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?
Answers
Answer:
Davidson describes two philosophies that are represented each by the Republican Party and by the Democratic Party.
Republicans believe, according to Davidson, that the economy works best when the state keeps its hands off it. Republicans view a free market economy without government intervention as essentially a perfect machine that can coordinate the interests of vastly different goups of people (this is the concept of the invisible hand, developed by Adam Smith).
The Democrats, on the other hand, while seeing Capitalism as the most efficient economic system, believe that the capitalist economy needs to be regulated by the state, because otherwise, a free market generates undesirable effects like externalities and economic inequality.
According to Davidson, the republicans and the democrats as philosophies are two fundamentally different economic philosophies that impact the debt crisis facing the US. I agree more with the republican side of things, life can't always come with an aim of everything being "equal" and "fair".
what is the pv of a 9-year annuity due (payments at beginning of period, aka annuity in advance) of $912 if the required return is 6.2%
Answers
the pv of a 9-year annuity due (payments at beginning of period, aka annuity in advance) of $912 if the required return is 6.2% is $78000.
When one party (such as a person or business) freely offers money, its equivalent, or other assets to another in return for services provided, things obtained, or the fulfillment of a legal duty, that transaction is referred to as a payment. The party receiving the payment is referred to as the payee, whilst the one making the payment is frequently referred to as the payer.Numerous methods of payment exist, including:bartering is the exchange of one good or service for another, or the transfer of anything of value, such as stock, via a check, a debit, credit, or bank transfer, whether by mobile payments or another way.
In most cases, payees are free to select the preferred payment method;
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Employees tend to stay with one company for their entire careers.
Please select the best answer from the choices provided
OTrue
OFalse
Answers
Answer:The answer would be true, unless the employee had to leave for personal reasons
Explanation:
What factor reflects the ‘cost of money’? The ‘cost of money’ is reflected in the
Answers
What is the meaning and there difination of 3 p's?
Answers
If you want your business to succeed, you must prioritize three key factors: people, process, and product. The three Ps, as they're commonly referred to, provide the best return on investment because they serve as the foundation for everything your company does.
The three Ps stand for People, Planet, and Profit, also known as the triple bottom line. The role of sustainability is to protect and maximize the benefits of the three Ps. People are taken care of by green programs. The term refers to a classification that began with the four Ps: product, price, placement, and promotion and has since grown to include Product, Price, Promotion, Place, People, Packaging, and Process.
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Provides a means to clearly show economic relationships in two-dimensional space. Economic analysis is often concerned with two variables confined to the upper-right (northeast) quadrant of the coordinate number system.
Answers
Answer:
Graphs
Explanation:
A graph is a pictorial representation that shows a relationship between two or more variables. In the context of economics, it represents the clearly relationship in two-dimensional space. Also the economic analysis would be concerned with respect to the two variables.
Therefore as per the given situation, the graph should be the answer
Hence, the same is to be considered
A graph is a representation of a relationship between two or more variables in a visual format. It illustrates the clear relationship in two-dimensional coordinate numbers in the context of economics.
What is the coordinate number?
In a complex or coordination compound or a crystal, the coordination number, also known as Ligacy, is the number of atoms, ions, or molecules that a central atom or ion has as its nearest neighbors.
Thus, graphic representation shows the relationships between variables.
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2) Moonlight Company wrote off the account of one of its customers, X, in 2018 for $500. On January 21, 2019, X unexpectedly repaid his account in full. The company uses the direct write-off method to account for uncollectible receivables. Journalize the entries required for Moonlight Company on January 21, 2019
Answers
Answer:
A journal entry was carried out for Moonlight Company for January 21, 2019, and is shown below in the explanation section
Explanation:
Solution
Given that:
Moonlight Company Journal Entries on January 21, 2019
JOURNAL ENTRY
Date Account name Debit Credit
Jan. 21, 2019 Cash 500
(Income statement -Bad debts recovered) 500
(record the bad debts recovery from customer X)
Help me ITs EASY TAKE A LOOK
Answers
Answer:
a) Employees (Staff)
Chief Executive officer (Owner)
b) Government
Share holders
The operating cycle will increase with all the following changes except
a.The cost of good sold increase
b.The level of account receivable increase
c. The level of inventory increased
d.all
Answers
The operating cycle is the time period required for a company to convert its resources, such as cash, into inventory, sell the inventory to customers, and collect payment from customers.
