Leaders who use a directive leadership style provide specific goals and guidelines for their staff members to follow.
The directed leadership style is highly centralized and undivided, putting all power in the hands of the leader. Because they are unwilling to accept any suggestions from those beneath them, its adherents prefer giving orders and directives.
Directive leadership is one of the four leadership behaviours, which is characterized by explicitly defining your expectations and directives for your team members and ensuring that they are understood. Directive leadership, as described by the path-goal theory of leadership, may be advised when subordinates are inexperienced or unskilled at a difficult task. However, it might backfire if it's imposed on highly qualified and seasoned workers who are more than capable of completing the task.
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which of the following statements regarding the statement of cash flows is false? the statement of cash flow separates cash inflow and outflows into three major categories: operating, investing and financing the ending cash balance shown on the statement of cash flows must agree with the amount shown on the balance sheet at the end of the same period the total increase or decrease in cash shown on the statement of cash flows must agree with the bottom line (net income or net loss) reported on the income statement the statement of cash flows covers a period of time
The total cash change shown on the cash flow statement must match the bottom line (net income or net loss) shown on the income statement. The cash flow statement spans a time period, which is false.
What exactly is cash flow?Cash flow refers to the net quantity of cash and cash equivalents carried into and out of a business. Inflows and outflows are represented by money received and spent, accordingly. A company's ability to generate positive cash flows, or, more precisely, to optimize long-term free cash flow, is critical to its ability to create value for shareholders (CFC).
FCF is the cash generated by a company's normal business activities after subtracting capital expenditures (CapEx). The quantity of money that comes in and goes out of a business is referred to as its cash flow. Businesses generate revenue through sales and incur expenses. They may also earn money from interest, investments, royalties, and licensing agreements, in addition to selling products.
They may also receive income from interest, investments, royalties, and licensing agreements, as well as offer things on credit with the expectation of receiving the money owing at a later period.
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with respect to government-wide statement, which of the following statements is correct? a. general capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net position. b. gasb requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting. c. in addition to the fund-basis statement, gasb requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus. d. fiduciary activities are reported in the government-wide statements in a separate column.
The right statement with regard to the government-wide statement is (A) general capital assets should be recorded in the governmental activities column of the government-wide statement of net position rather than as assets in governmental funds.
What are general capital assets?A government's capital assets are those with initial usable life that run beyond a single reporting period. Examples include real estate, improvements to real estate, easements, buildings, improvements to buildings, machines, tools, works of art, historical artifacts, infrastructure, and other items.To identify the type of fixed asset owned and the source of the funds from which the general capital assets were obtained, general capital assets should be categorized in the appropriate account code.Since general capital assets should not be recorded as assets in governmental funds but rather should be included in the governmental activities column of the government-wide statement of net position, the right statement with regard to the government-wide statement is (A).
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a rookie quarterback is negotiating his first nfl contract. his opportunity cost is 9%. he has been offered three possible 4-year contracts. payments are guaranteed, and they would be made at the end of each year. terms of each contract are as follows:
The contract to be recommended is contract 2 with the highest present value.
How to choose a contract to recommend?
The contract with the highest present value is the contract that should be recommended. Present value is the current value of future cash flows because the current value of money is more valuable than the future value of money in the same amount. Present value can be calculated by using NPV formula.
NPV = [tex]\sum\frac{C_{n}}{(1+r)^{n}}[/tex]
Contract 1
NPV = [tex]\frac{2,500,000}{(1+0.09)^1} + \frac{2,500,000}{(1+0.09)^2} +\frac{2,500,000}{(1+0.09)^3}+\frac{2,500,000}{(1+0.09)^4}[/tex]
NPV = $ 8,099,300
Contract 2
NPV = [tex]\frac{2,000,000}{(1+0.09)^1} + \frac{3,000,000}{(1+0.09)^2} +\frac{4,000,000}{(1+0.09)^3}+\frac{5,500,000}{(1+0.09)^4}[/tex]
NPV = $ 11,344,975
Contract 3
NPV = [tex]\frac{6,000,000}{(1+0.09)^1} + \frac{1,000,000}{(1+0.09)^2} +\frac{1,000,000}{(1+0.09)^3}+\frac{1,000,000}{(1+0.09)^4}[/tex]
NPV = $ 7,826,876
Your questions is incomplete, but most probably your full question was (image attached)
Thus, the contract to be recommended is contract 2 with the highest present value.
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a new industry that helped to turn the gulf coast into the home of the world's largest petrochemical industry was .
Petrochemical industry mainly comprise of synthetic fibre / yarn, polymers, Synthetic Rubber (elastomers), Synthetic detergent intermediates, performance plastics and plastic processing industry
What does petrochemical industry do?The synthetic fiber/yarn, polymers, synthetic rubber (elastomers), synthetic detergent intermediates, performance plastics, and plastic processing industries make up the majority of the petrochemical sector. Nylon, acrylics, polyurethane, and polypropylene are some examples of synthetic fibres.Petrochemical products include such items as plastics, soaps and detergents, solvents, drugs, fertilizers, pesticides, explosives, synthetic fibers and rubbers, paints, epoxy resins, and flooring and insulating materials.After a protracted process of refinement in oil refineries, crude oil is the fundamental component used to generate all petrochemical and petroleum components.To learn more about petrochemical industry refer
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bill needs to organize information for his report and he has been told to follow the direct approach. bill should
Bill needs to organize information for his report and he has been told to follow the direct approach. Bill should be List the recommendations at the start of the study, followed by the findings that supported those recommendations.
These days, you can probably pay all of your bill with a click of the mouse online. The best thing is that it is straightforward and can provide time and financial savings. Just take care to avoid the usual risks associated with online bill payment. One method of avoiding missed payments and late fees is to maintain organization.
Easiest way for managing bills are-
Create a master bill calendar and master bill list with due dates as the first step.
The second step is to organize your bills by gathering them in one place.
Establish a regular time to pay your bills in Step 3.
In step 4 Use electronic payment options wherever applicable.
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mary and david are married, and bob is their only son. if mary purchases a life insurance policy that pays benefits to bob if david dies, mary is considered: a. a policyholder. b. an insured. c. both an insured and a beneficiary. d. a beneficiary.
The death benefit is paid in accordance with the Uniform Simultaneous Death Act as though the primary beneficiary passed away first.
Who receives the death benefit of 255?Benefits are available to parents who received at least half of their child's support and are 62 years of age or older. Only a spouse or child who satisfies specific qualifications will be given a one-time payment of $255. Within two years of the date of death, survivors must submit an application for this payment. Benefit payments are made without restrictions or requirements. If necessary, you can take the lump sum and use it to cover living expenses. However, you can also use it for any other reason, such as saving for education, retirement, or even a trip. A life insurance policy, annuity, or pension payment made to the recipient upon the death of the insured or annuitant is known as a death benefit. for all time
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although average salaries for teachers in georgia are $3,000 less than the salaries for teachers in hawaii, based on the cost of living index, teachers in georgia rank 4th in the nation compared to hawaii (which ranks 50th). what might cause this to happen?
As technology changes, job opportunities change.
What is technology?
It is sometimes said that technology is the changing and manipulating of the human environment. Technology is the application of scientific knowledge to the practical goals of human life.What is technology, for instance?
Technology is the means through which we put scientific knowledge to use in real-world situations. In addition to machines (such as computers), it also involves techniques and processes (like the way we produce computer chips). Even though it would seem like the majority of modern technology is purely electronic, that isn't the case.Learn more about technology
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a machine costs php 400,000 with a salvage value of php 200,000. life of it is six years. in the first year, 4000 hours. in the second year, 6000 hours and 8000 hours on the third year. the expected flow of the machine is 38000 hours in six years. what is the depreciation at the end of the second year?
Depreciation per hour 11.84
Cost per book.The value a company assigns to its books or accounts, as shown in its financial statements, is referred to as its book value.It is theoretically what investors would receive if all of the company's assets were sold and all of its debts and obligations were paid.
How does book value compare to market value?
The amount of money shareholders would receive if assets were liquidated and liabilities were paid off is known as a company's book value.Based on the current stock price and the number of outstanding shares, the market value of a company is its value.
How much should a book be worth?
For value investors, a P/B ratio of less than 1.0 typically indicates a stock that may be undervalued.However, stocks with a P/B value below 3.0 may serve as a standard for value investors.
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when production problems arise and decisions need to be made, terry believes in getting his staff involved. he presents the issues and seeks a consensus in how to best handle the problem from his staff. what type of decision-making style does terry use?
Terry involves his staff in seeking consensus and handling the problem that arises in the production, he uses a facilitative decision-making style.
The facilitative decision-making style is a process in which all members are involved in tackling problems and making decisions that are satisfied by all. In this, each member including the leader has an equal share and voice in the decision-making process for the organization. This led to better solutions and an increment in team spirit. Using consensus, new ideas can be shared by other members and may end up in making better decision-making than what an organization can have without consensus.