An increase in the operating cycle indicates that the company is taking longer to complete this process. In this case, the operating cycle will increase with changes in options b, c, and d because they all involve an increase in the time required to collect payment from customers.
However, the operating cycle will not increase with an increase in the cost of goods sold because this does not affect the time required for the company to convert resources into inventory, sell the inventory, and collect payment from customers.
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On december 1, 2017, cone company issued its 10%, $2 million face value bonds for $2.3 million, plus accrued interest. interest is payable on november 1 and may 1. on december 31, 2019, the book value of the bonds, inclusive of the unamortized premium, was $2.1 million. on july 1, 2020, cone reacquired the bonds at 98 plus accrued interest. cone appropriately uses the straight-line method for the amortization because the results do not materially differ from those of the effective interest method.
required:
prepare a schedule to compute the gain or loss on this redemption of debt.
Answers
Cone Company redeemed its bonds on July 1, 2020, at 98 plus accrued interest. The schedule shows that the carrying value of the bonds at the time of redemption was $2.135 million, resulting in a gain of $15,000 for Cone Company.
The bond issue price was $2.3 million, which is $300,000 over the face value of $2 million. The premium of $300,000 was amortized over the life of the bonds.
From December 1, 2017, to June 30, 2020, the bonds were outstanding for 31 months, or 2.58 years.
The annual amortization of the premium is
$300,000 / 20 = $15,000.
The unamortized premium at the redemption date was
$15,000 x 2.5 years = $37,500.
The accrued interest on the bonds was
$50,000 ($2 million x 0.10 x 6/12).
Therefore, the total cost of the redemption was
$2.135 million ($2.1 million + $37,500 + $50,000).
The gain on redemption is
$15,000 ($2.135 million - $2.1 million).
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which of the following is not a type of factor that drives stock prices, according to your text? a. firm-specific factors b. market-related factors c. economic factors d. all of these choices are factors that affect stock prices.
Answers
According to the text, (D) all of the choices given - firm-specific factors, market-related factors, and economic factors - are types of factors that can drive stock prices.
Therefore, the correct answer to the question "Which of the following is not a type of factor that drives stock prices, according to your text?" would be d. "all of these choices are factors that affect stock prices."
It is important for investors and traders to consider all of these factors when analyzing stock prices and making investment decisions.
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When a site is unsafe, it means a. Your personal information may be used in ways you do not want c. Permission to use that site at school is always allowed b. That site is okay to visit often d. All of the above Please select the best answer from the choices provided A B C D
Answers
Answer:A, Your personal information may be used in ways you do not want
Explanation:
If it is a unsafe site than there for your personal information can go places you do not want them to.
When a site is unsafe, it means your personal information may be used in ways you do not want. Thus, option 'A' is the correct option.
What does it mean when a website is unsafe?External connections to websites with phishing, malware, or unwanted software are known as unsafe domains. Phishing is when a website imitates another one in an effort to fool visitors into divulging personal or financial information. When you visit an insecure website, you run the risk of having your personal information compromised and/or having malicious malware installed on your system.
Additionally, you can fall prey to a phishing attack, or someone else might watch your activity or use your resources for their own gain. If the content you're seeking to view is harmful or misleading, a warning will appear. These websites are frequently referred to as phishing or virus sites. If you clicked on a phishing link, the first thing you should do is immediately unplug your device from the internet.
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A perpetual bond with a par value of $1,000.00 and a coupon rate of 9.50% (semiannual coupon) has a current market value of $900.00. What is its nominal yield to maturity?
a. 11.39%
b. 10.80%
c. 9.50%
d. 9.60%
e. 10.56%
Answers
The nominal yield to maturity of the perpetual bond is calculated as 10.56%. This is obtained by dividing the annual coupon payment ($95) by the current market value of the bond ($900) and expressing the result as a percentage. The correct answer is E).
Here's the step-by-step calculation to determine the nominal yield to maturity of the perpetual bond
Calculate the annual coupon payment: The coupon rate is 9.50%, and the par value of the bond is $1,000. So, the annual coupon payment is $1,000 * 9.50% = $95.
Determine the current market value of the bond: The given information states that the bond has a current market value of $900.
Calculate the nominal yield to maturity: Divide the annual coupon payment by the current market value of the bond. In this case, it is $95 / $900 = 0.1056.