Terry believes in getting his staff involved in the decision-making process in solving problems of production using a facilitative decision-making style.
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what are three characteristics of missionary salespeople? (check all that apply.) multiple select question. they help intermediaries train their salespeople. they develop goodwill and stimulate demand. they have no direct customer contact. they work for producers. they typically work at a customer checkout counter.
They develop goodwill and stimulate demand missionary salespeople.
What is a missionary salesperson?When a missionary salesperson contacts potential customers, even if they are calling on individuals, the interaction is business to business. For instance, a pharmaceutical salesperson might contact a doctor to give the doctor clinical details on the efficacy of a medicine. The medicine salesman hopes the doctor will write a prescription for it. The drug is actually bought by patients, not by doctors. Similar to this, sales representatives call your lecturers and urge them to use particular textbooks. However, the decision to actually purchase the books rests with you, the student.A missionary salesperson is also referred to as a Detailer. In this type of selling, the salesperson's responsibility is to inform a person who has the ability to influence others to purchase a product rather than to make a direct sale to that person.
Hence, They develop goodwill and stimulate demand missionary salespeople.
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A bank loans greg’s ice cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is.
A liability for Greg's Ice Cream and an asset for the bank. The credit builds the cash supply.
What are a bank's assets and liabilities?
Cash, government securities, and interest-bearing loans (such as mortgages, letters of credit, and inter-bank loans) make up the asset portion of a bank's capital. Loan-loss reserves and any debt a bank owes are included in the liabilities section of its capital.
What are a bank's liabilities?
Deposits and capital, which includes cash reserves and frequently subordinated debt, are the bank's primary liabilities. The latter can come from either domestic or international sources (such as private individuals, banks, and even governments).
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Britton is starting a new internet business by himself. Which of the following business organization formats will he most likely use to start the business? A) Sole proprietorship B) Limited partnership C) Limited liability partnership D) Corporation E) Limited liability company
Britton is starting a new internet business by himself. A) Sole proprietorship business organization formats will he most likely use to start the business
What is Sole proprietorship?
A sole proprietorship is a type of business that is owned and operated by one person and in which there is no legal separation between the owner and the business entity. It is also referred to as a lone tradership, individual entrepreneurship, or proprietorship. A sole proprietor may hire staff members and does not always work alone.
A person who runs an unincorporated business alone is known as a sole proprietor. However, if you want to classify a domestic limited liability company (LLC) as a corporation and you are the only member, you are not a sole owner.
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You contributed $4,000 to your roth ira this year. If you are in the 15% marginal tax bracket, what will be the tax benefit you receive this year from your contribution?.
The tax deduction that I will receive from this contribution is $600.
What is tax deduction?Tax deductions are often the result of expenses, particularly those incurred to generate more revenue, and they represent a decrease of income that is subject to taxation. Tax incentives include exemptions, credits, and deductions, as well as other things. Deductions and exemptions both lower taxable income, whereas credits also lower tax. This is the distinction between the three. Deductions frequently come with restrictions, including the requirement that they only be used for costs incurred to generate immediate advantages. It may be necessary to capitalise assets that will provide future value, however there are several exceptions. For instance, interest on student loan balances is deductible. Some tax systems allow for tax deductions for goods that powerful parties want people to buy.
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a change in acquisition, maintenance and operating costs affect the demand curve by shifting it left or right depending on whether the costs go up or down.
A change in the acquisition, maintenance, and operating costs affects the Investment demand curve by shifting it left or right depending on whether the costs go up or down.
It's miles far greater not unusual for dividends to be paid quarterly or annually, however, a few stocks and other styles of investments pay dividends monthly to their shareholders. Handiest approximately 50 public groups pay dividends monthly out of a few three,000 that pay dividends on a regular basis.
Bitcoin, the biggest cryptocurrency by way of marketplace cap, is risky funding with high volatility. It ought to simplest be taken into consideration if you have an excessive hazard tolerance, are in a strong financial role, and may afford to lose any cash you invest in it.
For example, certificates of deposit (CDs), money market accounts, municipal bonds, and Treasury Inflation-included Securities (pointers) are some of the most secure styles of investments.
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since most data that we would like to conduct a thorough market analysis is unavailable, a researcher will find it useful to find a data series that will closely represent the variable of interest. we typically refer to this type of variable as a:
We typically refer to this type of variable as a proxy.