Convert the yield to maturity to a percentage: Multiply the result by 100 to express it as a percentage. Thus, 0.1056 * 100 = 10.56%.
Therefore, the nominal yield to maturity of the perpetual bond is 10.56%, which corresponds to option e.
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Hemingway Corporation is considering expanding its operations to boost its income, but before making a final decision, it has asked you to calculate the corporate tax consequences of its decision. Currently, Hemingway generates before-tax yearly income of $200,000 and has no debt outstanding. Expanding operations would allow Hemingway to increase before-tax yearly income to $350,000. Hemingway can use either cash reserves or debt to finance its expansion. If Hemingway uses debt, it will have yearly interest expense of $70,000
Create a spreadsheet to conduct a tax analysis for Hemingway Corporation and determine the following:
a. What is Hemingway’s current annual corporate tax liability?
b. What is Hemingway’s current average tax rate?
c. If Hemingway finances its expansion using cash reserves, what will be its new corporate tax liability and average tax rate?
d. If Hemingway finances its expansion using debt, what will be its new corporate tax liability and average tax rate?
e. What would you recommend that the firm do? Why? Principles of Managerial Finance 15th Ed Zutter Smart Chapter 2
Answers
a) Modern-day annual corporate tax legal responsibility = $200000 * 21% = $42000
b) Present day average tax price = 42000/200000 = 21%
c) Financing through coins reserves, new tax legal responsibility = 350000 * 21% = $73500
Modern-day average tax fee = 73500 / 350000 = 21%
d) Financing through debt, new tax liability = (350000-70000) * 21% = $58800
Cutting-edge common tax fee = 58800 / 280000 = 21%
e) Residual quantity on financing through cash reserves = 350000 – 73500 = 276500
Residual quantity on financing via debt = (350000-70000) – 58800 = 221200
So, Financing via coins reserves is recommended being higher residual coins after tax.(assumption: cash reserves kept idle)
Corporate tax refers to the tax levied on the profits earned by corporations or businesses. The tax is usually calculated as a percentage of a company's net income, after deducting allowable expenses and other tax deductions. Corporate tax is an important source of revenue for governments around the world and is used to fund various public services and infrastructure projects.
The rate of corporate tax varies from country to country and can be influenced by a range of factors such as the size of the economy, political climate, and international trade agreements. In some countries, tax rates are relatively low in order to attract foreign investment and encourage economic growth, while in others, higher rates are imposed to fund social welfare programs and address income inequality.
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Use the data in the tables to answer the question that follows. Market Price of Output Quantity Supplied of Output Quantity Demanded of Output $5 25,000 60,000 $10 50,000 50,000 $15 75,000 40,000 $20 100,000 30,000 $25 125,000 20,000 Firm Quantity of Labor Total Product 0 0 15 100 30 190 45 265 60 325 What is the marginal revenue product of the 30th unit of labor, assuming this market is perfectly competitive in both the factor and output markets
Answers
Based on the market price, the quantity of labor, and the change in output, the marginal revenue product of the 30th unit of labor is $56.70.
How can we find the marginal revenue product?First find the marginal product of labor as:
= (Change in units produced) / Change in labor quantity
= (190 - 105) / (30 - 15)
= 5.67 units
The market price is the price at which quantity demanded is equal to quantity supplied which is $10.
The marginal revenue product is:
= Marginal product of labor x Price
= 5.67 x 10
= $56.70
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For proper operation instructions of the jointer
Answers
Answer:
Consult the manufacturer's manual or seek professional assistance for proper operation instructions of the jointer.
Explanation:
Jointers are powerful and potentially dangerous woodworking tools that require proper handling and operation to ensure safety and effectiveness. It is important to consult the manufacturer's manual for specific instructions on how to properly operate the jointer, including safety precautions, proper setup, and maintenance procedures. The manual may also provide guidance on selecting the right blades and adjusting the machine for optimal results. In addition, it may be helpful to seek professional assistance or training on how to use the jointer safely and effectively, especially if you are a beginner. This will ensure that you are using the tool properly and minimizing the risk of injury or damage to the machine. Therefore, for proper operation instructions of the jointer, it is recommended to consult the manufacturer's manual or seek professional assistance.
For proper operation instructions of the jointer Rabbeting.