What is data?Data are a collection of discrete values that convey information, describing quantity, quality, fact, statistics, other basic units of meaning sequences of symbols that may be further interpreted. A datum is an individual value in a collection of data. Data is a collection of raw, unorganised facts and details like text, observations, figures, symbols and descriptions of things etc. In other words, data does not carry any specific purpose and has no significance by itself.
The data is classified into majorly four categories:
Nominal dataOrdinal dataDiscrete dataContinuous dataTo learn more about data, refer;
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In order to be classified as a developmental disability, a disorder must have three components.
a. true
b. false
In order to be classified as a developmental disability, a disorder must have three components. This statement is true.
The term "developmental disability" refers to a wide range of chronic diseases that include physical or mental disabilities that appear before adulthood. People who have developmental impairments may struggle in several facets of life, particularly when it comes to speech, movement, learning and independent living. Early identification of developmental disorders is possible, and they can last the entirety of a person's life. Global developmental delay is a term used to describe a developmental disorder that impacts all aspects of a child's development.
The most prevalent developmental impairments are learning disorders like dyslexia, Tourette's syndrome, dyspraxia, dysgraphia, Irlen Syndrome and dyscalculia, as well as motor disorders.
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reese is comparing retirement plans with prospective employers. abc, inc., offering a salary of $52,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. xyz company will match 100 percent of this contribution up to 6 percent of salary, but he can contribute up to 15 percent of his income. xyz company is offering a $48,000 salary. if reese assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a 9 percent return, how much would each account be worth?
CDs, Treasury bills, U.S. savings bonds, and money market funds are all examples of low-risk investments that are frequently found in IRAs. Higher-risk ventures incorporate shared reserves, trade exchanged reserves (ETFs), stocks, and securities.
Where are funds for retirement invested?Prior to relatively recent times, pension funds primarily used a liability-matching strategy to invest in stocks and bonds. They are now investing in a wider range of asset classes, such as real estate, infrastructure, private equity, and inflation-hedging securities like gold.
What kind of retirement fund is typical?There are indications that Americans may be increasing their personal savings, as stated in the 2021 Planning & Progress Study conducted by Northwestern Mutual.
Personal savings increased by 10% on average: between $73,100 in 2021 and $65,900 in 2020.In a similar vein, the average amount saved for retirement rose by 13%:between $87,500 and $98,800.
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Susan has complained that there are too many accounts to choose from in her chart of accounts. What are 2 ways you can clean up her chart of accounts to reduce the number of accounts shown?
Answer:
Export accounts
Delete the chart of accounts
Make sub-accounts
[Make accounts inactive]
[Merge duplicate accounts]
Susan has complained that there are too many accounts to choose from in her chart of accounts.
What are 2 ways you can clean up her chart of accounts to reduce the number of accounts shown?
Following are the 2 ways you can clean up her chart of accounts to reduce the number of accounts shown.
Export accountsDelete the chart of accounts and make sub-accounts[Make accounts inactive][Merge duplicate accounts]What is the way to merge duplicate accounts?Select the duplicate records and then press the Merge button. Select the master record (the one you want to maintain) in the Combine Records dialog box, and then select any fields in the new record that you wish to merge into the master record. The information in these fields may supersede the information in the master record. Select OK.
Editions Required and User Permissions
Click Merge Accounts in the Tools section of the Accounts tab.Enter a search term to detect duplicate accounts. Choose up to three accounts to combineChoose one account to be the master record. Choose the fields you wish to keep from each record. Select Merge.To learn more about merging duplicate accounts, click
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emery is an agent for downtown market corporation. emery makes an innocent misrepresentation when entering into a contract on behalf of downtown market with cool fruits, inc. cool fruits
Emery is an agent for the downtown market corporation. emery makes an innocent misrepresentation when entering into a contract on behalf of the downtown market with cool fruits, inc. cool fruits may rescind the contract.
A marketplace is an area in which consumers and sellers can meet to facilitate the change or transaction of products and services. Markets can be bodily like a retail outlet, or digital like an e-store. other examples include unlawful markets, public sale markets, and economic markets.
The marketplace definition provides a framework for competition evaluation. for instance, market stocks may be calculated most effectively after the marketplace has been defined and, whilst thinking about the potential for brand-spanking new access, it's miles vital to discover the marketplace that is probably entered.
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which of the following would be the initial effect of an individual making a $10,000 cash deposit in a bank?
a. The money supply would rise by $10,000.
b. The money supply would fall by $10,000.
c. The money supply would not be affected by the deposit.
d. The money supply would fall, but by less than the $10,000 deposit.
Answer:
C. The money supply would not be affected by the deposit
Explanation: The person depositing has the same amount of money regardless in cash or in his bank, so it wont be affected.
Which types of files are saved with the mp3 and .zip extensions?
v files are saved with the mp3 extension and
files are saved with .zip extension.
The solution is audio documents and compressed documents.
What is audio document?
The mp3 record is generally related to MPEG audio documents and is a coding layout for virtual audio documents. MP3 record sorts frequently designates documents that comprise MPEG-1 audio and video encoded data .A zip record is a compressed record normally in ZIP layout this is broadly used to archive a pc supported record layout. Files related to .zip extensions are compressed right into a unmarried record for clean transportation. mp3 documents are audio documents, and .zip documents are compressed in order that they take much less space. By so called (unzipping).zip documents, some thing documents had been compressed can be accessible.
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Section 5.5 in the textbook provides a definition of "ethics" and "corporate culture". Do you believe that unethical decisions made by managers and employees could be due to the company's corporate culture or a few thousand “bad apples?”
The entire organization is corrupted. Actually, while a few thousand apples may not be corrupt, the vast majority are. This includes upper management, which is likely the most corrupt.
The organization's culture is its heart, and it acts as the glue that holds everything together. The issue is that when the culture or core of an organization is unreasonable, the rest of the organization is contaminated.
I believe that the culture of an organization is its own soul. I believe that both organizations and people are good by nature, but a series of bad events can turn good into evil.
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when preparing the statement of cash flows most companies use the
When preparing the statement of cash flows most companies use the indirect method to prepare the operating activities.
What is statement of cash flows and what method most companies use for the preparation of cash flows?Statement of cash flow is a financial slip of data collected of all the cash inflows with the company recieves.Here the question is asked of the method the company uses to prepare the statement of cash flows.Whenever an organization works , lots of transactions and money give and take happens and ultimately the company end up using standard methods.Cash flow is calculated as such that the total operating income and the dereciation charge adds up.The tax then substracted from the added up value of operating income and depreciation charge of the company.To know more about cash visit:
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the best way to maintain your credit standing is to: multiple choice declare a chapter 7 bankruptcy. use credit sparingly. repay your debts on time. use as many credit cards as you can. pay cash for your purchases.
The best way to maintain your credit rating is to repay your debt on time. Timely payment is one of the most effective ways in which to determine yourself as an honest credit risk to future lenders.
Of the quintet, capacity—basically, the borrower's ability to get income to service the interest and principal on a loan—generally ranks because the most vital.
Good credit rating is the make-or-break detail that determines whether or not you get a mortgage, auto loan or student loan. Bad credit, on the other hand, can create it tough to induce a MasterCard with a coffee charge per unit and dearer to borrow cash for any purpose.
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an employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. from then on, the employee wears a dress shirt and tie to work. this is an example of:
An employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. From then on, the employee wears a dress shirt and ties to work. This is an example of positive punishment.
What is positive punishment?Positive punishment is a form of discipline that involves adding something unpleasant after a behavior is displayed to decrease the likelihood of that behavior being repeated. Positive punishment can be effective in reducing undesirable behavior, but it can also backfire if it is used excessively or unpredictably. If a child is constantly being punished for various infractions, they may become resentful and rebellious. It is important to use positive punishment sparingly and only when necessary.
In this scenario, the supervisor reprimanded the employee for wearing jeans in the workplace. This acted as a form of punishment to bring positive changes in the employee and the employee also, later on, changed his dress style.
It can be concluded that an employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. From then on, the employee wears a dress shirt and ties to work. This is an example of positive punishment.
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according to the rational rule for sellers, a seller should choose the output level where and the price level . average total cost is minimum; that is associated with maximum revenue sales are maximum; where revenue is maximum maximum revenue is obtained; that is on the seller's demand curve for that output marginal cost equals marginal revenue; that is on the seller's demand curve at that output level
The Rational Rule for Sellers says that vendor should sell one more unit of an object if the price is: much less than the marginal cost: much less than the marginal benefit: larger than or equal to the marginal benefit.