Joiners are strong, possibly dangerous woodworking tools that need to be handled and used correctly to be safe and effective. For detailed instructions on how to use the jointer safely, correctly, and in terms of setup and maintenance, it is crucial to refer to the manufacturer's manual.
Choosing the best blades and tuning the machine for best results may both be covered in the manual. Additionally, especially if you are a newbie, it may be beneficial to seek out expert advice or instruction on how to use the jointer securely and successfully.
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Your question is incomplete, but most probably the full question was.
For proper operation instructions of the jointer is ______
what is an advantage of using the on-demand pricing model?
Answers
An advantage of using the on-demand pricing model is its flexibility and cost-effectiveness.
The on-demand pricing model offers several advantages to businesses. Firstly, it provides flexibility in terms of usage and cost. With on-demand pricing, businesses only pay for the resources or services they actually use, allowing them to scale their usage up or down based on their needs. This flexibility is particularly beneficial for businesses with fluctuating demands or seasonal peaks, as they can avoid the costs of maintaining excess capacity during slower periods. Secondly, on-demand pricing eliminates the need for upfront investments in hardware or infrastructure, as businesses can access services on a pay-as-you-go basis. This reduces the financial burden and risk associated with large upfront investments.
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Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses? a.The per diem rate established by the state in which they live. b.The appropriate Federal per diem amount. c.All expenses up to $25 per day. d.$75 per day. e.None of these choices are correct.
Answers
Answer:
b. The appropriate Federal per diem amount.
Explanation:
These special diem per rates for taxpayers would be used in substantiating the ordinary amount and important business expenses that are expense at the time when travelling to be done especially the special transportation industry meal and rates of incidental expenses, the deduction with respect to the incidental expenses, and the rates & high-cost localities list for the motive of the high-low substantiation method.
how many tines in earth does the sun intersect equartor
Answers
Answer:
два
Explanation:
Which of the following can we conclude when production has diseconomies of scale?
a. Average fixed cost increases as output expands.
b. Marginal cost decreases as output expands.
c. Long-run average total cost declines as output expands.
d. Long-run average total cost increases as output expands.
Answers
The correct answer is option d: Long-run average total cost increases as output expands.
When production has diseconomies of scale, we can conclude that the long-run average total cost (LRATC) increases as output expands. This means that as the level of production increases, the average cost per unit of output also increases.
Diseconomies of scale occur when the firm experiences difficulties in managing and coordinating its operations as it grows larger. Factors such as communication challenges, increased bureaucracy, inefficiencies, and diminishing returns to scale can contribute to higher costs per unit of output.
In contrast, economies of scale occur when the firm experiences cost advantages as it increases its scale of production, resulting in a decrease in LRATC.
Therefore, the correct answer is option d: Long-run average total cost increases as output expands.
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Terry transfers two assets to a partnership on the day it’s created for a 60% partnership interest worth $120,000. She contributed cash = $80,000 and equipment worth $40,000 with an adjusted basis = $16,000. What result?
a.Terry realizes and recognizes a $24,000 gain
c.Terry realizes but does not recognize a $24,000 gain
b.Terry neither realizes nor recognizes any gain
d.Terry does not realize but may elect to recognize a $24,000 gain
Answers
The result of Terry transferring two assets to a partnership on the day it’s created for a 60% partnership interest worth $120,000 with a cash contribution of $80,000 and equipment worth $40,000 with an adjusted basis of $16,000 is that Terry realizes but does not recognize a $24,000 gain.
Option C is the correct answer. Realized gain is defined as the amount that a taxpayer gains from the sale or exchange of property. When an asset is sold or exchanged for more than its adjusted basis, a realized gain occurs. Terry has contributed $40,000 in equipment with an adjusted basis of $16,000. Therefore, Terry has a $24,000 realized gain ($40,000 – $16,000). Terry does not, however, recognize the $24,000 gain.
A gain is recognized when it is included in gross income.
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under a disability income policy which provision would be payable
Answers
Under a disability income policy, the provision that would be payable is the disability benefit provision.
This provision specifies the conditions and criteria under which the insured individual is eligible to receive benefits in the event of a disability that prevents them from working or earning income.
The disability benefit provision typically outlines the definition of disability, waiting periods before benefits are payable, benefit duration, and the calculation of benefit amounts. It ensures that the insured individual receives financial support during the period of disability, helping to replace lost income and cover living expenses. The specific details of the provision may vary depending on the terms and conditions of the policy.
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