What is the rational rule for buyers?The Rational Rule for Buyers: Buy extra of an object if the marginal advantage of one greater is larger than (or equal to) the price
What is a rational monetary decision?Much of economic idea is primarily based on the assumption that people's economic alternatives are rational. This capability two things: They usually attempt to maximise their very own financial self-interest. They are in a position to determine the monetary costs and benefits to themselves of making alternative selections
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Answer:
Common Stock
Paid-in Capital in Excess of Land
Explanation:
Common Stock and Paid-in Capital in Excess of Par Value are credited
John Kim contributed equipment with a fair market value of $5,000 in exchange for 100 shares of Rio Inc.'s common stock with a par value of $1 per share. Rio Inc should record this transaction as a credit in common stock and paid in capital in excess of Par value.
Paid-in capital in excess of par value is the difference between the stock's fair market value and its par value. It is the premium paid for a stock that has appreciated in value. Paid in capital in excess of par is formed when investors pay more than the par value for their shares of stock.
Hence, the transaction of of $5,000 should be recorded as a credit in paid in capital in excess of par value.
Another transaction is : 100 shares of Rio Inc's worth $1 per share. Hence, transaction of $100 should be recorded as a credit in common stock.
Therefore, the transactions should be recorded as follows:
- common stock $100 (credit)
- Paid in Capital in excess of Par value $5,000 (credit)
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A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging materials to other cosmetics manufacturing companies. In addition, that same cosmetics manufacturer may sell to a retailer that buys similar cosmetics from a number of other manufacturers. This scenario illustrates?.
The cosmetics industry is the field of commerce that produces and distributes cosmetics. These consist of items for the skin and hair, such as moisturizers and cleansers, as well as amenities like bubble bath and soap, as well as color cosmetics like foundation and mascara.
How to manufacture cosmetics:
The creation of cosmetics is dominated by a small number of early 20th-century multinational corporations, but the distribution and sale of cosmetics is dominated by a wide range of businesses.
A business that makes cosmetics is referred to as a cosmetic maker. For instance, a cosmetics company might create things for daily grooming like soap, shampoo, and toothpaste as well as ones that make one smell good like deodorant and perfume.
A person that manufactures and sells makeup, hair care products, or cosmetics is known as a cosmetic manufacturer. Some companies produce and market all three types of cosmetics. Some concentrate on the creation and marketing of trendy makeup. Some people create products using natural ingredients.
Process manufacturing is a type of production that involves integrating supplies, components, or raw materials according to a formula or recipe to produce items. It is widely employed in sectors that manufacture things in large quantities, including those that generate food, drinks, refined oil, gasoline, pharmaceuticals, chemicals, and plastics.
A manufacturer is a person or business that transforms raw materials into finished goods that are then distributed to consumers, wholesalers, distributors, retailers, or other producers who can employ them to make more complex products. Manufacturers use a variety of tools, machinery, and processes to do this.
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which of the following two effects of a decrease in the tax rate on saving would raise savings? a. the income effect and the substitution effect b. the substitution effect but not the income effect c. the income effect but not the substitution effect d. neither the substitution effect nor the income effect
Two effects of a decrease in the tax rate on saving would raise savings the substitution effect but not the income effect.
What is tax rate?
A tax rate is the percentage at which someone or a business is taxed. The federal government and so many state governments in the United States both employ a progressive tax rate system, meaning that as taxable income for an individual or entity rises, so does the percentage of tax that must be paid. With a progressive tax rate, more money is taken in from taxpayers who make more money. The government frequently levies taxes on its citizens to fund infrastructure development and maintenance. The money raised from taxes goes toward enhancing the country, society, and everyone who lives there. A tax rate is applied to money received by the a taxpayer in the US and many other nations worldwide.
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A company needs construction equipment to complete a project over the next 20 months. The equipment costs $10,000. Instead of purchasing the equipment with a 12% note, the company leases the equipment with payments of $300 due at the end of each month. For what amount would the company record the lease liability at the beginning of the lease?.
The amount that the company would record the lease liability at the beginning of the lease, based on the note rate, the cost of equipment, and the payments, is $5, 414.
How to find the lease liability?The lease liability to be recorded will be the present value of the payments that the company will make over the 20 months, given the interest rate on the note of 12%.
Because this amount is stable and constant over a certain period of time, it is an annuity. The present value of the lease payments on the equipment can therefore be found by looking for the present value of an annuity.
The present value of this annuity can be found by the formula:
= Lease payments monthly x Present value of annuity interest factor, periodic interest, number of periods
Periodic interest:
= 12% / 12 months per year
= 1%
The lease liability is therefore:
= 300 x Present value of annuity interest factor, 1%, 20 periods
= 300 x 18.04555
= $5, 414
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